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HOME Homeownership

HOME Investment Partnerships Program (HOME) assistance can be provided to eligible homebuyers for acquisition only, acquisition/rehabilitation or new construction of homes. All HOME funds used for homeownership assistance must benefit homeowners whose family income does not exceed 80 percent of the area median income. In addition, the assistance must meet the following requirements:

  • The assisted housing must be the owner’s principal residence.

  • The estimated value of the property must not exceed 95 percent of the median area purchase price.

  • The Participating Jurisdiction (PJ) must establish resale provisions that safeguard the property's continued affordability or recapture all or part of the HOME subsidy invested. 

PJs can structure the form of financial assistance for homebuyer activities according to the particular needs of the program’s target participants. Generally, the form of assistance will include grants, deferred-payment loans, below-market-rate loans, or loan guarantees. 

For more information on homeownership, see 24 CFR 92.254.

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Policy Guidance

  

HOMEfires

HOMEfires Vol. 10, No. 1: Guidance on the HOME Maximum Purchase Price or After-Rehabilitation Value Limits

This guidance supersedes HOMEfires Vol. 9, No. 3.

What limits must PJs use as the maximum purchase price or after-rehabilitation value limits for their HOME-assisted homeownership housing, now that the Economic Stimulus Act of 2008 (Public Law 110-185) has expired and the Housing and Economic Recovery Act of 2008 (Public Law 110-289) has established a new procedure for determining Section 203(b) mortgage limits?

Date Published: February 2009

HOMEfires Vol. 9, No. 1: Guidance on using HOME to Help Existing Homeowners Who Are Having Difficulty Paying Their Private Mortgages Because of Unfavorable Financing Terms

How can PJs help existing homeowners who are having difficulty paying their private mortgages because of unfavorable financing terms?

Date Published: January 2008

HOMEfires Vol. 5, No. 5: Guidance on Resale and Recapture Requirements in a HOME Written Agreement

Can a PJ include both resale and recapture requirements in a written agreement on the same HOME-assisted homebuyer unit and choose the option to be imposed at the time of resale?

Date Published: November 2003

HOMEfires Vol. 5, No. 4: Guidance on Calculating the Period of Affordability for Homebuyer Projects Under the Resale and Recapture Provisions

Are the periods of affordability for homebuyer projects calculated in the same manner for projects under the resale and recapture provisions?

Date Published: October 2003

HOMEfires Vol. 3, No. 7: Using HOME in Conjunction with the Homeownership Option of the Housing Choice Voucher

Can HOME funds be used in conjunction with the homeownership option of the Housing Choice Voucher Program?

Date Published: May 2001

HOMEfires Vol. 1 No. 10: Impact of Quality Housing and Work Responsibility Act of 1998 on Income Eligibility Requirements for Participants in HOME-Funded Lease-Purchase Programs

How will the recently passed Quality Housing and Work Responsibility Act of 1998 affect income eligibility requirements for participants in HOME-funded lease-purchase housing programs?

Date Published: December 1998

HOMEfires Vol. 1 No. 9: HOME and other Federal requirements that Apply to Property Receiving HOME Downpayment Assistance

What are the HOME and other Federal requirements that apply to property receiving HOME downpayment assistance?

Date Published: August 1998

HOMEfires Vol. 1 No. 8: HOME and Individual Development Accounts

What is an Individual Development Account? Can HOME funds be used for them when buying a home is the goal?

Date Published: July 1998

HOMEfires Vol. 1 No. 6: Setting up an Activity and Committing Funds in IDIS under HOME to Purchase, Rehabilitate, and Rent Homes at Different Locations

How should I set up an activity and commit funds in IDIS under HOME to purchase, rehabilitate, and rent out homes at different locations? Is there a way to set up and fund this activity without knowing the addresses of the properties? Can one activity have more than one property address? Would the same process work for a first-time homebuyer program which provided HOME assistance at different locations?

