HOME Investment Partnerships Program
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The HOME Investment Partnerships Program (HOME) is a type of United States
The program is commonly referred to as the Home Investment or Home Partnership Program, and is often operating in conjunction with other housing and other urban development programs, such as the
Benefits provided
The government designed and implemented the HOME program to increase the amount of affordable housing for U.S citizens, especially those below the national and state poverty guidelines. The program has four main objectives:[1]
- Expand the supply of decent and affordable housing in the U.S.
- Strength the ability of state and local governmentsto design and implement strategies for achieving adequate supplies of decent, affordable housing
- Provide financial and technical assistance to state and local governments to develop affordable low-income housing
- Extend and strengthen partnerships among all levels of government (local and federal) and the private sector (both for-profit and non-profitorganizations) in the production and operation of affordable housing
HOME funds can enable a broad range of eligible activities that provide affordable housing. Nevertheless, HUD specifies eligible activities that all governments can perform to achieve program objectives:[2]
- Home purchase or rehabilitation financing assistance – In this type of activity, the HOME program may provide a down payment for the purchase of a housing unit to a financial institution, thereby reducing the monthly mortgage payment of the loan balance for a low-income family that otherwise could not afford the monthly payment. The down payment can help fund new housing or the rehabilitation of a family's existing housing.[2]
- Building or rehabilitation of housing for rent or ownership – In this type of activity, HOME funds may fund the building of housing units that the government provides to low-income families. The families either pay a monthly rent or may purchase the housing unit for an affordable price.[2]
- Site acquisition or improvement – In this type of activity, HOME funds purchase property that is later developed as affordable housing. This activity also covers the improvement and rehabilitation of current affordable housing.[2]
- Community Housing Development Organizations (CHDOs) – In this type of activity, governments provide funds to impoverished or low-income families, including building housing projects similar to public housing projects, housing for the homeless, and developing affordable housing communities, among others.[2]
Among these eligible activities, HUD specifies that governments can use funds to carry out "...other reasonable and necessary expenses related to the development of non-luxury housing."[2]
The final
Administration
The program is conducted by non-federal US governmental jurisdictions, such as states, cities, urban counties, and so forth, that receive an allocation of
If for example a state plans to use $1 million of HOME funds during the year, HUD provides $750,000 (75%) and the State must provide $250,000 (25%) for the program to achieve the $1 million goal. This
In addition to the matching requirement, HUD has earmarking requirements that governments must follow. This compliance requirement obliges state and local governments to set aside 15% of program funds awarded for providing to CHDOs (see above) and sets a limit equal to 10% of program funds awarded for administration and planning expenses (e.g., recipients must use not less than 90% of total funds for actual assistance, including the 15% for CHDOs).[1][2]
See also
References
- ^ a b c d HOME Investment Partnerships Program (CFDA 14.239); OMB Circular A-133 Compliance Supplement Archived 2009-06-21 at the Wayback Machine; Part 4: Agency Program Requirements: Department of Housing and Urban Development, pg. 4-14.239-1
- ^ a b c d e f g h i j k l HOME Investment Partnerships Program Archived 2011-11-24 at the Wayback Machine, Homes and Communities: Community Planning and Development, US Department of Housing and Urban Development