Date Published: October 2012
A grantee can combine HOME funds and NSP funds in the same project in order to stretch limited resources. While HOME and NSP have similar regulations, there are some differences. When grantees combine funds from two Federal programs, the most restrictive Federal rules apply. HOME TBRA funds provided as a subsidy to the tenant household can be used in conjunction with NSP assisted rental housing if all applicable HOME regulations, such as tenant income requirements and rent restrictions, are met. Note, however, that HOME TBRA is portable and can leave the NSP project if the tenant elects to move and rent elsewhere. Note also that HOME funds may complement but may not replace NSP funds. In addition, grantees must ensure that owners receive enough subsidy to afford the unit but not so much as to over-subsidize the purchase.