U.S. Department of Housing and Urban Development’s HOME Program Summary

HOME is authorized under Title II of the Cranston-Gonzalez National Affordable Housing Act, as amended. Program regulations are at 24 CFR Part 92. The HOME program final rule is available electronically. HOME provides formula grants to States and localities that communities use-often in partnership with local nonprofit groups-to fund a wide range of activities that build, buy, and/or rehabilitate affordable housing for rent or homeownership or provide direct rental assistance to low-income people. HOME is the largest Federal block grant to State and local governments designed exclusively to create affordable housing for low-income households. Each year it allocates approximately $2 billion among the States and hundreds of localities nationwide. The program was designed to reinforce several important values and principles of community development:

  • HOME's flexibility empowers people and communities to design and implement strategies tailored to their own needs and priorities.
  • HOME's emphasis on consolidated planning expands and strengthens partnerships among all levels of government and the private sector in the development of affordable housing.
  • HOME's technical assistance activities and set-aside for qualified community-based nonprofit housing groups builds the capacity of these partners.
  • HOME's requirement that participating jurisdictions (PJs) match 25 cents of every dollar in program funds mobilizes community resources in support of affordable housing.

Eligible Activities

a) Housing Rehabilitation

b) Conversion - Conversion of any existing structure from an alternative use to affordable housing. If project involves new walls beyond the existing structure, the project is new construction.

c) Reconstruction - Building a new structure on the foundation of a previous structure.

d) New Construction - Includes: newly built projects; existing projects which involve the addition of new units outside the existing walls of the structure; and units which received their initial certificate of occupancy within the one year prior to the commitment of HOME funds.

e) Acquisition of Property - It is City policy to only pay acquisition costs for non-profit agencies. The City will reimburse private developers of Low-Income Housing Tax Credit projects for their acquisition costs in accordance with the following schedule: 90% of the City funds may be released when the project is 50% complete; the balance of the funds will be release upon the issuance of Certificates of Occupancy by the local municipality.

f) Relocation Costs - Any occupied property must include the costs of relocation.

g) Acquisition of vacant land - HOME funds can only be used when HOME or other funds have been committed for full cost of development. It is City policy to only pay acquisition costs for non-profit agencies.

h) Site Improvements - Must be "in keeping with improvements to surrounding standard projects."

i) Demolition - HOME funds can only be used when HOME or other funds have been committed for full cost of reconstruction. It is City policy to only pay demolition costs for non-profit agencies.


Home Investment Partnerships Program Application '12

Program funds are allocated to units of general local government on the basis of a formula that considers the relative inadequacy of each jurisdiction's housing supply, its incidence of poverty, its fiscal distress, and other factors. Shortly after HOME funds become available each year, HUD informs eligible jurisdictions of the amounts earmarked for them. Participating jurisdictions must have a current and approved Consolidated Plan, which will include an action plan that describes how the jurisdiction will use its HOME funds. A newly eligible jurisdiction also must formally notify HUD of its intent to participate in the program.

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