Tennessee Code Title 13. Public Planning and Housing § 13-23-312

(a) The state shall allocate two million five hundred thousand dollars ($2,500,000) in fiscal year 1985-1986 to fund a pilot demonstration program in any county having a population of more than seven hundred thousand (700,000), according to the 1980 federal census or any subsequent federal census. Under the pilot demonstration, appropriate operational rules and procedures shall be developed and tested and appropriate documentation provided to the general assembly to evaluate the effectiveness of the program.

(b) Subsequent allocations under this part to provide for expansion as a statewide program shall be based upon the results of the demonstration program as herein established, shall be reviewed annually, and shall be modeled after the rules and procedures as established under the pilot demonstration. To the extent that subsequent allocations from the state are made available under this part for housing assistance to very low and low income households, then such allocation is subject to funding provided through the housing program fund established in title 13, chapter 23, part 4, and in accordance with the rules and regulations promulgated by the agency, pursuant thereto.

(c) Local participating governments may establish a loan fund endowment in connection with the homebuyers' revolving loan program, and may charge up to five dollars ($5.00) per month for the term of the loan as a participation fee in lieu of interest on loans made to qualified buyers. All proceeds from a loan fund endowment shall be used to support the revolving loan fund and may be used as local matching funds as required under this part.

(d) A local participating government may make “in-kind” contributions toward its matching share, not to exceed ten percent (10%) of the total match required. Such in-kind match shall include, but not be limited to, personnel costs, program support costs, such as accounting, audit, purchasing services, and other costs as established by a cost allocation plan which directly supports program operations.

(e) A local participating government may use up to ten percent (10%) of its matching cash contribution for administrative purposes to be based either upon a cost allocation plan or upon actual expenditure basis.