Home program basics
Download
1 / 38

home program basics - PowerPoint PPT Presentation


  • 247 Views
  • Updated On :

HOME PROGRAM BASICS. www.hud.gov/homeprogram/ Kathleen M. Bialas OGC/HHQ/HUD . HISTORY AND GOALS. Housing block grant program created by the Cranston-Gonzalez National Affordable Housing Act of 1990 FY 2007 appropriation -- $1.73 billion. ALLOCATION OF FUNDS.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'home program basics' - Audrey


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
Home program basics l.jpg

HOME PROGRAM BASICS

www.hud.gov/homeprogram/

Kathleen M. Bialas

OGC/HHQ/HUD


History and goals l.jpg
HISTORY AND GOALS

  • Housing block grant program created by the Cranston-Gonzalez National Affordable Housing Act of 1990

  • FY 2007 appropriation -- $1.73 billion


Allocation of funds l.jpg
ALLOCATION OF FUNDS

  • HOME funds allocated by formula

    • 40% to states/60% to local governments (participating jurisdictions – PJs)

      Allocations for each PJ posted on HUD website

  • Minimum qualification thresholds

  • PJs must have a Consolidated Plan that describes needs and sets forth a 5 year strategy & annual action plan describing the use of funds --citizen participation in the development of the Con plan


Allocation of funds4 l.jpg
ALLOCATION OF FUNDS

  • Planning and admin limited to 10%

  • 15% set-aside for housing that is owned, developed, or sponsored by community housing development organizations (CHDOs)

  • Additional 5% may be used for CHDO operations

    Timeframe

    • 24 months to commit funds

    • 5 years to expend funds


Eligible activities l.jpg
ELIGIBLE ACTIVITIES

  • Homeowner Rehabilitation

  • Homebuyer Programs

  • Rental Housing

  • TBRA



Program targeting l.jpg
PROGRAM TARGETING

  • 100% of HOME funds must go to assist families <80% Median Family Income

  • TBRA and rental -- 90% of each grant to <60% MFI

  • Additional targeting for rental project with five or more units: 20% of units rented to families <50% MFI



Applicant eligibility l.jpg

INCOME

DEFINED

APPLICANT ELIGIBILITY

  • Must use one of three income definitions:

    • Section 8 annual income [also used for LIHTC]

    • IRS Adjusted gross income

    • Census long form annual income


Long term occupancy l.jpg
LONG-TERM OCCUPANCY

  • Rental: vacated units must be rented to income-eligible households

  • Homebuyer: resale/recapture provisions

  • Homeowner rehab: no requirements


The subsidy l.jpg
THE SUBSIDY

  • Flexibility/PJ choice

  • Can provide funds as:

    • Interest bearing or non-interest bearing loans or advances

    • Deferred loans

    • Grants

    • Interest subsidies

    • Equity investments

    • Loan guarantees


Subsidy limits l.jpg
SUBSIDY LIMITS

  • Minimum HOME investment = $1,000 per unit

  • Maximum HOME subsidy amount = 221(d)(3) limit, which varies by PJ

  • Limits do not apply to TBRA

24 CFR 92.250


Eligible costs l.jpg
ELIGIBLE COSTS

  • Hard costs

  • Soft costs

  • Acquisition costs

  • Relocation costs

  • Refinancing costs

24 CFR 92.206


Property standards l.jpg
PROPERTY STANDARDS

  • Apply to all HOME-assisted units

  • Vary by activity

  • PJ choice

24 CFR 92.251


Match basics l.jpg
MATCH BASICS

  • PJs must provide 25% match of HOME funds

    • Match must be a permanent contribution to the HOME Program

    • Based on expenditure of funds

    • Measured on a Federal fiscal year basis – program match, not project

24 CFR 92.219 - 92.221; CPD Notice 97-03


Sources of match l.jpg
SOURCES OF MATCH

  • Cash or “cash equivalents”

  • Value of waived taxes, fees or charges

  • Value of donated land/real property

  • Cost of infrastructure improvements

  • Percentage of proceeds of housing bonds


Sources of match18 l.jpg
SOURCES OF MATCH

  • Value of donated materials and labor

  • Sweat equity

  • Direct costs of supportive services to residents of HOME projects

  • Direct costs of counseling to HOME-assisted households


Match reduction l.jpg
MATCH REDUCTION

  • Fiscal distress/Severe fiscal distress

    • HQ publishes notice annually

  • Presidentially-declared disaster areas

24 CFR 92.222


Rental housing eligible properties l.jpg
RENTAL HOUSING: ELIGIBLE PROPERTIES

  • No requirements on type or style of property

  • Eligible types include:

