Affordable Housing Programs

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HOME Investment Partnerships Program
Overview
The HOME Investment Partnerships Program (HOME) provides formula grants to states and localities that communities use - often in partnership with local nonprofit groups - to fund a wide range of activities including building, buying, and/or rehabilitating affordable housing for rent or homeownership or providing direct rental assistance to low-income people. HOME is the largest federal block grant to state and local governments designed exclusively to create affordable housing for low-income households. HOME funds are awarded annually as formula grants to participating jurisdictions (PJs). The program’s flexibility allows states and local governments to use HOME funds for grants, direct loans, loan guarantees or other forms of credit enhancements, or rental assistance or security deposits.
The program reinforces several important values and principles of community development:
- Flexibility empowers people and communities to design and implement strategies tailored to their own needs and priorities.
- Emphasis on consolidated planning expands and strengthens partnerships among all levels of government and the private sector in the development of affordable housing.
- Technical assistance activities and set-aside for qualified community-based nonprofit housing groups builds the capacity of these partners.
- Requirement that participating jurisdictions match 25 cents of every dollar in program funds mobilizes community resources in support of affordable housing.
HOME Final Rule
On January 6, 2024, HUD published a Final Rule in the Federal Register which would enable much needed revisions and updates to the requirements governing the HOME Investment Partnerships program.
The final rule supports the Department’s commitment to streamline and modernize programs to make them easier to use and reduce burden on participating jurisdictions. The final rule will also increase flexibility for participating jurisdictions and other program participants, while adhering to statutory intent and requiring responsible management of State and local HOME programs and better align HOME with other affordable housing funding sources to benefit tenants and residents. Recognizing the important role that HOME plays in affordable housing nationwide, HUD looks to enable state and local governments to encourage, build, and expand the supply of affordable housing activities in their communities.
- HOME Final Rule Fact Sheet
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HOME Resources
- Consortia
  Forming a consortium is a way for local governments that would not otherwise qualify for funding to join with other contiguous units of local government to directly participate in the HOME Investment Partnerships Program (HOME) program.
  In FY 2025, HUD approved 149 consortia Participating Jurisdictions (PJs). These PJs include among their members jurisdictions that are interested in taking a more regional, collaborative approach to meeting their affordable housing needs but whose individual formula allocations do not meet the minimum threshold for funding.
  The representative of the consortium, also known as the lead entity, assumes overall responsibility for compliance with the HOME program requirements. As the PJ, the lead entity is responsible for the long-term affordability requirements of all projects developed by the consortium regardless of whether the consortium is still in existence. The consortium members should have confidence in the lead entity's ability to assume and maintain this responsibility on their behalf.
  For more information on Consortia, see 24 CFR 92.101.
  FY 2025 HOME Consortia
  - FY 2025 HOME Consortia List (coming soon)
  - FY 2025 HOME Consortia Participating Members Percentage Report (coming soon)
  Guidance and Tools
  - HOME Consortia Builder - A Tool to Estimate Funding
  - Establishing and Managing a Successful HOME Consortium
  Video and Training Materials
  - Building HOME Online Training
- Expiring HOME Funds: Addressing Unexpended Balances
  HUD’s Office of Affordable Housing Programs (OAHP) conducted a webinar on Expiring HOME Funds: Addressing Unexpended Balances.
  This webinar will familiarize HOME Participating Jurisdictions (PJs) with instructions on how to identify expiring HOME grant balances and move commitments in HUD’s Integrated Disbursement and Information System (IDIS).
  This webinar covers:
  - How to locate and run the HOME Expiring Funds report;
  - Cancellation of HOME funds that are not expended by the deadline; and
  - Guidance and tools available to help PJs identify remaining HOME grant balances.
  Resources
- FAQs (coming soon)
- Match
