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Section III: the Home Program: Home Investment Partnerships


	Information by State Print version

(Administered by the Office of Community Planning and Development)

A. PURPOSE

The HOME Program provides funds to States and local governments based on a formula to implement local housing strategies designed to increase the supply of housing for low- income persons. Indian tribes receive funds on a competitive basis.

B. ELIGIBLE ACTIVITIES

The funds may be used for many housing activities, including:

tenant-based rental assistance (including security deposits);
assistance to homebuyers (including assistance with downpayments and closing costs);
property acquisition;
new construction;
rehabilitation;
site improvements;
demolition;
relocation; and
administrative costs.

All HOME-assisted housing and rental assistance is targeted to low-income families, with deeper targeting required for rental housing. Funds may not be used for matching funds for other Federal programs, public housing operating subsidies or activities authorized under the Public Housing Modernization program, or activities under the low-income housing preservation Acts of 1987 or 1990 (ELIHPA and LIHPRHA), except for priority purchasers.

C. CONSOLIDATED PLAN/CHAS

Before receiving HOME funds, a jurisdiction must submit (and HUD must approve) its Consolidated Plan, including certain HOME program submissions. The contents required by law for the Comprehensive Housing Affordability Strategy (CHAS) have been incorporated into the Consolidated Plan, in which local governments and States explain how they will coordinate the HOME program with the CDBG, ESG, and HOPWA programs. The Consolidated Plan describes housing needs and the State's or local government's strategic plan to address those needs, including what activities will be funded. The final rule for the Consolidated Plan was published on January 5, 1995.

D. HOME MATCH

Participating jurisdictions are required to provide a match in an amount of 25% of the funds drawn from the jurisdiction's HOME Investment Trust Fund in any given fiscal year. The matching requirements are reduced if a jurisdiction is in fiscal distress or severe fiscal distress, respectively. The match requirement may be waived in cases of Presidentially-declared disasters.

E. CHDO SET-ASIDE

Jurisdictions are required to reserve 15% of their HOME funds for housing to be developed, sponsored, or owned by Community Housing Development Organizations (CHDOs). A CHDO is a private, community-based nonprofit organization which has among its purposes the provision of decent affordable housing to low- income persons.

F. ALLOCATION

In general, HOME funds are allocated by formula. Prior to such allocation, however, several set-asides are funded.

The authorizing statute provides one percent of all HOME funds for Indian tribes to be distributed on a competitive basis (section 217(a)(2)). The FY 1996 and FY 1997 Appropriations Acts provided 1.5% ($21 million).
A $47 million set-aside authorized under section 205 for technical assistance has not been reauthorized since FY 1994. Recent appropriation Acts, however, have provided between $22 and $27 million for technical assistance.
There is a set-aside for insular areas that is $750,000 or 0.2%, whichever is greater (section 217(a)(3)).

The balance of HOME funds is allocated by formula with 60% going to cities, urban counties, and consortia (contiguous units of local government) and 40% for States (section 217(a)(1)). This formula measures the jurisdiction's share of the total need for an increased supply of affordable housing. All States are guaranteed a minimum of $3 million. Local jurisdictions must receive a minimum allocation under the formula (which varies depending on appropriations levels) in order to receive direct funding.

Legal Authority: Title II of the Cranston-Gonzalez National Affordable Housing Act; 42 U.S.C. 12701 et seq.

Program Status: The FY 1997 appropriation is $1.4 billion, and is subject to the following set-asides: $21 million for Indian Tribes; $2.8 million for the insular areas; $7 million for management information systems; $22 million for technical assistance; and $15 million for housing counseling under section 106 of the HUD Act of 1968. Section 213 of the FY 1997 appropriations Act amends the HOME program nondiscrimination provision by authorizing HUD to waive this section with respect to HOME funds made available for lands set aside under the Hawaiian Homes Commission Act.

Beginning in FY 1998, the Indian component of the HOME program will be removed and folded into the Native American Housing Block Grant program (see Section XIV Part A of this document).

Content current as of 5 December 2000

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