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HOME Affordability


	Information by State Print version

ABC

	Eligible HOME Activities
	Key actors in the HOME program
	HOME financial operations
	Basic HOME provisions

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:

HOME FUNDS PROVIDED	AFFORDABILITY PERIOD
<$15,000 $15,000 - $40,000 >$40,000	5 years 10 years 15 years

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:

ACTIVITY	AVERAGE PER-UNIT HOME	MINIMUM AFFORDABILITY PERIOD
Rehabilitation or Acquisition of Existing Housing	<$15,000 $15,000 - $40,000 >$40,000	5 years 10 years 15 years
Refinance of Rehabilitation Project	Any dollar amount	15 years
New Construction or Acquisition of New Housing	Any dollar amount	20 years

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.

Content current as of 13 July 2009

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