• Tools and Templates

HOME Consortia Builder - A Tool to Estimate FundingĀ 

Date Published: October 2018

Print ShareThis

Description

The Consortia Builder has been developed in response to requests from local governments for guidance on how to combine the demographics of proposed member governments for the purpose of qualifying for a HOME Investment Partnerships Program (HOME) formula allocation. It uses U.S. Census and HOME data to calculate an estimate of the amount of HOME funds that a potential consortium might qualify for under the HOME formula. Having an estimate of the HOME allocation and administrative funds available (10% of the allocation) also helps potential consortia design their regional housing and staffing plans.

The formula allocation is based on the proposed membership of the consortium and their geography as well as the weighted formula factors of the HOME regulations.

These factors are as follows:

  • 60% of the HOME money goes to entitlements and 10% of that is distributed on population adjusted by per capita income (POPCI)
  • Another 10% of the 60% is distributed on total rental housing units occupied by the poor, adjusted by the national to local rental vacancy rate (VACRENT/ALLRENTALS)
  • Another 20% of the 60% is distributed on Poverty households living in rental housing units built before 1950 (P50RHP)
  • Another 20% of the 60% is distributed on families in poverty (FAMPOV)
  • Another 20% of the 60% is distributed on the number of rental housing units with one or more of four problems (TRHC4)
  • And another 20% of 60% is allocated on this factor after it is adjusted for local to national construction cost variations (AMTRHC4)

The actual amount that a consortium will qualify for under the formula will also be determined by the level of the HOME appropriation, the amount of set-asides in the appropriation for other purposes, the qualification of new CDBG entitlement communities and urban counties, and the formation of other consortia. In years in which the HOME appropriation exceeds $1.5 billion (Allocations and Appropriations), the allocation threshold (i.e., the minimum amount for which a jurisdiction or consortium must qualify under the formula in order to be eligible to receive an allocation) is $500,000. If a jurisdiction or consortium's formula allocation is $500,000 or more but less than $750,000 (i.e., the participation threshold), it must fill the gap with local funds, State funds, and/or State HOME funds in order to participate. Participating jurisdictions are only required to make up the shortfall amount in the initial year of participation in the HOME Program.

The Consortia Builder contains records for every city and town except the District of Columbia and areas within Puerto Rico. These locations have been excluded due to the additional calculations required to comply with the regulatory caps. The R.S. Means Construction Cost Index, part of the AMTRHC4 factor, has been indexed to state averages and will vary by jurisdiction in the actual allocation process. Since the tool only provides an estimate, jurisdictions should allow for a margin of error when determining the member governments needed to participate.

The EXCEL table has three types of geography records:

  1. Places: These are incorporated places and what are known as census-designated places (CDP) and unincorporated territories (UT). The latter are not real cities. They are lands areas and neighborhoods that have concentrations of business, commercial, and residential activities and are used by the Census Bureau in decennial census data tables. It would have been problematic to exclude them from the EXCEL table. Each place record is identified by name and FIPS code. The county name and FIPS code is included for all places that are located in just one county. The county name and FIPS code are left blank when the city is located in two or more counties.
  2. Minor Civil Divisions (MCD): These are the towns and townships. Each MCD is identified by name and FIPS code. The county name and FIPS code also is included. Some MCD's have places within them. For example, the town of Hempstead includes the village of Hempstead. To avoid double counting, data for places within MCD's has been subtracted from the MCD total.
  3. County/County Balances: These records contain the data for any part of a county that is outside the boundaries of a place or minor civil division. It is the residual area that is committed to a consortium organization by the county officials. These records are identified by county name and FIPS code.

Select all of the place, minor civil division, and county balance area records that are going to be part of the planned HOME consortium.

Producing the Estimate

The Excel Table has filters to focus on the criteria. Filter the list by clicking the arrow beside each column heading to obtain a dropdown list. Rows that don't meet the criteria will be hidden.

To calculate the funding estimate, choose a place from the PLACENAME column dropdown list or a county from the COUNTYNAME column dropdown list. The dollar value of each factor and the estimated TOTAL are displayed for the place or county selected. To estimate shares for each potential consortia member, simply find the individual estimate for each of the potential members (filtering for each potential member individually) and compare to the total estimated TOTAL dollars of all of the proposed consortium members.

Related Information

If you have questions about the Consortia Builder, please email Dora I. Rivera or call her at (202) 708-2684 x2410

Resource Links


Tags: HOME
Author Organization
  • HUD
Resource Approver
  • HUD Approved