Topic Question
Broadband Infrastructure May HOME funds be used when developing (constructing or rehabilitating) housing with these funds and what costs related to broadband internet access are eligible?

 

Yes. Under § 92.206(a) in the HOME rule, HOME funds may be used for the actual costs of constructing or rehabilitating (development hard costs) single family or multifamily housing, including the costs to wire the property for broadband internet. The costs to make utility connections, including off-site connections from the property line to the adjacent street, are also eligible under HOME at § 92.206(a)(3)(ii). HUD includes internet connectivi...
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Broadband Infrastructure May HOME funds be used to provide a computer room in a multifamily rental project?

 

Yes. As part of new construction and rehabilitation costs of multifamily rental projects, the HOME rule at § 92.206(a)(4) states that HOME funds may be used for costs to construct or rehabilitate community facilities that are located within the same building as the housing, and which are for the use of the project residents. HOME funds cannot be used to pay for a computer room located in a separate building from the assisted housing. While HOME ...
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Broadband Infrastructure May HOME funds be used to make broadband internet connections to housing?

 

Yes. As part of a new construction or rehabilitation activity, the HOME rule at § 92.206(a)(3)(ii) states that HOME may pay for the development costs to make utility connections, including connections from the property line to the adjacent street. This includes broadband internet connections. However, HOME funds cannot be used for any off-site improvements, including running broadband internet cable or wires to the project site. Use of HOME fund...
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Broadband Infrastructure May HOME funds be used to provide computer equipment in a multifamily rental project?

 

No. HOME funds may not be used to pay for furniture or equipment for a computer room, even as part of a multifamily assisted rental property.

Broadband Infrastructure
Administration Can the PJ use HOME funds to pay for required homebuyer counseling?

 

While the HOME statute prohibits PJs from using HOME funds to administer a homebuyer counseling program, costs related to counseling a HOME-assisted homebuyer may be charged as eligible project-related soft costs in accordance with §92.206(d)(6), or administrative costs in accordance with §92.207(b). Housing counseling expenses may only be charged as project-related soft costs if the counseled homebuyer ultimately receives HOME assistance, and ...
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Administration Is a PJ allowed to use a for-profit or nonprofit lender to administer its HOME homebuyer assistance program if that lender provides both the HOME financing and other mortgage financing to HOME-assisted homebuyers?

 

Yes, a PJ may allow a nonprofit or for-profit lender to provide both HOME homebuyer assistance and other mortgage assistance to a homebuyer as long as the PJ has implemented the following safeguards now required by §92.254(e): The assistance is provided only as specified in a written agreement between the PJ and the lender. This agreement must specify the forms, amounts, and any conditions of homeownership assistance that the lender is authoriz...
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Administration The 2013 HOME Final Rule imposes a requirement that any homebuyer that receives HOME downpayment assistance or buys a HOME-assisted unit must have housing counseling. What type of homebuyer counseling does the HOME program require?

 

Effective August 23, 2013, any homebuyer that enters into a written agreement for HOME assistance (e.g., downpayment or closing cost assistance) or enters into a sales contract for the purchase of a HOME-assisted unit must receive housing counseling. See §92.254(a)(3). While the HOME regulation does not specify the type or duration of counseling that the homebuyer must receive, HUD recommends that participating jurisdictions (PJs) review and ado...
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Deadlines In a multi-unit homebuyer project, if some units do not sell within the 9-month deadline, and local zoning restrictions prevent the conversion to rental, is the PJ required to repay the entire HOME investment or just the HOME funds invested in the unsold units?

 

The PJ is required to repay only the HOME funds that were invested in the unsold units. In this situation, the PJ must amend the project in the Integrated Disbursement and Information System (IDIS) and in its local records to remove the unsold units from the project. The PJ must repay the costs associated with the unsold units based on the original cost allocation used for the project (e.g., actual cost per unit or pro-rata cost allocation). In I...
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Deadlines In what timeframe must HOME homebuyer housing units be sold to income-eligible homebuyers when the 2013 HOME Final Rule and the Consolidated and Further Continuing Appropriations Acts of 2012 and 2013 overlap?

 

The 2013 HOME Final Rule requires a ratified sales contract* with an eligible homebuyer for HOME-assisted housing within 9 months of the date of completion of construction or rehabilitation, while the Consolidated and Further Continuing Appropriations Acts of 2012 and 2013 establish a 6-month period for selling to an eligible homebuyer. HOME homebuyer projects funded with FY 2012 and FY 2013 HOME funds on or after the August 23, 2013 are subject ...
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Deadlines Under the 2013 HOME Final Rule, in what timeframe must HOME homebuyer housing units be sold to income-eligible homebuyers?

