Affordable Housing Trust Fund

The Affordable Housing Trust Fund is a targeted initiative aimed at expanding and preserving affordable housing options within the City of Knoxville. This program, administered by the East Tennessee Foundation, supports a broad range of activities related to affordable housing, particularly for low-income and very low-income households. The Fund emphasizes the development, rehabilitation, and preservation of owner-occupied housing, along with programs that enhance rental opportunities for the most financially vulnerable residents. The Fund is structured to accommodate various types of projects under two primary categories: new construction and major rehabilitation, and stabilization, education, and assistance programs. Eligible construction activities include the development of new single-family homes, condominium or cooperative housing, and significant rehabilitation efforts. Pre-development costs such as architectural and engineering services are also considered, as well as interest rate write-down assistance. Stabilization and support initiatives funded may involve minor home repairs—including roofing—homebuyer education, homeownership counseling, and foreclosure prevention services. Grants from the Affordable Housing Trust Fund are generally awarded on a one-year basis, although longer durations may be permitted depending on project requirements. Funding may be delivered through multiple mechanisms, including secured or forgivable loans, lines of credit, or direct grants. However, only grant funding is available for renter-occupied housing projects. Eligibility for these funds is limited to nonprofit and governmental entities actively working on affordable housing in Knoxville. Individual applicants are not eligible, and organizations must demonstrate non-discrimination per East Tennessee Foundation policies. The program prioritizes projects that fulfill unmet community housing needs, improve homeownership or rental conditions for low-income residents, and offer strong potential for leveraging additional resources. Proposals must demonstrate managerial and financial competency and be cost-efficient, innovative, and sensitive to neighborhood and historic district considerations. Projects designed for long-term affordability and ease of maintenance are especially encouraged. Application submission is exclusively through the East Tennessee Foundation’s online grants management portal. Prospective applicants are advised to consult application tutorials and instructions prior to logging in. The application deadline is August 1st of each year, with review and decisions made by the Advisory Board during their fall meeting. Final award decisions are contingent upon the availability of funds. For additional information or questions, applicants may contact Traci Sisson, Assistant Director of Stewardship & Donor Services at the East Tennessee Foundation. She can be reached at (865) 524-1223 ext. 112 or toll-free at (877) 534-1223 ext. 112.