HOME Rental Housing

HOME Investment Partnerships Program (HOME) funds may be used for the acquisition, new construction, or rehabilitation of affordable rental housing. HOME-assisted rental units must be occupied by income eligible tenants, and carry rent and occupancy restrictions for varying lengths of time depending upon the amount of HOME funds invested per unit. Included in this topic area is information about program design issues, subsidy layering, lease terms, calculating rents, using HOME with Low-Income Housing Tax Credits, and managing for ongoing compliance.

For more information on Rental Housing, see 24 CFR 92.252.

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Policy Guidance and FAQs

FAQs

HOME Rental Housing Development FAQs

View HOME Rental Housing Development FAQs.

Program Limits

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. 2: Guidance on Fee For Monitoring of HOME-Assisted Rental Projects

How can a HOME PJ determine the amount of its fee for ongoing monitoring of HOME-assisted rental projects?

Date Published: April 2018

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 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. 13, No. 2: Guidance on How to Establish Utility Allowances for HOME-Assisted Rental Units

When does the utility allowance requirement established in the 2013 HOME Final Rule become effective, and what methods may a PJ use to establish the utility allowance for HOME-assisted rental units?

Date Published: August 2016

HOMEfires Vol. 11 No. 1: Guidance on the Impact of the Violence Against Women Reauthorization Act of 2013 on HOME-Funded Projects

Does the Violence Against Women Reauthorization Act of 2013 impact HOME-funded projects?

Date Published: December 2013

HOMEfires Vol. 3, No. 10: Considering Enhanced Section 8 Vouchers as Project-based Rental Assistance or Tenant-Based Rental Assistance for Determining the Rent Applicable to a HOME Unit

For the purpose of determining the rent applicable to a HOME unit, are enhanced Section 8 vouchers, sometimes referred to as "sticky" vouchers, considered project-based rental assistance or tenant-based rental assistance?

Date Published: November 2001

HOMEfires Vol. 3, No. 2: Frequency and Number of Units Required for On-Site Inspections of HOME-Assisted Rental Housing

The HOME Final Rule states that each Participating Jurisdiction must perform on-site inspections of HOME-assisted rental housing. How frequently should these inspections be performed? How should each PJ determine the number of units that must be inspected?

Date Published: February 2001

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

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

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. HUD Field Office staff and HOME participating jurisdictions must follow this interim policy until HUD publishes a regulation for effect establishing new maximum per-unit subsidy limits for the HOME Program.

Date Published: March 2015

Notice CPD-03-08: Using HOME Funds in Addressing the Challenges of Homelessness

This Notice provides guidance to Field Offices and PJs in the use of HOME Program funds to assist individuals and families who are homeless or at risk of homelessness.

Date Published: December 2013

Notice CPD-94-20: Rent Exceptions for HOME-Assisted Rental Projects

This Notice describes how HOME Rent Exceptions can be used, discusses the criteria for issuing rent exceptions, presents the steps PJs must follow in applying for a rent exception, and outlines the procedures HUD Field Offices will use in reviewing these application's and approving rent exceptions.

Date Published: July 1994

Notice CPD-94-01: Using HOME Funds for SRO and Group Housing (Supersedes CPD Notice 92-31)

This Notice provides guidance on using HOME funds for SRO and Group Housing projects.

Date Published: January 1994

Other Policy Guidance

Notice PIH 96-63: Determining Section 8 Rents For Units in HOME-assisted Projects

This Notice informs public housing agencies and Indian housing authorities that units in HOME-assisted projects are considered eligible housing for families receiving Section 8 tenant-based assistance.

Date Published: August 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.

HOME PJs Vacant Unit Reports

The purpose of the HOME PJs Vacant Units Reports is to help HOME participating jurisdictions (PJs) identify units in HOME projects that are marked "vacant" in the Integrated Disbursement and Information System (IDIS).

HOME Multifamily Underwriting Template

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

Date Published: March 2018

HOME Cost Allocation Tool

This tool helps PJs to conduct and document cost allocation reviews for multi-unit rental projects as required by CPD Notice 16-15.

Date Published: October 2017

Compliance in HOME Rental Projects: A Guide for PJs 

This guide provides advice to PJs on how to nurture compliant HOME projects.

Date Published: May 2012

Compliance in HOME Rental Projects: A Guide for Property Owners 

This guide helps owners of HOME-assisted properties comply with the HOME Program’s ongoing affordability requirements.

Date Published: May 2012

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 Affirmative Marketing, Tenant Selection, and Lease Compliance Checklist

This checklist is used to document compliance with HOME requirements related to affirmative marketing, tenant selection, and lease compliance.

Date Published: June 2010

HOME Housing Quality Standards (HQS) Inspection Form

This is a checklist that can be used to ensure that a property meets HUD's Housing Quality Standards.

Date Published: June 2010

HOME Rent Determination Chart 1 - Low and High HOME Rents

This form is completed by the PJ and given to the owner/manager of HOME-assisted rental housing in order to inform them of the current fair market rents with 50% and 65% rent limits as provided by HUD. 

Date Published: June 2010

HOME Rent Determination Chart 2 - Utility Allowance

This form is used to determine the allowance for tenant-furnished utilities and other services.

Date Published: June 2010

HOME Rent Determination Chart 3 - Actual Maximum Rent Computation

This form is completed by the PJ and given to the owner/manager of HOME-assisted rental housing as a tool to calculate the actual maximum rent. 

Date Published: June 2010

HOME Rental Housing Income Limits Form for a PJ to Provide to Owner/Manager

This form is completed by the PJ and given to the owner/manager in order to provide information about the income level per household size that is eligible for the HOME program. 

Date Published: June 2010

HOME Rental Project Compliance Report

This form is completed by the PJ and kept in the project file to ensure that the project has met all the compliance requirements for the HOME Program. 

Date Published: June 2010

Managing Rental Unit Mix Under HOME Chart

This chart provides HOME requirements for rental housing units when a tenant's income increases. The chart describes the rent to charge and what actions an owner, manager, or other administrator of a rental project must take to ensure compliance. 

Date Published: October 2009

Building ENERGY STAR New Homes and Incorporating Energy Efficiency and Green Building Practices into HOME-Funded Affordable Housing

This guidebook provides information on creating ENERGY STAR-qualified affordable housing.

Date Published: September 2009

Videos and Training Material

HOME Rental Compliance

Part 1Part 2

These webinars focus on the role of the PJs and property managers during the HOME affordability periodThe webinars are available in (2) two-hour sessions

Date Published: July 2018

Using the HOME Cost Allocation Tool: Case Studies and Demonstration Web Tutorials

This series of web tutorials guides users through the use of the HOME Cost Allocation Tool, including how to select and use the appropriate method of cost allocation.

Date Published: October 2017

Allocating Costs in the HOME Program Webinar

This webinar explains the requirements for cost allocation within the HOME program as covered in CPD Notice 16-15.

Date Published: December 2016

HOME Commitment Interim Rule Webinar

This webinar explains the new provisions in the 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

HUD Utility Schedule Model: Calculating Utility Allowances for HOME Webcast

This webcast demonstrates how to use the HUD Utility Schedule Model to calculate utility allowances for HOME-assisted rental projects.

Date Published: September 2016

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

These webinars describe what Participating Jurisdictions must do in order to meet the HOME underwriting and subsidy layering requirements prior to making funding commitments to specific HOME projects. These webinars also review the requirements as outlined in Notice CPD 15-11 which must be completed prior to the commitment of HOME funds.

Date Published: September 2016

Requirements for Committing HOME funds Webinar

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 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