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The HOME Program imposes an affordability period on projects assisted with HOME funds in order to ensure that HOME investments yield affordable housing over the long term.
For Homebuyer Projects, the length of the affordability period is based on the amount of HOME funds invested in the property.
Affordability Period for Homebuyer Projects:
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HOME FUNDS PROVIDED
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AFFORDABILITY PERIOD
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<$15,000
$15,000 - $40,000
>$40,000
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5 years
10 years
15 years
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For Rental Projects, the length of the affordability period is based on the amount of HOME funds invested in the property, as well as on the nature of the activity funded.
Affordability Period for Rental Projects:
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ACTIVITY
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AVERAGE PER-UNIT HOME
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MINIMUM AFFORDABILITY PERIOD
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Rehabilitation or Acquisition of Existing Housing
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<$15,000
$15,000 - $40,000
>$40,000
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5 years
10 years
15 years
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Refinance of Rehabilitation Project
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Any dollar amount
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15 years
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New Construction or Acquisition of New Housing
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Any dollar amount
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20 years
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Click on the underlined keywords below for more information on the affordability period and related requirements applicable to each type of HOME activity.
- For homebuyer projects, the affordability period affects the terms of the resale/recapture of the property if sold during the affordability period.
- For rental projects, rent and occupancy requirements remain in effect for the length of the affordability period.
- Affordability periods do not apply to homeowner rehabilitation or TBRA activities.
For further guidance, see HOMEfires, Vol. 5, No. 2 [This HOMEfires is out of date and is being updated by HUD].
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