Date Published: January 2014
The 2013 Rule adds two specific deadlines for the initial lease-up/occupancy of HOME rental units:
Project completion, defined at §92.2, means that title transfer requirements and construction work have been performed, the project complies with all HOME requirements, and the final drawdown of HOME funds has been disbursed. For purposes of implementing this definition, HUD will track deadlines using the date that a project is completed in the Integrated Disbursement and Information System (IDIS).
For example, consider a project with 20 HOME-assisted rental units. The project is completed and a Certificate of Occupancy is issued on April 1, 2014. On October 31, 2014 (six months later), 5 of the units remain vacant. The PJ will need to work with the owner to prepare and submit documentation to HUD on what marketing steps will be taken to rent these vacant units as soon as possible. The PJ may wish to impose a schedule on the owner for undertaking these steps. In the event any of these 5 units have not been leased a year later (by October 31, 2015), the PJ must repay the HOME funds invested in those units.
These occupancy deadline and marketing requirements apply to projects to which HOME funds are committed on or after August 23, 2013.