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 and FAQs

FAQs

Homebuyer Assistance FAQs

View Homebuyer Assistance FAQs.

Program Limits

HOME Homeownership Value Limits

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: March 2019

HOME Maximum Per-Unit Subsidy Limits

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.

Date Published: June 2018

HOMEfires

HOMEfires Vol. 14, No. 1: Guidance on PJ Affirmative Marketing Responsibilities

What are HOME PJs' responsibilities for developing, disseminating, and implementing affirmative marketing procedures?

Date Published: February 2018

HOMEfires Vol. 12, No. 1: Guidance on Using the Base City High Cost Percentages to Determine the Maximum Per-Unit Subsidy Limits for HOME

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

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-18-10: Suspension of 24-Month HOME Commitment Requirement for Deadlines Occurring in 2016, 2017, 2018, 2019, and 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

Notice CPD-18-09: Requirements for HOME Homebuyer Program Policies and Procedures

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

Notice CPD 16-15: Allocating Eligible Costs and Identifying HOME-Assisted Units in Multi-Unit HOME Rental and Homeownership Development Projects

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

Notice CPD-15-11: Requirements for the Development and Implementation of HOME Underwriting and Subsidy Layering Guidelines

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

Notice CPD-15-09: Requirements for Committing HOME funds

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

Notice CPD-15-003: Interim Policy on Maximum Per-Unit Subsidy Limits for the HOME Program

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

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-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

Other Policy Guidance

CPD Memo: Joint CPD and FHA Memorandum on Cross-selling FHA Programs 

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

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 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.

Post 2011 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.

HOME Multifamily Underwriting Template

This template assists HOME PJs to complete required underwriting and subsidy layering.

Date Published: March 2018

HOME Cost Allocation Tool

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

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

HOME Resale and Recapture Summary

This summary chart provides information on resale and recapture requirements.

Date Published: March 2009

Videos and Training Material

Using the HOME Cost Allocation Tool: Case Studies and Demonstration Webinar

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

HOME Commitment Interim Rule Webinar

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 Published: January 2017

HOME Underwriting and Subsidy Layering Guidelines - HUD Notice CPD-15-11 Webinar

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 Published: July 2016

Requirements for Committing HOME Funds Webinar

This webinar described 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 Published: May 2016

HOME Final Rule: Project Deadlines Webcast

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 Published: October 2013