The Consolidated and Further Continuing Appropriations Act of 2012 and the Consolidated and Further Continuing Appropriations Act of 2013 imposed new requirements on 2012 and 2013 HOME Investment Partnerships Program (HOME) projects. The purpose of these requirements is to improve project and developer selection by Participating Jurisdictions (PJs) and to ensure that there is adequate market demand for 2012 and 2013 HOME projects.
The FY 2012 and FY 2013 Appropriation Laws imposed four key requirements:
- All 2012 and 2013 HOME projects must be completed within four years of the date the written agreement is executed. In cases where a project is not completed by this deadline, the project will be considered “involuntarily terminated before completion” and the HOME funds invested in that project will need to be repaid.
- Before entering into a legally binding written agreement to provide HOME funds for a 2012 or 2013 HOME project, a PJ must have underwritten the project or evaluated the underwriting of another funder, assessed the development capacity and fiscal soundness of the developer, and examined neighborhood market conditions to ensure that there is adequate need for each project.
- PJs must convert any 2012 or 2013 HOME homebuyer unit that has not been sold to an eligible homebuyer within six months of construction completion to a HOME-assisted rental unit, or repay the HOME investment.
PJs may not have reserved FY 2012 or FY 2013 HOME funds to a CHDO unless the PJ had determined that the CHDO had paid staff with demonstrated development experience. The PJ must have ensured that the current CHDO staff had experience developing projects of a similar size, scope and level of complexity as the activities for which HOME funds were being reserved or committed.