HOME Program Summary
The HOME Investment Partnerships Program provides formula grants to States and localities that communities use – often in partnership with local nonprofit groups – to fund a wide range of activities including building, buying, and/or rehabilitating affordable housing for rent or home-ownership or providing direct rental assistance to low-income people. HOME is the largest Federal block grant to state and local governments designed exclusively to create affordable housing for low-income households.
HOME funds are awarded annually as formula grants to participating jurisdictions (PJs).The program’s flexibility allows States and local governments to use HOME funds for grants, direct loans, loan guarantees or other forms of credit enhancements, or rental assistance or security deposits. The program was designed to reinforce several important values and principles of community development:
• HOME’s flexibility empowers people and communities to design and implement strategies tailored to their own needs and priorities.
• HOME’s emphasis on consolidated planning expands and strengthens partnerships among all levels of government and the private sector in the development of affordable housing.
• HOME’s technical assistance activities and set-aside for qualified community-based nonprofit housing groups builds the capacity of these partners.
• HOME’s requirement that participating jurisdictions match 25 cents of every dollar in program funds mobilizes community resources in support of affordable housing.
The eligibility of households for HOME assistance varies with the nature of the activity. For rental housing and rental assistance, at least 90% of benefiting families must have incomes that are no more than 60% of the HUD-adjusted median family income for the area. In rental projects with five or more assisted units, at least 20% of the units must be occupied by families with incomes that do not exceed 50% of the HUD-adjusted median. The incomes of households receiving HUD assistance must not exceed 80% of the area median. HOME income limits are published each year by HUD.