History and Purpose

The HOME Investment Partnerships Program or HOME Program was created by the National Affordable Housing Act of 1990. The purpose of the HOME Program is to increase the supply of safe, decent, sanitary, and affordable housing for low and very-low-income households. HOME also seeks to expand the capacity of nonprofit housing providers, strengthen the ability of state and local governments to provide housing; and leverage private-sector participation.

HOME funds are allocated to states and local jurisdictions as one of four community development formula grant programs administered by the U.S. Department of Housing and Urban Development (HUD). Each year Congress appropriates more than $1 billion to support the HOME Program.

Funding

Eligible communities can apply for money under the HOME Program (in addition to any or all three of HUD's other community development programs) by preparing and submitting a Consolidated Plan. The Consolidated Plan provides a needs assessment and housing market analysis for the jurisdiction and puts forth a strategy for addressing identified needs and achieving housing and community development objectives. In addition to being an application for Federal funds, the Consolidated Plan serves as a blueprint for the jurisdiction's strategy to address housing affordability and community development issues.

Each year Congress allocates HOME Program funds by formula to state and local governments, referred to as participating jurisdictions or PJs, to operate the Program.

• The formula used to allocate HOME funds is based in part on factors including the age of units, substandard occupied units, number of families below the poverty rate, and the population in each PJ.
• After set-asides for technical assistance and insular areas are subtracted from the total Congressional appropriation, 40 percent of the remaining funds are allocated by formula to states and 60 percent to local governments.

Activities

Communities can use HOME funds to fund a wide variety of housing activities for low- and very low-income families, including

• Homebuyer programs, which may include downpayment and closing costs assistance, construction loans, or loan guarantees for acquisition, rehabilitation, or new construction;
• Rental housing programs, consisting of construction loans, permanent mortgage loans, bridge loans, or loan guarantees for acquisition, rehabilitation, new construction, and refinancing;
• Homeowner rehabilitation programs, including grants, loans, interest subsidies, and loan guarantees to pay for hard costs, related soft costs, and refinancing expenses; and
• Tenant-based rental assistance (TBRA) to pay for rent, utility costs, security deposits, and utility deposits.

In the execution of these activities, participating jurisdictions and fund recipients are governed by HOME Program regulations, which can be found at CFR 24 Part 92. This module of the HOME Front presents a summary of these regulations for your reference, but users should refer to the official regulations for clarification of HOME requirements. Furthermore, PJs must ensure that, in addition to HOME Program regulations, all other requirements for the use of Federal funds are being met in the activities undertaken.