OVERVIEW: The U.S. Department of Housing and Urban Development provides funds to create affordable housing for low-income households. HOME funds are awarded annually as formula grants to participating jurisdictions. HUD establishes HOME Investment Trust Funds for each grantee, providing a line of credit that the jurisdiction may draw upon as needed. This money can be used for grants, direct loans, loan guarantees or other forms of credit enhancement, or rental assistance or security deposits. All of these options can be used to pay for a broad range of eligible activities including:
- Direct home purchase or rehabilitation financing
- Building or rehabilitate housing for rent or ownership
- Site acquisition or improvement
- Demolition of dilapidated housing to make way for HOME-assisted development
- Payment of relocation expenses
TIMETABLE: Check with your local housing authority.
APPLICATION PROCESS: Program funds are allocated to units of general local government on the basis of a formula. Shortly after HOME funds become available each year, HUD informs eligible jurisdictions of the amounts earmarked for them. Participating jurisdictions must have a current and approved Consolidated Plan, which will include an action plan that describes how the jurisdiction will use its HOME funds. A newly eligible jurisdiction also must formally notify HUD of its intent to participate in the program.
TAGS: funding, home, low income