Home Investment Partnerships Program
Program Funding
Annual program obligations reported to SAM.gov.
Program Objective
To expand the supply of affordable housing, particularly rental housing, for low and very low income Americans; to strengthen the abilities of State and local governments to design and implement strategies for achieving adequate supplies of decent, affordable housing; and to extend and strengthen partnerships among all levels of government and the private sector, including for-profit and nonprofit organizations, in the production and operation of affordable housing.
Eligibility
Eligible Applicants
- U.S. State Government
- U.S. Territory Government
- Municipality/Township Government
- County Government
States, cities, urban counties, and consortia (of contiguous units of general local governments with a binding agreement) are eligible to receive formula allocations; funds are also set aside for grants to Insular Areas.
Beneficiaries
- Homeowner
- Resident/Citizen of U.S. Territory
- Veteran (including dependents)
For rental housing, at least 90 percent of HOME funds must benefit low and very low income families at 60 percent of the area median income; the remaining ten percent must benefit families below 80 percent of the area median. Assistance to homeowners and homebuyers must be to families below 80 percent of the area median.
How to Apply
Award Procedure
The responsible HUD Field Office notifies grantees of the formula awards. HUD prepares the grant agreement for formula applicants.
Decision Timeline
- Approval: From 30 to 60 days
HUD will review for completeness and consistency with the purposes of the Act, within 45 days of receipt from a jurisdiction.
Program details & compliance
Description
Individuals can not apply for these funds; they are distributed by formula to states and local governments.
Mission Categories
Primary: Homebuying, Homeownership
Other categories:
Home ImprovementMultifamilyConstruction RehabilitationRural Housing
Use of Funds
Allowed Uses
For use by participating jurisdictions or Insular Areas for housing rehabilitation, tenant-based rental assistance, assistance to homebuyers, acquisition of housing and new construction of housing. Funding may also be used for other necessary and reasonable activities related to the development of non-luxury housing, such as site acquisition, site improvements, demolition and relocation. Ten percent of a participating jurisdiction's allocation may be used for administrative costs. Funds may not be used for public housing modernization, matching funds for other Federal programs, reserve accounts or operating subsidies for rental housing, Annual Contributions Contracts, or activities under the Low Income Housing Preservation Act except for priority purchasers. the American Rescue Plan Act of 2021 provides an additional $4.925 billion to be allocated by the HOME formula to meet the needs of those homeless or at risk of homelessness, the development of affordable housing, tenant based rental assistance, supportive services and acquisition and development of non-congregate shelter units. 15 percent of these funds may be used for administrative costs.
Restrictions
HOME grants must be used in accordance with 24 CFR part 92
Required Documentation
Recipients must certify they will meet program requirements and applicable federal requirements.
Matching Requirements
All Participating Jurisdictions (PJs) must contribute or match no less than 25 cents for each dollar of HOME funds spent on affordable housing. As PJs draw funds from HOME Investment Trust Funds, they incur a match liability, which must be satisfied by the end of each federal fiscal year. The matching contribution adds to the resources available for HOME-assisted or HOME-eligible projects, and must come in the form of a permanent contribution to affordable housing. Generally, investments from state or local governments or the private sector qualify as matching contributions, whereas federal funds (such as CDBG) do not qualify. Eligible sources of a match for HOME funds include: cash; donated construction materials or volunteer labor; value of donated land or real property; value of foregone interest, taxes, fees, or charges levied by public or private entities; investments in on-or offsite improvements; proceeds from bond financing; the cost of supportive services provided to families living in HOME units; and the cost of homebuyer counseling to families purchasing HOME-assisted units.
The HOME statute provides for a reduction of the matching contribution requirement under three conditions: 1) fiscal distress; 2) severe fiscal distress; and 3) for Presidentially-declared major disasters covered under the Stafford Act.
Reporting & Compliance
Applicable 2 CFR 200 Subparts
- Subpart B — General Provisions
- Subpart C — Pre-Federal Award Requirements
- Subpart D — Post-Federal Award Requirements
- Subpart E — Cost Principles
- Subpart F — Audit Requirements
Formula
HOME Investment Partnerships Program