What Is HOME?

Becoming a HOME Player

Participating jurisdictions (PJs) are the primary recipients of HOME funds. However, a variety of state and local agencies and organizations, including Local Housing Authorities (LHAs) may, and frequently do undertake or participate in HOME-assisted projects and programs. Planning how HOME funds will be used in a state or local PJ and implementing those plans should be a collaborative process. Partnerships are critical to the effective use of HOME funds.

Before considering the use of HOME funds, LHAs or other agencies should--

know what activities may be assisted with HOME funds and the requirements to which they are subject;
understand the priorities established by the PJ for the use of HOME funds (income groups to be assisted, types of housing to be encouraged);
play a role in shaping those priorities through participation in developing the Consolidated Plan;
determine which of their own goals are consistent with those of the PJ and/or can be achieved using HOME funds; and
clarify how the LHA or other agency can assist the PJ in achieving its goals.

Defining and Achieving Shared Goals

Before even considering the possibility of using HOME funds, any agency must know what is possible and permissible under the HOME regulations. For example, Public Housing modernization is not an eligible use of HOME funds. Thus, even if an LHA and a local PJ agree that funds are needed for the modernization of a public housing development, they should not view HOME as a potential vehicle for meeting that need.

On the other hand, an LHA may wish to provide homeownership opportunities for tenants of public or assisted housing. The jurisdiction may also wish to increase homeownership opportunities generally or in a particular geographic area. Thus, the two entities may jointly develop a HOME-funded homeownership program to achieve a shared goal.

Any organization considering the effective use of HOME funds must know what it can and wishes to achieve with HOME. For example, an LHA may want to undertake any of the following activities using HOME funds:

reduce the waiting list for public and assisted housing through rehabilitation, new construction or the use of HOME-funded tenant-based rental assistance;
resolve issues arising from the presence of mixed populations in elderly developments by developing special needs housing; and
complement ongoing LHA activities such as public housing modernization, by undertaking rehabilitation and site improvements in adjacent neighborhoods.

The jurisdiction's goals for using HOME should be clearly stated in the Consolidated Plan. Ideally, a variety of state and local agencies will have had a substantive role in shaping those goals through the required planning process that leads to the development of the Consolidated Plan.

Planning--Getting A Handle On The Process

The National Affordable Housing Act of 1990, which created HOME, mandated a HUD-approved planning document for all jurisdictions that receive HOME funds. Beginning in FY 1995, all jurisdictions--states, cities, counties and consortia--were required to have an approved Consolidated Plan in order to receive HOME funds as well as Community Development Block Grant (CDBG), Emergency Shelter Grant (ESG) and Housing Opportunities for Persons With AIDS (HOPWA) funds. The Consolidated Plan should result from a comprehensive, inclusive planning process on either the state or local level.

Local jurisdictions must consult with the local housing authority concerning public housing needs and Comprehensive Grant funded activities to ensure that these endeavors are fully coordinated with those covered by the Consolidated Plan. They are required to provide information to housing agencies about activities related to public and assisted housing developments and surrounding communities. In conjunction with LHAs, local jurisdictions must encourage participation by public and assisted housing residents in the process of developing and implementing the Consolidated Plan.

Although states are not subject to the same requirements regarding consultation with local housing authorities and public housing residents, the process of developing a state Consolidated Plan should also be inclusive. All jurisdictions must hold at least two public hearings per year related to the development of the Plan and must provide a 30-day comment period after a draft plan has been made available.

Because of the mandated linkages between housing authority activities and those administered by the jurisdiction, the establishment of the Consolidated Planning process offers an important opportunity for local housing authorities to impact the determination of priority needs and how resources--especially HOME--will be used in their communities. However, these mandates do not apply to the many local housing authorities located in smaller communities not required to submit a Consolidated Plan. In order for these agencies to impact priorities for spending millions in Federal housing and community development funds, they must actively track the planning process in their state. In any case, most local housing authorities should aggressively involve themselves in the process as it has been established in their community or state.