Date Published: February 1998

HOMEfires Vol. 1 No. 2: Applicability of HOME Program Requirements to Purchasers of 2-4 unit Owner-Occupied Projects

The City of Hartford, Connecticut, in an effort to address its low homeownership rate and lack of affordable rental housing designed a HOME Program funded Homebuyer Downpayment Assistance Program for purchasers of 2-4 unit properties whose incomes may exceed low-income limits. Can HOME assistance to the purchasers under this downpayment assistance program be structured to avoid triggering the income requirement and affordability and resale/recapture restrictions contained in 92.254 of the HOME regulations for the owner-occupant?

Date Published: July 1997

HOMEfires Vol. 1 No. 1: Using HOME Funds for Housing Counseling

What are the constraints on using HOME funds for housing counseling?

Date Published: June 1997

HOME CPD Notices

Notice CPD-12-007: Operating Guidance for Implementing FY 2012 HOME Appropriation Requirements

Note: CPD Notice 14-08 supercedes CPD Notice 12-007.

This Notice provides background and requirements on the Consolidated and Further Continuing Appropriation Act of 2012 (PL 112-55) as well as information on the implementation of the FY2012 HOME Appropriation law.

Date Published: May 2012

Notice CPD-12-003: Guidance on Resale and Recapture Provision Requirements under the HOME Program

This Notice outlines the basic requirements for resale and recapture provisions in HOME homebuyer projects.  

Date Published: January 2012

Notice CPD-03-05: Guidance on Manufactured Housing under the HOME Program

This Notice is a comprehensive revision of the last notice on this subject, CPD-94-17, and reflects changes made to the HOME regulations since 1996.

Date Published: March 2003

Notice CPD-98-02: Allocating Costs and Identifying HOME-assisted Units in Multi-Unit Projects (Supersedes CPD Notice 94-12)

This Notice provides guidance to participating jurisdictions (PJs) who will use HOME funds, in combination with other funds, to develop multi-unit rental and homeownership projects.

Date Published: March 1998

Notice CPD-94-17: Field Office Guidance on Manufactured Housing under the HOME Program (Supersedes CPD Notice 92-32)

This Notice is a comprehensive revision of directive CPD-92-32 and incorporates amendments to the National Affordable Housing Act of 1990. These amendments, part of the Housing and Community Development Act of 1992 and Multifamily Housing Property Disposition Reform Act of 1994, make certain new provisions applicable to owners of manufactured units.

Date Published: July 1994

Notice CPD-93-42: Community Land Trusts and the HOME Program

HUD has withdrawn this guidance.

Date Published: December 1993

Other Policy Guidance

HUD Mortgagee Letter 96-21: Single Family Loan Production - Using 203(k) Rehabilitation Mortgage Insurance With Participation by State and Local Housing Agencies and Non-Profit Organizations

This Mortgagee Letter contains information to help lenders, State and local officials and nonprofit organizations use the FHA 203(k) Rehabilitation Mortgage Insurance Program in conjunction with housing grant programs, such as HOME, HOPE 3 and Community Development Block Grants (CDBG).

Date Published: April 1996

Guidebooks and Training Manuals

  

Building HOME: A HOME Program Primer - Training Manual and Slides

This training provides an overview of the HOME Program, including changes made to the regulations in 1996 with the publication of the HOME Final Rule.

Date Published: February 2012

Tools

  

CPD Income Eligibility Calculator

The CPD Income Eligibility Calculator is a tool to help CPD grantees determine income eligibility and assistance amounts for beneficiaries of most CPD programs.

Date Published: March 2013

Compliance Resources

  

HOME Resale and Recapture Summary

This summary chart provides information on resale and recapture requirements.

Date Published: March 2009

HOME Homeownership Value

Section 215(b) of NAHA requires that the initial purchase price or after-rehabilitation value of homeownership units assisted with HOME funds not exceed 95 percent of the area median purchase price for single family housing, as determined by HUD.

Date Published: January 2014

Reports

  

2012/2013 HOME Homebuyer Activities Reports

PJs can use this report to view homebuyer activities with the 2012 or 2013 program year in IDIS that are in final draw, and those 2012 or 2013 HOME homebuyer activities with more than 90 percent of the HOME funds drawn yet no draws in the past six months.

Date Published: December 2013

FAQs

HOME FAQs

These documents contain HOME Program FAQs organized by topic.

Date Published: February 2014