  All Participating Jurisdictions (PJs) must contribute or match no less than 25 cents for each dollar of HOME funds spent on affordable housing. As PJs draw funds from HOME Investment Trust Funds, they incur a match liability, which must be satisfied by the end of each federal fiscal year. The matching contribution adds to the resources available for HOME-assisted or HOME-eligible projects and must come in the form of a permanent contribution to affordable housing. Generally, investments from state or local governments or the private sector qualify as matching contributions, whereas federal funds (such as CDBG) do not qualify. Eligible sources of a match for HOME funds include: cash; donated construction materials or volunteer labor; value of donated land or real property; value of foregone interest, taxes, fees, or charges levied by public or private entities; investments in on-or offsite improvements; proceeds from bond financing; the cost of supportive services provided to families living in HOME units; and the cost of homebuyer counseling to families purchasing HOME-assisted units.
  The HOME statute provides for a reduction of the matching contribution requirement under three conditions: 1) fiscal distress; 2) severe fiscal distress; and 3) for Presidentially-declared major disasters covered under the Stafford Act.
  For more information on Match requirements, see 24 CFR 92.218.
  - 24 CFR 92.218 - Amount of matching contribution
  - 24 CFR 92.219 - Recognition of matching contribution
  - 24 CFR 92.220 - Form of matching contribution
  - 24 CFR 92.221 - Match credit
  - 24 CFR 92.222 - Reduction of matching contribution requirement
  FY 2024 HOME Match Reductions
  This list includes match reductions granted for FY 2024 due to fiscal distress, severe fiscal distress, and Presidential disaster declarations. For those PJs with fiscal distress and Presidential disaster match reductions, the PJ may take the higher match reduction for the current fiscal year.
  Note: Since match reductions due to major Presidential disaster declarations are requested by PJs and granted by field offices at any time during the fiscal year, this list will be updated as needed.
  - Local Jurisdictions
    - When a local jurisdiction meets one of the distress criteria, it is determined to be in fiscal distress and receives a 50 percent reduction of match. If a local jurisdiction satisfies both distress criteria, it is determined to be in severe fiscal distress and receives a 100 percent reduction of match.
      FY 2024 Calculations
      FY 2024 individual poverty rate and per capita income (PCI) income were based on data obtained from the ACS 2017-2021 5-Year Estimates from Census. These were the latest data available at the time.
      For a jurisdiction to qualify as distressed based on the poverty criterion, its percentage of persons in poverty must have been at least 16.17 percent, which is 125 percent of the average national rate for persons in poverty of 12.94 percent.
      For a jurisdiction to qualify as distressed based on the PCI criterion, its average PCI must have been less than $28,051 which is 75 percent of the average PCI of $37,401.
  - State Jurisdictions
    - For a state to qualify under the personal income growth rate criterion, the state's rate must be less than 75 percent of the average national personal income growth rate during the most recent four quarters.
      FY 2024 Calculations
      The FY 2024 personal growth rate was based on data received from the beginning of the first quarter of 2023 to the end of the first quarter of 2024. These were the latest data available at the time.
  For a state to qualify as distressed based on the personal income growth rate, the state per capita income growth rate must have been less than 3.58 percent which is 75 percent of the average national personal income growth rate of 4.78 percent.
- Laws and Regulations
  Laws
  Title II of the Cranston-Gonzalez National Affordable Housing Act contains the HOME statute and subparts:
  Appropriations Law
  - Consolidated and Further Continuing Appropriations Act of 2016
  - Requirements enacted to improve project and developer selection by Participating Jurisdictions (PJs) and to ensure that there is adequate market demand for FY 12/13 projects.
  - Consolidated and Further Continuing Appropriations Act of 2013
  - Consolidated and Further Continuing Appropriations Act of 2012
  Regulations and Rules
  Uniform Administrative Requirements
  - Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards - 2 CFR 200
- Maximum Per-Unit Subsidy Limits
  Due to the discontinuation of the Section 221(d)(3) mortgage insurance program, alternate maximum per-unit subsidy limits must be used for the HOME Program. HUD is required to undertake rulemaking to establish new maximum per-unit subsidy limits for the HOME Program because it is no longer updating and publishing limits for the Section 221(d)(3) mortgage insurance program. Until a new rule can be published, HUD published a Notice establishing an interim policy that Field Office staff and Participating Jurisdictions (PJs) must follow directing PJs to use the Section 234-Condominium Housing basic mortgage limits, for elevator-type projects, as an alternative to the Section 221(d)(3) limits in order to determine the maximum amount of HOME funds a PJ may invest on a per-unit basis in HOME-assisted housing projects. This interim policy remains in effect until the effective date of the new final rule provisions, amending the existing provisions of 24 CFR 92.250(a).