 

Effective August 23, 2013, the 2013 Rule requires a ratified sales contract* with an eligible homebuyer for HOME-assisted housing within 9 months of the date of completion of construction or rehabilitation. If a HOME-assisted homebuyer unit is not under a contract for sale within this timeframe, the unit must be converted to a rental housing unit and rented to an income-eligible tenant, or the HOME funds invested in the unit must be repaid. This ...
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Lease-Purchase Are Community Land Trusts permitted to charge monthly ground lease fees to HOME-assisted homeowners?

 

Yes. Generally, Community Land Trusts (CLTs) may charge ground lease fees to HOME-assisted homeowners. However, HOME funds may not be used to pay for these fees because the ongoing costs of homeownership are not eligible HOME program costs. Ownership in fee simple title of a dwelling with a ground or land lease of 50 years or longer from a CLT meets the definition of Homeownership in §92.2 of the HOME rule. CLTs commonly charge monthly ground le...
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Lease-Purchase Does the execution of a lease-purchase agreement meet the requirement to sell the HOME-assisted unit within 9 months?

 

Yes. Under the 2013 Final Rule requirements, if the participating jurisdiction (PJ) has an established lease-purchase program and an income-eligible tenant/homebuyer executes a lease-purchase agreement for a homebuyer unit within the 9-month deadline, the property is considered to be under contract and in compliance with this requirement. The agreement must comply with the HOME lease-purchase requirements specified at §92.254(a)(5)((ii)(A)(7). T...
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Eligible Applicants In an owner-occupied rehabilitation program, is it permissible for a participating jurisdiction (PJ) to provide HOME assistance to a homeowner who has a “living trust” or a life estate on the property?

 

Yes. In addition to traditional forms of ownership interest (defined under “homeownership” at §92.2), the 2013 Rule identifies four additional forms of ownership interest under which an owner can qualify for assistance for homeowner rehabilitation programs only, effective August 23, 2013. These include: Life estates Inherited property Inter vivos trust (i.e., a “living trust”) Beneficiary deeds For each of these new forms of ownership ...
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HOME and Public Housing Can HOME funds be used for HOPE VI-funded public housing units developed under section 24 of the 1937 Act?

 

Yes. HOME funds may be used for HOPE VI-funded public housing units developed under section 24 of the 1937 Act, provided there is no Capital Fund assistance used. Units developed with both HOME and HOPE VI funds may receive Operating Funds under section 9 of the 1937 Act. These units may receive Capital Funds for rehabilitation or modernization only if the 20-year period of affordability required by the HOME regulations has expired. HOME rent lim...
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HOME and Public Housing Can HOME funds be used in a project that is also receiving Capital Funds or Operating Funds?

 

Yes. HOME funds can be used in an affordable housing project that also contains public housing units assisted under section 9 of the 1937 Act provided that the units are separately designated and HOME funds are not used in the public housing units. No HOME funds can be used in a unit that receives public housing Capital and Operating Funds. Therefore, all development costs must be allocated to maintain the separation of units. This also means tha...
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HOME and Public Housing Can HOME funds be used for acquisition, rehabilitation, or new construction of housing that is or will become public housing under Section 9 of the 1937 Act?

 

No. HOME funds cannot be used in public housing units that receive Public Housing Capital and Operating Funds under section 9 of the 1937 Act. The HOME authorizing statute specifies that HOME cannot be used to provide assistance to units that receive funds authorized under section 9 of the 1937 Act (Public Housing Capital and Operating Funds). For example, a participating jurisdiction (PJ) cannot provide HOME funds to a local public housing agenc...
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Leases and Occupancy What are the new lease-up and occupancy deadlines and associated marketing requirements for HOME-assisted rental units and how will HUD implement them?

 

The 2013 Rule adds two specific deadlines for the initial lease-up/occupancy of HOME rental units: Within 6 months of the date of project completion, every HOME-assisted rental housing unit must be occupied by income-eligible tenants. If a unit is not leased up, the participating jurisdiction (PJ) must submit marketing information to HUD and, if appropriate, submit a new marketing plan. Within 18 months of the date of project completion, if any ...
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Tenant-Based Rental Assistance Section 92.252(d) requires the participating jurisdiction (PJ) to use the HUD Utility Schedule Model to determine a project’s annual utility allowance or otherwise determine a project’s utility allowance based upon the utilities used at the project. Is this requirement applicable to a PJ’s HOME Tenant-Based Rental Assistance (TBRA) Program?

