HOME FAQ
Q

What are the new lease-up and occupancy deadlines and associated marketing requirements for HOME-assisted rental units and how will HUD implement them?

Date Published: January 2014

Print ShareThis

A

The 2013 Rule adds two specific deadlines for the initial lease-up/occupancy of HOME rental units:

  • Within 6 months of the date of project completion, every HOME-assisted rental housing unit must be occupied by income-eligible tenants. If a unit is not leased up, the participating jurisdiction (PJ) must submit marketing information to HUD and, if appropriate, submit a new marketing plan.
  • Within 18 months of the date of project completion, if any housing unit is not yet rented to an income-eligible tenant the PJ must repay HOME funds invested in the unoccupied HOME unit(s).

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.


Tags: HOME Rental Housing Development - Leases and Occupancy

FAQ ID:

2308