(The Tennessean) The state’s housing agency turned down the chance to apply for $12 million in federal rental assistance for people with disabilities – overruling a recommendation by its own staff and by the state’s TennCare Medicaid agency.

Advocates for the disabled say the funding is desperately needed to address a housing crisis among people with disabilities who want to live independently but who are often forced into homelessness or into institutions, which cost the state more money.

The aid is the only major new source of federal funding available this year for people who are both very poor and have physical, mental or developmental disabilities, said Ann O’Hara, associate director for Boston-based Technical Assistance Collaborative, a consulting firm. O’Hara said her agency has worked with at least 20 other states who have expressed interest in the funding.

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