    • Single family and multifamily

    • Transitional and permanent housing

    • SROs and group homes


Rental housing the program rule l.jpg
RENTAL HOUSING: THE PROGRAM RULE

  • 90% Of households assisted with HOME rental and TBRA must have incomes at/below 60% of MFI

    • Applies when funds are spent -- initial occupancy

24 CFR 92.216


Rental housing the project rule l.jpg
RENTAL HOUSING: THE PROJECT RULE

  • Projects with 5 or more units must have at least 20% of units occupied by families at/below 50% of MFI

    • Rents must be at Low HOME rent level

    • Balance of units may be at/below 80% of median [but limited by overall program targeting for rental housing]

24 CFR 92.252(a)


Home rents l.jpg
HOME RENTS

  • For projects with 5 or more units, there are two rent levels:

    • High HOME rent (80% of units)

    • Low HOME rent (20% of units)

  • HUD annually calculates and distributes HOME rents

  • PJ must disseminate maximum rents and utility allowances annually to project owners


Determining home assisted units l.jpg
DETERMINING HOME-ASSISTED UNITS

Assist all or some of the units

  • Method : Actual Costs

  • Proration

    • If units are comparable in terms of BR size, sq. ft. and amenities, the number of HOME-assisted units determined by:

      • HOME investment : total HOME-eligible project costs

24 CFR 92.205(d); CPD Notice 98-02


Homeowner rehab eligible activities l.jpg
HOMEOWNER REHAB: ELIGIBLE ACTIVITIES

  • Assist low-income owner-occupants with

    • Rehabilitation

    • Reconstruction

24 CFR 92.254(b)


Homebuyers the applicant l.jpg
HOMEBUYERS: THE APPLICANT

  • The applicant must:

    • be low-income

    • occupy the property as principal residence

24 CFR 92.254(a)


Eligible activities27 l.jpg
ELIGIBLE ACTIVITIES

  • HOME can be used for a number of homeownership activities

    • Acquisition

    • Acquisition/rehabilitation

    • New construction


Eligible properties l.jpg
ELIGIBLE PROPERTIES

  • Eligible property types:

    • Single-family home

    • Two-to-four unit property

    • Condominium unit

    • Coop or mutual housing unit (if recognized as ownership by state)

    • Manufactured home


Financial assistance l.jpg
FINANCIAL ASSISTANCE

  • Assistance can be used

    • To assist the homebuyer to buy the housing--downpayment/closing costs

    • To assist the developer to construct or acquire & rehab housing to be sold to homebuyer


Recapture resale l.jpg
RECAPTURE/RESALE

  • PJs have two options for ensuring affordability of the housing during the affordability period:

    • Recapture the HOME subsidy

    • Resale restrictions – resale to another low-income homebuyer


Other requirements l.jpg
OTHER REQUIREMENTS

  • Labor standards [Davis-Bacon wages]

  • Environmental review

  • Nondiscrimination/affirmative marketing

  • Relocation benefits and replacement of housing converted or demolished

  • Lead-based paint


Slide32 l.jpg
ADDI

  • American Dream Downpayment Initiative

    • Initially funded in 2003

    • “Piggy-backed” on HOME

    • PJs that have population of 150,000 or qualify for $50,000 under the formula are eligible to receive ADDI

24 CFR 92.600


Slide33 l.jpg
ADDI

  • Similar to homebuyer assistance under HOME

  • Assistance is limited to first-time homebuyers

    • Individual and his/her spouse who has not owned a home during the most recent 3-year period

  • Exceptions for:

    • Displaced homemakers

    • Single parents


Slide34 l.jpg
ADDI

  • Forms of Assistance

    • Downpayment assistance

    • Rehabilitation financing for units purchased with ADDI funds

  • Costs

    • Acquisition costs

    • Rehabilitation costs (20% cap)

    • Related soft costs


Ineligible costs l.jpg
INELIGIBLE COSTS

  • Administrative costs

  • Development hard and soft costs for new construction

  • Costs related to rental housing

  • Rental assistance


Addi rules l.jpg
ADDI Rules

  • Maximum ADDI assistance per unit:

    • Greater of 6% of sales price or $10,000

  • HOME funds can be used in ADDI units


Addi rules37 l.jpg
ADDI Rules

  • HOME rules apply to ADDI

    • Income requirements

    • Principal residence requirements

    • Resale/Recapture

    • Property standards

    • Minimum/Maximum per unit subsidy

    • Cross-cutting Federal requirements


Home resources l.jpg
HOME Resources

  • www.hud.gov/homeprogram/

  • Final Rule (24 CFR Part 92)

  • CPD Notices

  • HOMEfires

  • Model Guides


ad