The Home Investment Partnerships Program (HOME) is a federal initiative designed to assist states and localities in creating and maintaining affordable housing for low- and very low-income individuals and families. Administered by the U.S. Department of Housing and Urban Development (HUD), the program provides formula grants to participating jurisdictions (PJs), which include states, metropolitan cities, urban counties, and consortia of local governments. (hud.gov)
Program Overview
Established by the National Affordable Housing Act of 1990, the HOME program aims to strengthen public-private partnerships and increase the supply of affordable housing. The program offers flexibility in its funding, allowing PJs to tailor their strategies to meet local housing needs. (hud.gov)
Eligible Activities
HOME funds can be utilized for a variety of housing-related activities, including:
- Acquisition and Rehabilitation: Purchasing and renovating existing housing units to make them suitable for low-income residents.
- New Construction: Building new affordable housing units to expand the housing supply.
- Homebuyer Assistance: Providing down payment and closing cost assistance to eligible homebuyers.
- Tenant-Based Rental Assistance: Offering rental subsidies to help low-income individuals afford housing in the private market.
- States and Local Governments: Cities, counties, and consortia that do not receive direct HUD funding.
- Nonprofit Organizations: Community Housing Development Organizations (CHDOs) certified by the PJ.
- Developers: Both for-profit and nonprofit developers can apply, provided they meet specific criteria set by the PJ.
- Rental Housing: Development or rehabilitation of rental units for low-income tenants.
- Homeownership: Assistance for homebuyers, including down payment and closing cost assistance.
- Tenant-Based Rental Assistance: Providing rental subsidies to eligible individuals.
- Identify the Participating Jurisdiction (PJ): Determine which PJ administers HOME funds in your area. This could be a state agency, city, or county.
- Review the Notice of Funding Availability (NOFA): PJs issue NOFAs detailing available funding, application deadlines, and specific requirements.
- Prepare Application Materials: Gather necessary documents, including project proposals, budgets, and evidence of eligibility.
- Submit Application: Follow the PJ’s submission guidelines, ensuring all materials are complete and submitted by the deadline.
- Per-Unit Subsidy Limits: Maximum allowable subsidy per unit, which may differ based on project type and location.
- Affordability Periods: Minimum periods during which the housing must remain affordable to low-income households.
- Match Requirements: Some PJs require applicants to provide matching funds from non-federal sources.
- Program Purpose: To increase the supply of affordable housing for low- and very low-income households.
- Eligible Activities: Acquisition, rehabilitation, new construction, homebuyer assistance, and tenant-based rental assistance.
- Income Limits: At least 90% of rental units funded by HOME must be affordable to households earning at or below 60% of the area median income.
- Recent Updates: HUD finalized updates to the HOME program regulations in January 2025 to streamline requirements and align with other federal housing programs.
- U.S. Department of Housing and Urban Development (HUD), 2024. Home Investment Partnerships Program
- California Department of Housing and Community Development (HCD), 2024. HOME Investment Partnerships Program
- Pennsylvania Department of Community & Economic Development, 2024. HOME Investment Partnerships Program
- National Council of State Housing Agencies (NCSHA), 2025. 2025 Rule Updating, Streamlining HOME Investment Partnerships Program
- U.S. Department of Housing and Urban Development (HUD), 2025. HOME Investment Partnerships Program Updates and Effective Dates
- 2025 Rule Updating, Streamlining HOME Investment Partnerships Program — NCSHA
- HOME Investment Partnerships Program Reauthorization and Improvement Act — NCSHA
These activities must benefit households earning at or below 80% of the area median income (AMI), with at least 90% of rental units funded by HOME being affordable to households earning at or below 60% of AMI. (hud.gov)
Eligibility Criteria
Eligibility for HOME funding varies depending on the applicant’s role and location:
Eligible Applicants
Eligible Activities
Specific eligibility requirements, including income limits and project criteria, are determined by each PJ and may vary.
Application Process
Applying for HOME funding involves several key steps:
For example, the California Department of Housing and Community Development (HCD) provides detailed application instructions and deadlines on their website. (hcd.ca.gov)
Funding Limits and Requirements
Funding limits and requirements are set by each PJ and can vary:
For instance, the Pennsylvania Department of Community & Economic Development specifies that applicants must demonstrate matching contributions equal to 25% or greater for all HOME rental housing projects. (dced.pa.gov)
Recent Updates and Considerations
In January 2025, HUD finalized updates to the HOME program regulations, aiming to streamline requirements and align them with other federal housing programs. These changes are effective for projects committing HOME funds 30 days after publication in the Federal Register. (ncsha.org)
Conclusion
The HOME Investment Partnerships Program plays a crucial role in supporting affordable housing initiatives across the United States. By understanding the program’s structure, eligibility criteria, and application process, stakeholders can effectively navigate the system to secure funding for housing projects that benefit low- and very low-income communities.