Eligible costs include both project costs and administrative costs, and each eligible cost must be associated with an eligible activity.

• Project costs. The HOME regulations allow HOME funds to be used for a variety of project-related costs, including hard and soft costs.
• Administrative costs. PJs may use up to 10 percent of their annual HOME allocations for reasonable administrative and planning costs. In addition, up to 10 percent of program income deposited in the PJ's local HOME account during a program year may be used for administrative and planning costs.
• Prohibited costs. The HOME regulations also specifically prohibit the use of HOME funds for specific activities.
• Eligible costs depend on the nature of the program activity. In order to be eligible, a cost must be associated with an eligible activity.