Certain activities are specifically prohibited by the HOME regulations at 24 CFR 92.214. As such, the following list of activities may not be supported by HOME funds.

• Project reserve accounts. HOME funds may not be used to provide project reserve accounts (except for initial operating deficit reserves) or to pay for operating subsidies.

• Tenant-based rental assistance for certain purposes. HOME funds may not be used as rental assistance in conjunction with the Federal Rental Rehabilitation Program (Section 17) to prevent displacements. In addition, they may not be used for certain mandated existing Section 8 Program uses, such as Section 8 rent subsidies for troubled HUD-insured projects.
• Match for other programs. HOME Program funds may not be used as the "nonfederal" match for other Federal programs except to match McKinney Act funds.
• Operations or modernization of public housing. HOME funds may not be used to provide annual contributions for the operation of public housing or to carry out modernization activities in public housing.
• Construction of public housing. HOME funds may not be used to finance the construction of conventional public housing.
• Double dipping. During the first year after project completion, the PJ may commit additional funds to a project. After the first year, no additional HOME funds may be provided to a HOME-assisted project during the relevant affordability period except that:
  • Rental assistance to families may be renewed.
    
  • Rental assistance may be provided to families that will occupy housing previously assisted with HOME funds.
    
  • A homebuyer may be assisted with HOME funds to acquire a unit that was previously assisted with HOME funds.
  
  
• Acquisition of PJ-owned property. A PJ may not use HOME Program funds to reimburse itself for property in its inventory or property purchased for another purpose.
• However, in anticipation of a HOME project, a PJ may use HOME funds to acquire property or reimburse itself for property acquired with other funds specifically for a HOME project.
• Project-based rental assistance. HOME funds may not be used for rental assistance if receipt of the funds is tied to occupancy in a particular project. Funds from another source, such as Section 8, may be used for this type of project-based assistance in a HOME-assisted unit.
• HOME funds may be used for other eligible costs (such as rehabilitation) in units receiving project-based assistance from another source - for example, Section 8 or state-funded project-based assistance.