Date Published: January 2014
Yes. HOME funds may be used for HOPE VI-funded public housing units developed under section 24 of the 1937 Act, provided there is no Capital Fund assistance used. Units developed with both HOME and HOPE VI funds may receive Operating Funds under section 9 of the 1937 Act. These units may receive Capital Funds for rehabilitation or modernization only if the 20-year period of affordability required by the HOME regulations has expired. HOME rent limits apply. [Note, this exception is clarified at §92.213(b).]
For example, consider a HOME-assisted rental project with 100 units of housing that involves acquisition and rehabilitation. The entire project can be funded with HOME and HOPE VI and all 100 units can be restricted by both programs (i.e., all the units are combined HOME/HOPE VI). However, no Capital Funds [under section 9(d)] may be provided in the development of the HOME-assisted units. After the 20-year HOME period of affordability has expired, Capital Funds may be invested for modernization or rehabilitation.