  The Section 234 program insures blanket mortgages for the construction or substantial rehabilitation of multifamily projects to be sold upon completion as individual condominium units. Overtime, these limits issued by HUD have been identical to the Section 221(d)(3) limits. Consequently, substituting the Section 234 basic mortgage limits for the Section 221(d)(3) limits is consistent with the intent of NAHA and the implementing provisions of the HOME Final Rule.
  HUD’s Office of Multifamily Housing updates the Section 234 basic mortgage limits annually and publishes them in the Federal Register. The Office of Multifamily Housing also establishes high cost percentage exceptions (HCP) for specific areas. To ensure consistency with the provisions of section 212(e)(1) of NAHA and 24 CFR 92.250(a), the HOME maximum per-unit subsidy limit that HUD can approve for a PJ cannot exceed 240 percent of the Section 234 basic mortgage limit (i.e. 100 percent of the basic mortgage limit plus up to 140 percent in high cost areas). For a PJ whose HCP has been increased above the 240 percent, the CPD Division must cap the HOME per-unit subsidy limit at 240 percent of the Section 234 basic mortgage limit.
  PJs should contact the CPD Division in their local HUD Field Offices to obtain the maximum HOME per-unit subsidy limits that apply to their jurisdictions. PJs should not calculate their own HOME per-unit subsidy limits by using the High Cost Percentages and the Section 234 basic mortgage limits that are published in the Federal Register by HUD's Office of Multifamily Housing.
  The per-unit subsidy requirements are described in the HOME regulations at 24 CFR 92.250. The minimum HOME investment in rental housing or homeownership is $1,000 times the number of HOME-assisted units as described in the HOME regulations at 24 CFR 92.205(c).
  Historical
  HOME maximum per-unit subsidy limits are based on the Section 221(d)(3) limits for elevator-type projects. These limits are determined by HUD's Office of Multi-Family Housing Programs. Limits for certain "base cities" are issued. However, there is no comprehensive list of these limits for all jurisdictions.
  The HOME regulations authorizes the CPD Division in the HUD Field Office to increase a PJ's HOME per-unit subsidy limit when HUD's Office of Multi-Family Housing has increased the PJ's high cost percentage (HCP) above 210 percent of the basic Section 221(d)(3) mortgage limit. The CPD Division may authorize a PJ to use the most recent high cost percentage and corresponding Section 221(d)(3) mortgage limit, provided the resulting HOME per-unit subsidy limit does not exceed 240 percent of the basic Section 221(d)(3) mortgage limit (as required by the HOME statute). For a PJ whose HCP has been increased above 240 percent, the CPD Division must cap the HOME per-unit subsidy limit at 240 percent of the Section 221(d)(3) basic mortgage limit.
  The per-unit subsidy requirements are described in the HOME regulations at 24 CFR 92.250. The minimum HOME investment in rental housing or homeownership is $1,000 times the number of HOME-assisted units as described in the HOME regulations at 24 CFR 92.205(c).
  Resource Links
  - CPD Notice 15-003: Interim Policy on Maximum Per-Unit Subsidy Limits for the HOME Program
  - 2012 Section 221(d)(3) Limits for All HOME Projects (PDF)
- Notices
  Notices provide detailed guidance on a specific subject of the HOME Investment Partnerships Program (HOME). They explain how the program regulations should be interpreted or applied.
- Section 3
  On September 29, 2020, HUD published a final rule entitled "Enhancing and Streamlining the Implementation of Section 3 Requirements for Creating Economic Opportunities for Low- and Very Low-Income Persons and Eligible Businesses," (85 FR 61524) and a companion notice, titled "Section 3 Benchmarks for Creating Economic Opportunities for Low- and Very Low-Income Persons and Eligible Businesses," (85 FR 60907) that outlines the numeric goals for compliance (the “benchmark notice”) in the Federal Register.  Prior to the publication of the final rule and benchmark notice, HUD had been operating under the Section 3 interim rule (24 CFR Part 135) which was published in 1994. The final rule at 24 CFR part 75 became effective on November 30, 2020. 
  Section 3 contributes to the establishment of stronger, more sustainable communities by ensuring that employment and other economic opportunities generated by Federal financial assistance for housing and community development programs are, to the greatest extent feasible, directed toward low- and very low-income persons, particularly those who receive government assistance for housing.  Section 3 applies to training or employment arising in connection with HUD-funded housing rehabilitation, housing construction, or other public construction projects, and any contracting opportunities arising in connection with both public housing and other Section 3 projects.  These opportunities are, to the greatest extent feasible, required to be given to low- and very low-income persons and business concerns that provide economic opportunities to low- or very low-income persons.
  Laws and Regulations:
  - Statute: Section 3 of the Housing and Urban Development Act of 1968, as amended by the Housing and Community Development Act of 1992 (12 U.S.C § 1701u):
