Date Published: October 2012
Since neither the HOME Program nor CDBG has policies developed for this middle income group, grantees should develop appropriate policies for their own circumstances. HUD finds the following two options acceptable:
Other methodologies could also meet the NSP requirements, provided that they also ensure reasonable costs and comply with all other standards in the Notice.
Grantees must also ensure that generous NSP project subsidies, which may have the effect of reducing borrowing and/or the need for other sources of financing, do not result in undue enrichment of a developer through excessively high rental income.