Tennessee Code Title 13. Public Planning and Housing § 13-23-405

(a) Local housing programs may be established by any eligible political subdivision, as defined by § 13-23-103, except that for programs authorized by § 13-23-403(a)(4), an eligible political subdivision does include a municipality in a county which has applied for such program, or any local agency thereof which may be authorized to operate such programs pursuant to ordinance or resolution of the applicable legislative body. Such programs shall exist for the exclusive purpose of increasing the availability of adequate housing for very low, low and moderate income households, and may include new construction of housing units, rehabilitation of existing housing units and conversion of existing publicly owned or donated structures. When funds from the Tennessee housing development agency are being used by local housing programs to provide assistance, then the projects or activities shall comply with applicable rules and regulations of the agency.

(b) Local matching funds may be made available to the local housing program by the legislative body of the eligible political subdivision.