 

No, the requirement to use HUD’s Utility Schedule Model is only applicable to HOME-assisted rental housing projects. However, PJs administering a TBRA program must establish a payment standard which represents the rent plus utility cost of moderately priced units that meet HUD Housing Quality Standards (HQS) in the jurisdiction. Therefore, when tenants pay their own utilities, the PJ must establish a utility allowance amount that is deducted fr...
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Tenant-Based Rental Assistance How can HOME funds be used to assist individuals or households who are at risk of losing their transitional or permanent housing?

 

HOME funds cannot be used to pay ongoing operating costs for transitional or permanent housing projects to enable these projects to continue their operation. However, HOME can be used to assist tenants who are at risk of losing their housing, where the participating jurisdiction (PJ) has identified using HOME Tenant-Based Rental Assistance (TBRA) assistance to meet this unmet housing need to be consistent with the priorities and criteria establis...
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Environmental Review What effect does the changing definition of commitment at 24 CFR 92.2 have on the practice of utilizing a conditional HOME Commitment prior to the completion of a full environmental review?

 

The 2013 HOME Final Rule revised the definition of commitment to ensure that participating jurisdictions (PJs) could account for the use of HOME program funds. When a PJ commits HOME funds, it must execute a binding written agreement, ensure that all necessary financing has been secured for the project, establish both the budget and schedule for the project, and complete the requisite assessment of market demand, underwriting and subsidy layering...
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Real Estate Market Analysis Do all projects require a market assessment, including small rental or homebuyer development projects?

 

The 2013 Rule requires that prior to committing HOME funds, the participating jurisdiction (PJ) must evaluate the feasibility of all rental or homebuyer development projects regardless of size (number of units) or activity type (i.e., acquisition only, acquisition/rehabilitation, rehabilitation, or new construction). One component of this evaluation is an assessment of the current market demand in the neighborhood in which the project will be loc...
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Subsidy Layering What are the HOME Program subsidy layering and underwriting requirements? Is underwriting required for both homebuyer and rental activities?

 

Participating jurisdictions (PJs) are required to undertake a subsidy layering and underwriting analysis of all development projects to which they provide HOME funds, rental and homeownership alike, with some exceptions described below. These specific requirements described below are in the 2013 Rule, and apply to projects with HOME funds committed on or after August 23, 2013. HUD also plans to issue additional guidance in this area. Subsidy laye...
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Deadlines What are the effective dates of the 2013 Rule changes related to CHDOs?

 

For the most part, the amendments to the definition of CHDO (found at §92.2) and other amendments related to CHDOs at §92.300 became effective on August 23, 2013. There are only two changes related to CHDOs with delayed implementation dates: The change in the definition of commitment at §92.2 that no longer permits participating jurisdictions (PJs) to reserve HOME funds for projects that will be identified at a later date became effective on ...
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Set-Aside Funds Has the definition of developer of rental housing changed under the 2013 Rule?

 

Yes. Effective August 23, 2013, a CHDO that serves as a developer of rental housing must be in sole charge of all aspects of the development of the property, and must own the property during development and throughout the affordability period. Previously, a CHDO could develop a property that it did not own, under contract with the property owner. This is no longer permitted under the developer definition in 24 CFR 92.300.

Set-Aside Funds
Set-Aside Funds Can CHDO set-aside funds be used to provide downpayment assistance?

 

Yes. When a CHDO provides downpayment assistance to a buyer of a property that it developed with CHDO set-aside funds, it can use additional CHDO set-aside funds to provide downpayment assistance to that buyer. The 2013 Rule limits this assistance to no more than 10 percent of the total amount of HOME development funds. The 10 percent limitation only applies when additional CHDO set-aside funds are used to provide the homebuyer assistance and to ...
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Set-Aside Funds Can a PJ provide CHDO set-aside funds to a CHDO that has the capacity to own and manage rental housing, but does not have the capacity to develop a project?

 

Yes. The 2013 Rule codifies the definition of “owner” of rental housing to clarify that a CHDO may own and manage affordable housing in this way. The change to the definition of CHDO in 92.2 requires the PJ to determine and certify that the CHDO has the capacity to own and manage the rental housing. As an owner, a CHDO without development capacity can acquire an existing property that meets the HOME property standards (see §92.251) and then ...
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Set-Aside Funds What does the change from CHDO reservations to commitments mean to a participating jurisdiction (PJ)?