Consolidated Plan Requirements

1.	Housing and Homeless Needs Assessment
	Estimated housing and social service needs for the next 5 years distinguished by income groups and types of need.
2.	Housing Market Analysis
	Supply, demand, conditions, and cost; units available to those with disabilities, public and assisted housing, homeless facilities and any racial or ethnic concentrations.
3.	Strategies, Priority Needs and Objectives
	Priority housing and homeless needs, basis for relative priorities; Obstacles, specific, quantifiable objectives, target dates and resource allocation, both geographically and by activity for each need. Expected resources, leverage and matching requirements. Activities to enhance public private housing and service coordination and encourage public housing residents' involvement in management.
4.	Action Plan
	Description of activities designed to address priority needs in the next year, specifically including emergency shelter, transitional housing, maintaining affordable housing, improving public housing and fostering resident initiatives.

Identifying the Players and What They Have to Offer

For a Local Housing Authority or other agency considering how they can use HOME to benefit their community, the most significant actor is the participating jurisdiction, the state or the unit of local government that is the official recipient of HOME funds. All PJs must designate a department or agency to administer the program. States typically designate either their housing and community development departments or their state housing finance agencies for this purpose. In most local participating jurisdictions, the community development department is responsible for administering HOME. The local community development department may also be responsible for developing the Consolidated Plan, or may do so in conjunction with the planning department.

When the housing authority or other agency is located in a jurisdiction that is part of a HOME consortium, the situation is more complicated but the same rules apply. The consortium must submit a Consolidated Plan and there must be a designated lead agency primarily responsible for seeing that the goals of the program are carried out. The HUD Field Office can provide information on consortia and lead agencies. LHAs should be aware that the HUD Office of Community Planning and Development (CPD) is responsible for HOME and Consolidated Planning and the CPD field staff is not always housed in the same location as the Public and Indian Housing staff.

Another group of significant actors are CHDOs--Community Housing Development Organizations. All participating jurisdictions must set aside at least 15 percent of their HOME allocation for use by these nonprofit organizations. Local Housing Authorities should be particularly aware of the existence and activities of CHDOs or other nonprofits utilizing HOME funds. Local housing authorities have been involved in establishing CHDOs and some are currently providing consulting services as well as long-term housing management services to CHDOs and other nonprofits that have developed HOME-assisted projects.

The Consolidated Plan process offers LHAs and other agencies the opportunity for a more substantial role in establishing priorities and planning for the use of HOME funds and potentially in implementing those plans. In order to fulfill that role, each agency must critically examine the skills and expertise it brings to the table.

These skills and expertise may include the following:

experience in working with the targeted income groups and special needs populations in both occupancy and management;
experience administering tenant-based rental assistance;
technical abilities including bonding authority or ability to hold mortgages; and
compatibility of HOME-funded activities with other LHA activities.

From the perspective of the participating jurisdiction, given the monitoring and affordability requirements for HOME-assisted housing, the most significant advantage enjoyed by local housing authorities may be their long-term involvement in providing low- and moderate-income housing. Secondarily, unlike many other potential development partners, LHAs are able to assure the participating jurisdiction that any financial return derived from a project will be devoted to further affordable housing efforts.

Participation in HOME-assisted activities may present LHAs and other agencies with a variety of important opportunities including:

achieving previously unattainable goals for creating affordable housing;
expanding their own activities beyond public and assisted housing;
establishing or strengthening relationships with other state and/or local participants in affordable housing efforts; and
diversifying income by earning development, management or consultant fees.

There are many ways in which Local Housing Authorities and other agencies can participate cooperatively with PJs to implement HOME-assisted activities and achieve commonly established goals. Each agency must determine how its expertise can best be developed and used to realize those goals and identify opportunities to effectively use HOME to meet the affordable housing needs of the community.

Becoming A HOME Player: Advice from Successful LHAs

Have your own house in order: make sure your agency's current programs are well run before seeking out HOME funds.
Know what you have to offer: be realistic about the strengths and weaknesses of your agency.
Do your homework: understand the HOME program and learn what is planned and what is needed.
Establish or strengthen organizational relationships: take any necessary steps to ensure solid working relationships with the appropriate state or local agencies responsible for administering HOME.
Start small: begin with limited involvement in HOME activities, especially if the agency has not had extensive development experience or does not have established relationships with the other HOME actors, then expand the agency's role based on performance.
Think creatively about what your agency can contribute: most LHAs are experienced in administering tenant-based rental assistance, there may be even more valuable services the agency can offer such as housing management or development services for a CHDO.

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