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HOME Policy Guidance
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Study
of Homebuyer Activity through the HOME Investment
Partnerships Program
This study was designed to examine the choices local
governments are making and how these choices are promoting
long-term affordable homeownership. The final report
is a comprehensive description of this research and
its findings.
Report
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CPD
Notice 04-06 - June 4, 2004
Notice of Procedures for HOME Program - Match
Reductions for Fiscal and Severe Fiscal Distress,
and for Major Presidentially-Declared Disasters under
the Stafford Act.
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CPD Notices |
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HOME
Model Program Guides |
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HOME
Training Materials |
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Library
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What's New
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CPD
Notice 04-10
- September 29, 2004
Notice of guidelines for Ensuring Equal Treatment of Faith-based
Organizations participating in the HOME, CDBG, HOPE 3, HOPWA,
Emergency Shelter Grants, Shelter Plus Care, Supportive
Housing, and Youthbuild Programs.
PDF
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CPD Notices |
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HOME Crosscutting Federal Requirements
This training module provides information on crosscutting
requirements (Federal laws and regulations beyond the HOME
Statutes and HOME Final Rule).
more...
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Front |
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Performance SNAPSHOT for Participating Jurisdictions as
of 9/30/04
Updated HOME SNAPSHOTs, which contain performance information
as of 9/30/04, are now available!
more... |
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Developing
Projects With HOME Funds: Ten Things You Need To Know About
Relocation and the Uniform Act (URA) * but might have
been afraid to ask
This booklet highlights ten key URA relocation requirements
and concepts for nonprofit organizations and others developing
HOME funded affordable housing projects.
more... | Word |
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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.
Additional information about the HOME program can be found by visiting
the HOME program web pages.
HOME
provides formula grants to States and localities that communities
useoften in partnership with local nonprofit groupsto
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.
Purpose
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:
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HOME's
flexibility empowers people and communities to design and implement
strategies tailored to their own needs and priorities. |
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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. |
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HOME's
technical assistance activities and set-aside for qualified community-based
nonprofit housing groups builds the capacity of these partners. |
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HOME's
requirement that participating jurisdictions (PJs) match 25 cents
of every dollar in program funds mobilizes community resources
in support of affordable housing. |
Types
of Assistance
HOME funds are awarded annually as formula grants to participating
jurisdictions. HUD establishes HOME Investment Trust Funds for each
grantee, providing a line of credit that the jurisdiction may draw
upon as needed. The program's flexibility allows States and local
governments to use HOME funds for grants, direct loans, loan guarantees
or other forms of credit enhancement, or rental assistance or security
deposits.
Eligible
Grantees
States are automatically eligible for HOME funds and receive either
their formula allocation or $3 million, whichever is greater. Local
jurisdictions eligible
for at least $500,000 under the formula ($335,000 in years when
Congress
appropriates less than $1.5 billion for HOME) also can receive an
allocation. Communities that do not qualify for an individual allocation
under the formula can join with one or more neighboring localities
in a legally binding consortium whose members' combined allocation
would meet the threshold for direct funding. Other localities may
participate in HOME by applying for program funds made available
by their State. Congress sets aside a pool of funding, equivalent
to the greater of $750,000 or 0.2 percent of appropriated funds,
which HUD distributes among insular areas.
Eligible
Customers
The
eligibility of households for HOME assistance varies with the nature
of the funded activity. For rental housing and rental assistance,
at least 90 percent of benefiting families must have incomes that
are no more than 60 percent of the HUD-adjusted median family income
for the area. In rental projects with five or more assisted units,
at least 20% of the units must be occupied by families with incomes
that do not exceed 50% of the HUD-adjusted median. The incomes of
households receiving HUD assistance must not exceed 80 percent of
the area median. HOME income limits are published each year by HUD.
Eligible
Activities
Participating jurisdictions may choose among a broad range of eligible
activities, using HOME funds to provide home purchase or rehabilitation
financing assistance to eligible homeowners and new homebuyers;
build or rehabilitate housing for rent or ownership; or for "other
reasonable and necessary expenses related to the development of
non-luxury housing," including site acquisition or improvement,
demolition of dilapidated housing to make way for HOME-assisted
development, and payment of relocation expenses. PJs may use HOME
funds to provide tenant-based rental assistance contracts of up
to 2 years if such activity is consistent with their Consolidated
Plan and justified under local market conditions. This assistance
may be renewed. Up to 10 percent of the PJ's annual allocation may
be used for program planning and administration.
HOME-assisted
rental housing must comply with certain rent limitations. HOME rent
limits are published each year by HUD. The program also establishes
maximum
per unit subsidy limits and maximum
purchase-price limits.
Some
special conditions apply to the use of HOME funds. PJs must match
every dollar of HOME funds used (except for administrative costs)
with 25 cents from nonfederal sources, which may include donated
materials or labor, the value of donated property, proceeds from
bond financing, and other resources. The match requirement may be
reduced if the PJ is distressed or has suffered a Presidentially
declared disaster. In addition, PJs must reserve at least 15 percent
of their allocations to fund housing to be owned, developed, or
sponsored by experienced, community-driven nonprofit groups designated
as Community Housing Development Organizations (CHDOs). PJs must
ensure that HOME-funded housing units remain affordable in the long
term (20 years for new construction of rental housing; 5-15 years
for construction of homeownership housing and housing rehabilitation,
depending on the amount of HOME subsidy). PJs have two years to
commit funds (including reserving funds for CHDOs) and five years
to spend funds.
Application
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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