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Use this section to challenge your knowledge of HOME Rental Housing. Read the scenario below and begin the exercise. Review the questions and determine the correct response. Once you have answered one question and seen your result, click next to move to the next question.
Scenario
Homeview Gardens is a 100 unit rental housing project near the downtown area. It was built in the 1960s and, although it is was solidly built, now shows significant signs of wear and tear. It is located in a neighborhood that has received substantial public investments, but crime is high and the schools are struggling. Creative Ventures, a local nonprofit, would like to purchase and rehabilitate all units in Homeview Gardens.
The current rents and occupancy are as follows:
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Number Occupied
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Units
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Very Low Income Households
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Low-Income Households
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80%+
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Vacant
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2 Bedrooms
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50
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15
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15
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15
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5
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3 Bedrooms
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50
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10
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15
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20
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5
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Income Limits in the jurisdiction are as follows:
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Percentage of Median Income
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80%
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60%
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50%
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Income
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30% mo.
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Income
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30% mo.
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Income
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30% mo.
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3 Person HH
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$31,300
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$783
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$23,460
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$587
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$19,950
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$499
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4 Person HH
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$34,800
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$870
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$26,100
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$653
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$21,750
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$544
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The HOME rents and maximum HOME subsidy limits are:
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2 Bedrooms
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3 Bedrooms
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LOW HOME RENT: 30% of 50% Income
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$470
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$500
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HIGH HOME RENTS: 30% of 65% of Median Income, or FMRs
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$610
$570
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$630
$640
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Existing Project Rents
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$525
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$550
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Rents in Neighborhood
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$540
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$575
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Total development costs (acquisition, rehabilitation, and soft costs) for this project are estimated at $4.2 million.
The Maximum HOME per-units subsidy in this area for a two bedroom unit is $49,000 and for a three bedroom unit is $51,000.
Go to Question 1
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