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Under the 2013 HOME Final Rule, in what timeframe must HOME homebuyer housing units be sold to income-eligible homebuyers?

Date Published: November 2013

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A

Effective August 23, 2013, the 2013 Rule requires a ratified sales contract* with an eligible homebuyer for HOME-assisted housing within 9 months of the date of completion of construction or rehabilitation. If a HOME-assisted homebuyer unit is not under a contract for sale within this timeframe, the unit must be converted to a rental housing unit and rented to an income-eligible tenant, or the HOME funds invested in the unit must be repaid. This requirement applies to all projects to which HOME funds are committed on or after the August 23, 2013 effective date. It does not affect units that are already built or to which HOME funds were committed before the effective date. When committing FY 2012 and FY 2013 funds, participating jurisdictions (PJs) must be cognizant of possible overlapping requirements related to the Consolidated and Further Continuing Appropriations Acts of 2012 and 2103.

Once converted to rental, the unit is subject to the HOME rental housing requirements in accordance with §92.252.

*If the PJ has an established lease-purchase program and executes a lease-purchase agreement with an income-eligible tenant/homebuyer within the 9-month deadline, the property is considered to be under contract and in compliance with this requirement.


Tags: HOME Homebuyer Assistance - Deadlines

FAQ ID:

2298