  - Final Rule: Enhancing and Streamlining the Implementation of Section 3 Requirements for Creating Economic Opportunities for Low- and Very Low-Income Persons and Eligible Businesses:
  - Benchmark Notice: Section 3 Benchmarks for Creating Economic Opportunities for Low- and Very Low-Income Persons and Eligible Businesses:
  CPD Guidance
  - CPD NOTICE: Section 3 of the Housing and Urban Development Act of 1968, as amended by the Housing and Community Development Act of 1992, final rule requirements for HOME and HTF projects.
  - CPD NOTICE: Section 3 of the Housing and Urban Development Act of 1968, as amended by the Housing and Community Development Act of 1992, final rule requirements for CDBG, CDBG-CV, CDBG-DR, CDBG-MIT, NSP, Section 108, and RHP projects.
- Training
  Building HOME Online Training - the audience for this training is HUD and participating jurisdiction (PJ) staff and partners working with HOME Investment Partnerships Program (HOME) funds including nonprofit and for profit developers, Community Housing Development Organizations (CHDOs), subrecipients implementing HOME programs, and property managers overseeing HOME funded properties. Please note, this training reflects the regulations in the 2013 HOME Rule and does not incorporate the changes from the 2025 HOME Final Rule.
HOME-American Rescue Plan (ARP) Program
The American Rescue Plan (ARP) provides $5 billion to assist individuals or households who are homeless, at risk of homelessness, and other vulnerable populations, by providing housing, rental assistance, supportive services, and non-congregate shelter, to reduce homelessness and increase housing stability across the country. These grant funds will be administered through HUD’s HOME Investment Partnerships Program (HOME).
Eligible Grantees
- The 651 State and local participating jurisdictions that qualified for an annual HOME Program allocation for FY 2021 are eligible to receive HOME-ARP grants. HOME-ARP funds will be allocated using the HOME Program formula. The HOME-ARP allocations were announced on April 8, 2021.
Eligible Populations
HOME-ARP funds must be used to primarily benefit individuals or families from the following qualifying populations: 
- Homeless, as defined in section 103(a) of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11302(a));
- At-risk of homelessness, as defined in section 401(1) of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11360(1));
- Fleeing, or attempting to flee, domestic violence, dating violence, sexual assault, stalking, or human trafficking, as defined by the Secretary;
- In other populations where providing supportive services or assistance under section 212(a) of the Act (42 U.S.C. 12742(a)) would prevent the family’s homelessness or would serve those with the greatest risk of housing instability;
- Veterans and families that include a veteran family member that meet one of the preceding criteria.
Eligible Activities
HOME-ARP funds can be used for four eligible activities.
- Production or Preservation of Affordable Housing
- Tenant-Based Rental Assistance (TBRA)
- Supportive Services, including services defined at 24 CFR 578.53(e) homeless prevention services, and housing counseling.
- Purchase and Development of Non-Congregate Shelter. These structures can remain in use as non-congregate shelter or can be converted to: 1) emergency shelter under the Emergency Solutions Grant program; 2) permanent housing under the Continuum of Care; or 3) affordable housing under the HOME Program.
Administrative and Operating Funding
HOME-ARP provides up to 15% of the allocation for administrative and planning costs of the participating jurisdiction and subrecipients administering all or a portion of the grant. In addition, HOME-ARP can provide up to 5% of its allocation for operating costs of Community Housing Development Organizations (CHDOs), other non-profit organizations, and homeless providers. Additional HOME-ARP funding is available to these organizations for capacity building activities.
If you are a Participating Jurisdiction and need assistance, please contact homearp@hud.gov for further assistance.
- FAQs (coming soon)
  HUD’s Office of Affordable Housing Programs (OAHP) conducted a webinar on IDIS for HOME-ARP Rental and Rental Operating on March 15, 2023.
  This webinar familiarizes HOME Participating Jurisdictions (PJs) and other program partners (CoCs, homeless service providers, local housing providers, and public housing agencies) with instructions and requirements for setting up, funding, drawing funds for, and completing HOME-ARP Rental and Rental Operating activities in HUD’s Integrated Disbursement and Information System (IDIS).
  This webinar will cover:
  - How to
  - Requirements
  - How to
  Related Materials and Resources
Housing Trust Fund (HTF)
The Housing Trust Fund (HTF) provides grants to states to produce and preserve affordable housing for extremely low- and very low-income households. States and state-designated entities are eligible grantees for the HTF. HUD allocates HTF funds by formula annually. A State must use at least 80 percent of each annual grant for rental housing; up to 10 percent for homeownership; and up to 10 percent for the grantee's reasonable administrative and planning costs. HTF funds may be used for the production or preservation of affordable housing through the acquisition, new construction, reconstruction, and/or rehabilitation of non-luxury housing with suitable amenities. All HTF-assisted units will be required to have a minimum affordability period of 30 years.
