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In a multi-unit homebuyer project, if some units do not sell within the 9-month deadline, and local zoning restrictions prevent the conversion to rental, is the PJ required to repay the entire HOME investment or just the HOME funds invested in the unsold units?

Date Published: November 2013

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A

The PJ is required to repay only the HOME funds that were invested in the unsold units. In this situation, the PJ must amend the project in the Integrated Disbursement and Information System (IDIS) and in its local records to remove the unsold units from the project. The PJ must repay the costs associated with the unsold units based on the original cost allocation used for the project (e.g., actual cost per unit or pro-rata cost allocation). In IDIS, the repaid funds are used to reduce the draws and activity funding associated with the unsold units. Instructions for repaying funds can be found in HOME FACTS Vol.1, No.1.


Tags: HOME Homebuyer Assistance - Deadlines

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FAQ ID:

2300