Tennessee Code Title 13. Public Planning and Housing § 13-11-112

(a) The cost to a local agency of providing payments and assistance under §§ 13-11-109 and 13-11-110 shall be included as part of the cost of a program or project for which state financial assistance is available to such local agency, and such local agency shall be eligible for state financial assistance with respect to such payments and assistance in the same manner and to the same extent as other program or project costs.

(b) No payment or assistance under § 13-11-109 or § 13-11-110 shall be required or included as a program or project cost under this section if the displaced person receives a payment required by the state law of eminent domain which is determined by the head of the state agency to have substantially the same purpose and effect.