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.
View Homebuyer Assistance FAQs.
This notice establishes an interim policy that Field Office staff and PJs must follow directing PJs to use the Section 234-Condominium Housing basic mortgage limits, for elevator-type projects, as an alternative to the Section 221(d)(3) limits in order to determine the maximum amount of HOME funds a PJ may invest on a per-unit basis in HOME-assisted housing projects.
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.
Are Participating Jurisdictions (PJs) allowed to use an appraisal-based resale method to meet the HOME program requirements at §92.254(a)(5)(i)?
Date Published: January 2020
What are HOME PJs' responsibilities for developing, disseminating, and implementing affirmative marketing procedures?
Date Published: February 2018
Can the Office of Community Planning and Development (CPD) within a HUD Field Office allow a HOME PJ that is not listed on the published list of “Base City High Cost Percentages” to use the high-cost percentage of its HUD Multifamily Regional Office to determine the maximum per-unit subsidy limits for HOME?
Date Published: July 2017
How can PJs help existing homeowners who are having difficulty paying their private mortgages because of unfavorable financing terms?
Date Published: January 2008
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
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
Can HOME funds be used in conjunction with the homeownership option of the Housing Choice Voucher Program?
Date Published: May 2001
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
What are the HOME and other Federal requirements that apply to property receiving HOME downpayment assistance?
Date Published: August 1998
What is an Individual Development Account? Can HOME funds be used for them when buying a home is the goal?
Date Published: July 1998
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
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
What are the constraints on using HOME funds for housing counseling?
Date Published: June 1997
This Notice provides guidance to HOME PJs regarding the requirement that HOME-assisted projects be completed within 4 years of the commitment of HOME funds and outlines the process for resolving noncompliance with this requirement.
Date Published: January 2020
This Notice explains Section 242 of Title I of Division K of the Consolidated Appropriations Act, 2017 (Public Law 115-36) and Section 235 of Title II of Division L of the Consolidated Appropriations Act, 2018 (Public Law 115-141) (collectively the “Appropriation Acts”), which suspended the 24-month commitment requirement for HOME Investment Partnerships Program (HOME) funds.
Date Published: August 2018
This Notice provides guidance to HOME participating jurisdictions (PJs) on the homebuyer program requirements set forth in the HOME regulations at 24 CFR 92.254(f). PJs must implement these requirements for all homebuyers who receive HOME assistance or purchase a unit developed with HOME funds.
Date Published: August 2018
This Notice supersedes Notice CPD 98-02.
This Notice provides guidance to HOME PJs on the methods of conducting cost allocation in accordance with the HOME regulations at 24 CFR Part 92. PJs are required to perform cost allocation and identify the number and characteristics of units to be designated as HOME units for multi-unit rental or homebuyer HOME projects before entering into a commitment of HOME funds.
Date Published: August 2016
This Notice provides guidance to HOME PJs in the development and implementation of written subsidy layering and underwriting guidelines in accordance with the HOME regulations at 24 CFR Part 92. A PJ is required to develop and use such guidelines to evaluate and ensure that the level of HOME investment does not exceed the amount that is necessary to provide quality affordable housing that is financially viable.
Date Published: December 2015
PJs must commit HOME funds within 24 months of HUD's obligation of its grant, or HUD will recapture the funds from the PJ's HOME Investment Trust account. This Notice explains what constitutes an eligible commitment of HOME funds for the purposes of meeting the 24-month commitment deadline.
Date Published: November 2015
This Notice provides guidance on alternate maximum per-unit subsidy limits for the HOME Investment Partnerships Program due to the discontinuation of the Section 221(d)(3) mortgage insurance program.
Date Published: March 2015
This Notice outlines the basic requirements for resale and recapture provisions in HOME homebuyer projects.
Date Published: January 2012
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
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
Prior to May 2006, it was understood that FHA prohibited a downpayment assistance provider from using second mortgage liens or grant agreements which stated that the downpayment assistance provider is entitled to excess proceeds at foreclosure in the event a third party's bid exceed the FHA-insured first mortgage amount. This joint memo determines that FHA regulations would not prohibit HOME downpayment assistance in conjunctions with FHA-insured financing under such a scenario.
Date Published: September 2006
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
The CPD Income Eligibility Calculator is a tool to help CPD grantees determine income eligibility and assistance amounts for beneficiaries of most CPD programs.
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.
This Excel-based tool helps HOME PJs conduct and document cost allocation reviews for multi-unit rental projects as required by CPD Notice 16-15. The tool guides a PJ’s decision about with method of cost allocation is most appropriate to a given project and includes "method-specific" worksheets that can be used to ensure that the HOME investment in a project is commensurate with the number and type of units designated as HOME-assisted and subject to HOME income and rent restrictions.
Date Published: October 2017
This tool provides an analytic framework by which developers and PJs can both plan new homebuyer development projects and work together to re-assess their efforts and identify strategies to consider as “course corrections” when sales are slow.
Date Published: June 2012
Because of current housing market conditions, many HOME PJs are confronted with unsold homes originally constructed or rehabilitated for sale to income eligible buyers. In some cases, projects convert to rental, triggering substantially different requirements than those anticipated at project inception. This list highlights key regulatory, policy, and procedural implications that PJs need to consider and account for in restructuring both their written agreements and, to some degree, their internal policies and procedures.
Date Published: January 2012
This summary chart provides information on resale and recapture requirements.
Date Published: March 2009
This interactive self-paced online training is a comprehensive introduction and important refresher on key HOME Program requirements and topic areas. Complete all modules to learn the full breadth of eligible HOME activities and to access guidance related to effective and compliant implementation.
Date Published: March 2020
This webinar explains the requirements described in Notice CPD-20-01: Four-Year Completion Requirement for HOME-Assisted Projects. HOME projects must be completed four years from the date of project commitment. Failure to meet this deadline may result in HUD terminating the project and the PJ repaying HOME funds.
Date: September 16, 2020
This webinar explains the requirements of CPD Notice 18-09 and §92.254(f) which require HOME PJs to develop homebuyer program policies. In addition to this webinar, a follow-up Office Hours session was held to address questions arising from the initial webinar.
Date: June 25, 2019
HUD has developed a seven-part tutorial on the use of the HOME Cost Allocation Tool. It demonstrates how to use the HOME Cost Allocation Tool, introducing users to the requirement for cost allocation, providing guidance on unit comparability and identifying HOME-eligible and ineligible costs, demonstrating how to select the appropriate method of cost allocation, and showing the use of each method.
Date Published: October 2017
This webinar describes the HOME Grant-Specific Commitment Interim Rule. HUD officials explain the new provisions in the recently published interim regulation implementing grant-specific commitment requirements for Fiscal Year 2015 and subsequent HOME grants and explain how it affects PJ policies, written agreements, and treatment of program income.
Date: January 12, 2017
This webinar describes what PJs must do in order to meet the HOME underwriting and subsidy layering requirements prior to making funding commitments to specific HOME projects.
Date: July 28, 2016
This webinar describes what PJs must do in order to meet the HOME requirements for committing funds to specific local projects and to programs undertaken by State recipients and subrecipients.
Date: May 10, 2016
This webcast provides an overview of the changes to the HOME Final Rule regarding project deadlines, including the 4-year project completion deadline, 9-month homebuyer sales deadline, and the rental occupancy deadlines.
Date: October 24, 2013