 

In the 2013 Rule, changes to the HOME regulations at §92.300(a)(1) require a PJ to commit CHDO set-aside funds to a specific project within 24 months of receiving its HOME allocation. The PJ must enter into a written agreement(s) with one or more CHDOs that the PJ certifies meets the definition a CHDO (as defined at §92.2) and has the capacity to undertake the proposed project in which a CHDO will own, develop, or sponsor an affordable housing ...
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Set-Aside Funds What types of activities qualify to use CHDO set-aside funds?

 

CHDO set-aside finds may be used for projects that are owned, developed, or sponsored by a nonprofit that qualifies as a CHDO as defined at 24 CFR §92.2. Previously, these roles were limited to development activities—that is, projects that involved acquisition, rehabilitation, and/or new construction of housing for sale or rent to low-income families. However, the 2013 HOME Final Rule amended the definitions of these roles and now nonprofits c...
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COVID-19/CARES Act During the CARES Act 120-day eviction moratorium period, can monthly rent and fees and other charges (except those related to nonpayment of rent) accrue and be charged to the tenant after the CARES Act moratorium ends?

 

Yes, unpaid monthly rent and fees and other charges (except fees and charges related to nonpayment of rent) may accrue during the 120-day period and be charged to the tenant after the Coronavirus Aid, Relief, and Economic Security (CARES) Act 120-day moratorium period ends on July 24, 2020.

COVID-19/CARES Act
COVID-19/CARES Act During the CARES Act 120-day eviction moratorium period, may owners evict tenants for lease violations that are not related to nonpayment of rent, fees, or charges?

 

Yes, the Coronavirus Aid, Relief, and Economic Security (CARES) Act moratorium does not apply to evictions based on violations of permitted lease terms other than nonpayment of rent or other fees, penalties, and charges. However, the HOME regulations at 24 CFR 92.253 still apply to HOME-assisted units and Tenant-Based Rental Assistance (TBRA) units. Participating Jurisdictions (PJs) should also review their state and local laws, as many are also ...
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COVID-19/CARES Act Does the CARES Act eviction moratorium apply to covered dwelling units in HOME-assisted projects and units occupied by recipients of TBRA?

 

Yes, the Coronavirus Aid, Relief, and Economic Security (CARES) Act eviction moratorium applies to HOME-assisted projects as well as dwelling units occupied by recipients of HOME Tenant-Based Rental Assistance (TBRA).

COVID-19/CARES Act
COVID-19/CARES Act Is HOME a "covered housing program" in the CARES Act (as defined in section 41411(a) of VAWA (34 USC 12491(a)))?

 

Yes, HOME is a covered housing program in the Coronavirus Aid, Relief, and Economic Security (CARES) Act as defined by Section 34 USC 12491(a)(3)(E) of the Violence Against Women Act (VAWA).

COVID-19/CARES Act
COVID-19/CARES Act During the CARES Act 120-day eviction moratorium period, can fees related to nonpayment of rent accumulate and be charged to the tenant after the moratorium?

 

No. Per Section 4024(b)(2) of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, fees, penalties, or charges in relation to nonpayment of rent cannot be charged. Therefore, there should be no charges, penalties, or fees assessed for nonpayment of rent during the 120-day period.

COVID-19/CARES Act
COVID-19/CARES Act Will HUD issue additional guidance on the use of HOME funds in response to the COVID-19 pandemic and application of the CARES Act?

 

HUD will continue to update guidance on the use of HOME funds and the Coronavirus Aid, Relief, and Economic Security (CARES) Act as needed.

COVID-19/CARES Act
COVID-19/CARES Act How should a PJ notify owners of the CARES Act eviction moratorium?

 

A Participating Jurisdiction (PJ) should provide written notification to owners of HOME-assisted projects (including single-family properties with rental units) and Tenant-Based Rental Assistance (TBRA) units regarding how the Coronavirus Aid, Relief, and Economic Security (CARES) Act eviction moratorium applies to HOME-assisted projects and TBRA units. In addition, PJs should direct project owners to provide tenants with information about their ...
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COVID-19/CARES Act Which HOME-assisted projects contain units that are covered by the CARES Act eviction moratorium?

 

The following HOME-assisted projects contain units that are covered by the Coronavirus Aid, Relief, and Economic Security (CARES) Act eviction moratorium: Rental projects that received HOME assistance that are currently within the period of affordability (POA) specified in the HOME written agreement, including POAs imposed by the HOME written agreement that are longer than the HOME minimum POA required at 24 CFR 92.252(e) Rental projects that ha...
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COVID-19/CARES Act How does the CARES Act eviction moratorium affect covered dwelling units in HOME-assisted projects or units with TBRA?

