What Is HOME?

Where Did It Come From? Where Is It Going?

HOME: Origins

The HOME Investment Partnerships Program was authorized by the National Affordable Housing Act of 1990. This legislation made significant changes in many housing programs, most arising from the work of the National Housing Task Force. The National Housing Task Force was convened in September 1987 and issued its report, "A Decent Place to Live," in March 1988. A central recommendation of the report was the creation of a flexible housing production program, then called the "Housing Opportunity Program" (HOP). This proposed program was the basis for the HOME Investment Partnerships program.

The Task Force called for annual funding of $3 billion through at least 1999 and predicted that, if used effectively, the program could add 150,000 to 200,000 units to the affordable housing stock each year. The Task Force report also anticipated the elimination of several existing programs including Rental Rehabilitation, HoDAG, Section 8 Moderate Rehabilitation, Section 312 Rehabilitation Loan Program and the Section 235 program.

Following considerable consultation and debate between the Congress, the Administration, public interest groups and others, the HOME program was enacted as a part of the Cranston Gonzalez National Affordable Housing Act (NAHA), in November 1990.

As initially enacted, the program was difficult to use in several ways. There were complex rules concerning HOME-funded new construction, a burdensome match requirement and no provision for administrative expenses. These difficulties and others were corrected by the Housing and Community Development Act of 1992 and a series of regulatory changes. Indeed, there have been so many regulatory changes since HOME was enacted that they may have created some confusion and led to reduced utilization of the funds. However, all of the revisions have simplified the program and made it easier to use.

HOME Results and Accomplishments

A total of nearly $14 billion has been appropriated for the HOME program since Fiscal Year 1992. Of that amount, more than $11 billion has been committed and $9.5 billion has been disbursed.. *

Approximately 400,000 units have been created or assisted with HOME funds. More than 80 percent of all HOME-assisted rental units are occupied by families with incomes at or below 50 percent of median.

To date, most of the funds have been used for rehabilitation, followed by acquisition, new construction and tenant-based rental assistance. The amount of HOME funds spent per unit ranges from just under $8,000 for acquisition to just over $21,000 for new construction.

Copyright 1998 - 1999 - 2000 - 2001
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