Alexander, Frist Announce $78 Million For Tennessee Homeownership Projects - Grants Promote Homeownership Opportunities For low-Income, Minority Households

Posted on July 29, 2004

WASHINGTON - U.S. Senators Bill Frist (R-TN) and Lamar Alexander (R-TN) today announced over $78 million in grants for Tennessee through the Department of Housing and Urban Development, to support programs that promote homeownership opportunities for low-income and minority households. "Homeownership is one of our most essential economic and social investments," said Frist. "This funding reflects HUD's commitment to eliminating poverty housing, and making the dream of homeownership a reality for all Tennesseans." "I appreciate HUD's investment to help strengthen Tennessee communities," Alexander said. "These funds will revitalize neighborhoods throughout the state, giving families better places to live. When people have a place to live - crime goes down, scores go up in our schools, and people have better jobs. Senator Frist and I will continue to work with HUD Secretary Alphonso Jackson to bring needed improvements to Tennessee."

HUD's assistance will be provided through five programs: Community Development Block Grant Program (CDBG); HOME Investment Partnerships Program (HOME); American Dream Downpayment Initiative (ADDI); Emergency Shelter Grants (ESG); and, Housing Opportunities for Persons with AIDS (HOPWA).

Of the total funding for Tennessee, more than $53 million will go to the Tennessee State Program, which funds state housing grants to local communities throughout Tennessee. A detailed list of Tennessee funding and information on each of the grant programs is included.

HUD is the nation's housing agency committed to increasing homeownership, particularly among minorities; creating affordable housing opportunities for low-income Americans; and supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development as well as enforces the nation's fair housing laws.

Frist made the announcement today in Nashville before building a home for a local family through a project sponsored by the Congress Building America Program and the Nashville Area Habitat for Humanity. Frist worked along side future homeowner Anita Phillips, a single mom with three children living in Nashville. Phillips' home is the first to be built partnering CBA and the Nashville Area Habitat for Humanity. Last Spring, Frist and Alexander joined fellow lawmakers and volunteers in constructing a CBA home with a local family in Washington, DC.

Total Tennessee Funding:


ADDI $52,388

CDBG $278,000

HOME $1,015,818


CDBG $405,000


CDBG $709,000

HOME $443,230

Knox County:

ADDI $54,258

CDBG $9,742,000

ESG $367,148

HOME $5,100,148

HOPWA $2,134,000


CDBG $349,000


CDBG $722,000


CDBG $9,742,000

HOME $5,100,148

ADDI $528,724

ESG $367,148

HOPWA $2,134,000

Shelby County:

ADDI $41,241

CDBG $1,366,000

HOME $438,216

TN State Program:

ADDI $1,602,419

CDBG $31,250,733

ESG $1,379,083

HOME $18,259,297

HOPWA $739,000

Community Development Block Grant (CDBG) Program has awarded over $100 billion to state and local governments to target their own community development priorities. CDBG is one of HUD's oldest and most popular programs. The rehabilitation of affordable housing has traditionally been the largest single use of the grants although CDBG is also an important catalyst for job growth and business opportunities. CDBG funds are distributed by formula around the country based on a community's population, income levels, poverty rates and the age of its housing stock.

HOME (HOME Investment Partnerships Program) is the largest federal block grant to state and local governments designed exclusively to produce affordable housing for low-income families. Since 1992, more than 600 communities have committed to produce nearly 785,000 affordable housing units, including almost 300,000 for new homebuyers purchasing their first home. In addition, over 100,000 tenants have received direct rental assistance.

The American Dream Downpayment Initiative (ADDI) aims to increase the homeownership rate, especially among lower income and minority households, and to revitalize and stabilize communities. ADDI was created to assist low-income first-time homebuyers in purchasing single-family homes by providing funds for downpayment, closing costs, and rehabilitation carried out in conjunction with the assisted home purchase.

Emergency Shelter Grants (ESG) help local communities to meet the basic shelter needs of homeless individuals and families. These grants also provide transitional housing and a variety of support services designed to move homeless individuals toward permanent housing.

Housing Opportunities for Persons with AIDS (HOPWA) grants are distributed based on the number of AIDS cases reported to the Centers for Disease Control and Prevention. The grants provide rental assistance and support services to individuals with HIV/AIDS and their families. In addition, the HOPWA program also helps many communities develop strategic AIDS housing plans and fill in gaps in local systems of care.

Emergency Shelter Grants (ESG) provides annual grants to state, local, and private entities to improve the quality and number of emergency homeless shelters. These grants also provide transitional housing and a variety of support services designed to move the homeless away from a life on the street toward permanent housing.