- Fact Sheet
- Limits and Allocations
Resources
- HTF Program Resources
  - News and Announcements
- Reports
- FAQs (coming soon)
  All Participating Jurisdictions (PJs) must contribute or match no less than 25 cents for each dollar of HOME funds spent on affordable housing. As PJs draw funds from HOME Investment Trust Funds, they incur a match liability, which must be satisfied by the end of each federal fiscal year. The matching contribution adds to the resources available for HOME-assisted or HOME-eligible projects and must come in the form of a permanent contribution to affordable housing. Generally, investments from state or local governments or the private sector qualify as matching contributions, whereas federal funds (such as CDBG) do not qualify. Eligible sources of a match for HOME funds include: cash; donated construction materials or volunteer labor; value of donated land or real property; value of foregone interest, taxes, fees, or charges levied by public or private entities; investments in on-or offsite improvements; proceeds from bond financing; the cost of supportive services provided to families living in HOME units; and the cost of homebuyer counseling to families purchasing HOME-assisted units.
  The HOME statute provides for a reduction of the matching contribution requirement under three conditions: 1) fiscal distress; 2) severe fiscal distress; and 3) for Presidentially-declared major disasters covered under the Stafford Act.
  For more information on Match requirements, see 24 CFR 92.218.
  - 24 CFR 92.218 - Amount of matching contribution
  - 24 CFR 92.219 - Recognition of matching contribution
  - 24 CFR 92.220 - Form of matching contribution
  - 24 CFR 92.221 - Match credit
  - 24 CFR 92.222 - Reduction of matching contribution requirement
  FY 2024 HOME Match Reductions
  This list includes match reductions granted for FY 2024 due to fiscal distress, severe fiscal distress, and Presidential disaster declarations. For those PJs with fiscal distress and Presidential disaster match reductions, the PJ may take the higher match reduction for the current fiscal year.
  Note: Since match reductions due to major Presidential disaster declarations are requested by PJs and granted by field offices at any time during the fiscal year, this list will be updated as needed.
  - Local Jurisdictions
    - When a local jurisdiction meets one of the distress criteria, it is determined to be in fiscal distress and receives a 50 percent reduction of match. If a local jurisdiction satisfies both distress criteria, it is determined to be in severe fiscal distress and receives a 100 percent reduction of match.
      FY 2024 Calculations
      FY 2024 individual poverty rate and per capita income (PCI) income were based on data obtained from the ACS 2017-2021 5-Year Estimates from Census. These were the latest data available at the time.
      For a jurisdiction to qualify as distressed based on the poverty criterion, its percentage of persons in poverty must have been at least 16.17 percent, which is 125 percent of the average national rate for persons in poverty of 12.94 percent.
      For a jurisdiction to qualify as distressed based on the PCI criterion, its average PCI must have been less than $28,051 which is 75 percent of the average PCI of $37,401.
  - State Jurisdictions
    - For a state to qualify under the personal income growth rate criterion, the state's rate must be less than 75 percent of the average national personal income growth rate during the most recent four quarters.
      FY 2024 Calculations
      The FY 2024 personal growth rate was based on data received from the beginning of the first quarter of 2023 to the end of the first quarter of 2024. These were the latest data available at the time.
  For a state to qualify as distressed based on the personal income growth rate, the state per capita income growth rate must have been less than 3.58 percent which is 75 percent of the average national personal income growth rate of 4.78 percent.
- Laws and Regulations
  Laws
  - Title I of the Housing and Economic Recovery Act of 2008, Section 1131 (Public Law 110-289)
  Regulations
- Notices
  Notices provide detailed guidance on a specific subject of the Housing Trust Fund (HTF) They explain how the program regulations should be interpreted or applied.

Affordable Housing Programs

I Want To Review

Overview

HOME Final Rule

I Want To Review

HOME Resources

FY 2025 HOME Consortia

Guidance and Tools

Video and Training Materials

Resources

FY 2024 HOME Match Reductions

Laws

Appropriations Law

Regulations and Rules

Uniform Administrative Requirements

Historical

Resource Links

Laws and Regulations:

CPD Guidance

Eligible Grantees

Eligible Populations

Eligible Activities

Administrative and Operating Funding

Related Materials and Resources

Resources

FY 2024 HOME Match Reductions

Laws

Regulations