What Is HOME?

Uses, Users and Restrictions

The HOME Investment Partnership program is an important source of funding for affordable housing. Local housing authorities and other local agencies should carefully consider how the HOME program can be utilized to meet the housing needs of low- and moderate-income households. Nearly $14 billion has been allocated to state and local governments since funds were first appropriated for the program in Fiscal Year 1992.

In determining whether HOME is an appropriate resource and how best to utilize HOME in your community, you must be aware of the basic regulations governing the program. This section outlines the "basics" of the HOME program--how the funds can be used, how they are distributed and for what purpose. It also describes the requirements and responsibilities associated with the use of HOME funds.

How Can HOME Be Used?

HOME funds can be used to--

acquire housing units
build new rental or owner occupied housing (including transitional and SRO)
rehabilitate rental or owner-occupied housing
provide assistance to eligible homebuyers (including down payment and closing cost assistance, direct loans or loan guarantees)
provide tenant-based rental assistance
establish a loan guarantee fund
perform demolition
provide necessary on-site and off-site improvements for HOME-assisted projects
pay relocation costs
pay administrative expenses (up to 10 percent of allocation)
pay operating costs for Community Housing Development Organizations (CHDOs) up to five percent of the Participating Jurisdiction's annual allocation

HOME funds can be used to create or assist eligible units in a mixed income or mixed use project.

HOME funds cannot be used to--

operate or modernize public or assisted housing
provide rental assistance for certain special mandated purposes under Section 8 (including replacement of public housing that is demolished or disposed of and preventing displacement from rental rehab units)
assist properties eligible for prepayment
provide project reserve accounts (HOME-funded projects can have such accounts, but HOME cannot be the source of those funds)
provide matching contributions required under any other federal program

Copyright 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