What Is HOME?

Other Federal Requirements

HOME-assisted projects and programs are also subject to a variety of Federal requirements concerning site and neighborhood standards, equal opportunity and fair housing, affirmative marketing, environmental review, displacement, relocation and replacement housing, labor standards, lead-based paint and other issues.

Site and Neighborhood Standards

All HOME-assisted activities must promote greater choice of housing opportunities and facilitate and further full compliance with the Civil Rights Act of 1964, the Fair Housing Act and any related Executive Orders and HUD regulations.

HOME-assisted new construction must comply with specific site and neighborhood standards including the following:

the site must be adequate in size and streets and utilities must be available; and
the site must not be located in an area of minority concentration unless sufficient comparable housing opportunities exist for minority families outside the area of concentration or the project is necessary to meet overriding housing needs.

In applying these standards, the overall impact of HUD-assisted housing on the availability of housing choices for low-income minority families both within and outside areas of concentration must be assessed and an appropriate balance for the jurisdiction must be determined in light of local conditions including the range of housing choices and the racial mix of the population.

Fair Housing and Affirmative Marketing

Each participating jurisdiction must certify that it will affirmatively further fair housing in connection with HOME-assisted activities (as well as other Federally-assisted housing). The participating jurisdiction must also adopt affirmative marketing procedures and requirements for HOME-assisted housing containing five or more units and must annually assess the effectiveness and success of the program. Any local government that receives HOME funds from a state must also adopt these procedures.

Environmental Review

The environmental effects of each HOME-assisted activity must be assessed in accordance with the National Environmental Policy Act of 1969 (NEPA). The participating jurisdiction is responsible for environmental review. States may assume that responsibility for their local HOME recipients or assign that responsibility to a local government in cases where state HOME funds are used.

Displacement, Relocation and Replacement Housing

Participating jurisdictions are required to insure that all necessary steps have been taken to minimize displacement resulting from HOME-assisted projects. Displaced households or businesses are entitled to assistance in accordance with the Uniform Relocation Act (URA) and must be advised of their rights. Residential tenants may be entitled to relocation benefits whether they are displaced temporarily or permanently. Although HOME funds may be used to pay relocation benefits, the cost of such benefits may make a project prohibitively expensive.

Replacement housing requirements are triggered when occupied or vacant, occupiable "low/moderate-income dwellings" are either converted to a use other than "low/moderate-income dwellings" or are demolished to make way for a HOME-assisted project. If either of these circumstances occur and there is a decrease in the number of such dwelling units, those units must be replaced.

Labor Standards (Davis-Bacon)

Every contract for the construction (including rehabilitation or new construction) of housing that includes twelve (12) or more HOME-assisted units must require the payment of prevailing wages pursuant to the Davis-Bacon Act. This requirement applies if HOME funds are used for any project costs.

When HOME funds are used to assist eligible homebuyers to acquire single-family units, the Davis-Bacon requirements apply only if there is a written agreement with the owner or developer to use HOME funds to assist the buyers and the construction contract covers twelve (12) or more HOME-assisted units.

Copyright 1997 - 1998 - 1999 - 2000
Affordable Housing and HOME
National Association of Housing and Redevelopment Officials (NAHRO)
630 Eye Street, NW
Washington, DC 20001-3736
Telephone: (202) 289-3500
Fax: (202) 289-4949