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Homebuyer Programs

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Eligible HOME Activities

The HOME Program allows PJs to establish programs that create affordable homeownership opportunities. These programs may:

  • Provide direct assistance to low-income
    households in the form of grants or loans to cover some of the costs of homeownership (such as down payment, closing costs, or carrying costs), and/or
  • Address issues of supply by constructing or rehabilitating single family homes.

This flexibility in program design allows PJs to address the affordable housing needs specific to their communities in order to help make homeownership an attainable goal for low-income households.

While the HOME Program provides PJs considerable flexibility in designing homebuyer programs, it also has specific requirements that must be met in the following areas:

  • Eligible activities. For homebuyer programs using HOME funds, eligible activities include: acquisition, acquisition and rehabilitation, new construction, and lease purchase.


  • Forms of financial assistance. PJs may structure HOME assistance for homebuyer programs using any of the forms of HOME assistance listed in Subsidies under Basic HOME Provisions.


  • Eligible costs. The HOME Program allows hard and soft costs as well as refinancing for homebuyer activities. Click on the Eligible Costs for a list.


  • Eligible Property types. The following property types may be assisted through a homebuyer program: single family housing, condominiums, cooperative unit, or a manufactured home.


  • Property values. The value of the HOME-assisted property must not exceed 95 percent of the median purchase price for the area.


  • Property standards. Properties that are purchased with HOME funds must meet certain standards. Click on HOME Property Standards to review these standards.


  • Eligible applicants. To be eligible for HOME funds, a homebuyer must be low income, acquire the home with an acceptable form of ownership, and plan to occupy the property as a principal residence.


  • Affordability periods. For homebuyer programs, affordability periods are based on the amount of HOME funds provided for the property. For specific period lengths, click on HOME Affordability.


  • Resale/Recapture requirements. PJs must use one of these two options to control the resale of HOME-assisted homebuyer properties during their affordability periods.


  • Other Federal requirements. HUD's HOME training manual Building HOME: A HOME Program Primer provides detailed information about the requirements described in this table.
 
Content current as of 10 July 2009   Follow this link to go  Back to top