 

The Coronavirus Aid, Relief, and Economic Security (CARES) Act eviction moratorium affects covered dwelling units in HOME-assisted projects and units with Tenant-Based Rental Assistance (TBRA) as outlined below. For a period of 120 days, beginning on March 27, 2020 and continuing through July 24, 2020, an owner cannot: Make, or cause to be made, any filing with the court of jurisdiction to initiate an eviction (e.g., an unlawful detainer action,...
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COVID-19/CARES Act Does the CARES Act eviction moratorium apply to all the residential units in a HOME-assisted project?

 

For HOME-assisted projects, the Coronavirus Aid, Relief, and Economic Security (CARES) Act eviction moratorium applies to: HOME-assisted units in or on rental or homeownership properties that are currently within the period of affordability (POA) specified in the HOME written agreement, including POAs that are longer than the HOME minimum period required at 24 CFR 92.252(e) or 24 CFR 92.254(a)(4). HOME-assisted units are participating in the HOM...
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Housing Counseling What are the HUD programs on the list where housing counseling is funded under the HUD program?

 

The following HUD programs are those that include “housing counseling” as an eligible funding activity or project cost. Where “housing counseling,” as defined by this rule, is funded by the programs listed below, the housing counseling must be provided through an agency approved to participate in HUD’s Housing Counseling program and a HUD certified housing counselor. The Community Development Block Grant Program (42 U.S.C. 5301, et seq...
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Housing Counseling What are the HUD programs on the list where housing counseling is required by statute, regulation, Notice of Funding Availability, or otherwise required by HUD?

 

The following HUD programs are those where housing counseling is required by statute, regulation, Notice of Funding Availability, or otherwise required by HUD: Housing Counseling Program (12 U.S.C. 1701x);   Housing Choice Voucher Homeownership Option (42 U.S.C. 1437f(y));   HOME Investment Partnership – Homeownership only (42 U.S.C. 12701 et seq.);   Housing Trust Fund – Homeownership only (12 U.S.C. 4568(c));   FHA Sing...
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Housing Counseling The HOME Investment Partnerships Program (HOME) is listed in the certification rule as a “HUD Program where Housing Counseling is required by statute, regulation, Notice of Funding Availability, or otherwise required by HUD” and it is also listed in the certification rule as a “HUD Program where housing counseling is funded under the HUD program.” How is the HOME program affected by the Final Rule on housing counselor certification?

 

HOME as a HUD program where housing counseling is required by regulation: The HOME program regulations require that all homebuyers assisted with HOME funds must receive housing counseling. The housing counseling requirement applies to all HOME-assisted homebuyers, including homebuyers receiving HOME-funded direct homebuyer assistance (i.e., downpayment assistance) and homebuyers purchasing units developed with HOME funds. In all instances, rega...
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Income Determination What passbook savings rate should PJs be using when imputing income from assets above $5,000 for the HOME program?

 

When determining income eligibility for the HOME program, 24 CFR 5.609(b)(3) requires PJs to include in calculating annual income the greater of either: (1) actual income resulting from all net family assets; or (2) a percentage of the value of such assets based upon the current passbook savings rate as determined by HUD when a family has net assets in excess of $5,000.  The PJ has three options in setting the rate to be used as its passboo...
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Per Unit Maximum Subsidy Where can I find the 221(d)(3) limits for 2013?

 

Starting in 2013, Section 221(d)(3) program limits will no longer be calculated and published by HUD due to the elimination of the 221(d)(3) Mortgage Program. The HOME statute and the HOME regulation at 24 CFR 92.250(a) limit the amount of HOME funds that a participating jurisdiction (PJ) may invest in a HOME-assisted unit. The maximum HOME per-unit subsidy limit is set at the basic Section 221(d)(3)(ii) mortgage limit for elevator-type projects,...
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Property Standards The 2013 HOME Final Rule substantially revises property standards requirements for development projects. When do these requirements become effective, and how should the participating jurisdiction (PJ) approach implementation?

 

Pursuant to §92.3(b), the new property standards requirements (see §92.251) apply to projects to which funds are committed on or after January 24, 2015. HUD delayed the effective date of the property standards requirements in order to have time to issue additional guidance and provide technical assistance to PJs and to give PJs time to consider how to implement these changes in a thoughtful and effective manner. Initially, HUD plans to issue gu...
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Content current as of November 8, 2021.