The U.S. Department of Housing and Urban Development (HUD) published a final rule in the Federal Register to strengthen and modernize regulations for the HOME Investment Partnership Program, the largest federal grant program specifically for creating housing for disadvantaged households.
The updated regulations, based on feedback from stakeholders, community leaders and jurisdictions that receive HOME funding, aim to reduce the administrative burden on communities, better align federal resources and make housing more affordable nationwide.
The updates also were designed to streamline program requirements, improve assistance and protections for renters, strengthen the use of HOME funding for homeownership activities, and encourage energy efficient and green building practices.
“These new rules build on HUD’s commitment to reducing the red tape and making programs easier to use” HUD acting Secretary Adrianne Todman said. “For more than 30 years, HOME has provided funding to build new homes, assist homebuyers, and provide rental assistance. HOME funding plays a critical role in advancing housing opportunities for families across the country.”
Updates to the HOME regulations include:
- Reducing unnecessary burden on grantees and beneficiaries by streamlining income determinations;
- Simplifying HOME rental housing requirements, making it easier to use HOME for small rental housing projects;
- Better aligning HOME with Low-Income Housing Tax Credit and other federal funding;
- Simplifying tenant based rental assistance (TBRA) and making HOME TBRA work better for tenants, landlords, and participating jurisdictions;
- Strengthening tenants’ rights and protections for occupants of HOME-assisted rental units and recipients of HOME tenant-based rental assistance;
- Modernizing and simplifying requirements for homeownership activities;
- Establishing a new method for determining maximum per unit subsidy limits;
- Incentivizing green building and energy efficient building practices to lower energy costs for families and save money for residents;
- Making HOME easier to use to increase the supply of housing by addressing pre-development costs; and,
- Expanding availability and capacity of community developers by updating guidance for Community Housing Development Organizations and Community Land Trusts.
The final rule will reduce administrative burden by reducing duplicative inspections and allowing income determinations performed for other funding sources to be used for HOME. The updates also extend sales deadlines for HOME-assisted units, add clarity for resale provisions, and allow for rehabilitation of HOME-assisted properties after acquisition.
It also includes minor revisions to the regulations for the Community Development Block Grant and Section 8 Housing Choice Voucher programs consistent with the changes to the HOME program.
“The final rule reflects insightful comments offered by multiple stakeholders, whether someone is the prospective resident of a new home, owner of an existing property renovated, with HOME dollars, a developer or operator of affordable rental housing, or a civil servant administering the grant program, these changes will simplify the use of grant funding,” HUD Principal Deputy Assistant Secretary for Community Planning and Development Marion McFadden said. “I’m also pleased that new regulations will incentivize building energy efficient homes, resilient to weather related disasters.”
The HOME program provides grants to states and local jurisdictions and is often used in partnership with local nonprofit groups, to fund activities to build, buy, or rehabilitate affordable housing for rent or homeownership or to fund direct rental assistance to low-income people. The program allocates approximately $1.5 billion among states and 600 localities nationwide annually.