Can HOME funds be used in a project that is also receiving Capital Funds or Operating Funds?

Date Published: January 2014

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Yes. HOME funds can be used in an affordable housing project that also contains public housing units assisted under section 9 of the 1937 Act provided that the units are separately designated and HOME funds are not used in the public housing units. No HOME funds can be used in a unit that receives public housing Capital and Operating Funds. Therefore, all development costs must be allocated to maintain the separation of units. This also means that the project must have fixed HOME units, and must have separate waiting lists and rent structures for the HOME and public housing units.

For example, in a 100-unit rental housing project funded with both HOME-assisted units and public housing units under section 9 of the 1937 Act, the PJ can designate 10 units as HOME-assisted and the remaining units as public housing. HOME can pay only for the costs of developing the 10 HOME-assisted units. The units must be designated as fixed units. HOME rents limits apply to the HOME units. Public housing rents apply to the remaining units. A separate waiting list must be maintained for the two types of unit.

Tags: HOME Rental Housing Development - HOME and Public Housing