Forms of HOME Assistance
OZ investors will be interested to know that nearly all forms of assistance are eligible. HOME PJs determine the form of assistance and the terms of assistance that they find most appropriate for their program.
HOME permits PJs to provide financial assistance in the following forms:
- Interest- and non-interest-bearing loans:
- Traditional amortizing loans, with rates and terms determined by the PJ
- Deferred payment loans
- Loans that are forgiven over time
- Grants
- Interest subsidies (interest rate write-downs)
- Loan guarantees
- Equity investments
- Construction financing
- Permanent financing
- Other forms of assistance, with HUD approval
Determine Amount and Type of HOME Funds
When discussing project funding, PJs will want to explain to potential partners how they determine the amount and type of HOME funds they provide. Virtually any form of assistance is permitted; however, maximum per-unit subsidy limits apply.