HOME is a federally funded program that assists in the production and preservation of affordable housing for low and moderate-income families and individuals. The program funds a broad range of activities including the acquisition, new construction, and rehabilitation of existing properties which are sold to income eligible first-time homebuyers.
For-profit developers; non-profit developers; non-profit organizations designated as Community Housing Development Organizations (CHDOs); municipalities in cooperation with any of the above are eligible to apply for HOME funds.
Eligible Activities and Affordability Requirements
HOME funds can be used for the acquisition and/or rehabilitation of existing structures for sale to income-eligible first-time homebuyers, including distressed or failed properties, or for the new construction of homeownership projects. Projects seeking HOME funds must include a minimum of 3 HOME-assisted ownership units, the sites for which must be secured with a signed Purchase & Sale Agreement at the time of application.
All first-time homebuyers purchasing HOME-assisted units must have a household income of not more than 80% of the area median income. Each HOME-assisted unit must have an appraised value that does not exceed 95% of the area's median price, as determined by the Single Family Mortgage Limits under Section 203(b). Any HOME-assisted rental unit in a multi-family property must be leased to households earning no more than 60% of the area median income. Those rental units may be leased at the "high" HOME rent. (Please see the additional program information below for a list of the 203(b) mortgage limits, maximum rents and maximum household incomes for your community.)
DHCD will award the lesser of $750,000 per project and up to $50,000 per HOME-assisted unit in HOME entitlement/consortium communities. In non-entitlement or non-consortium communities, the maximum award is up to $65,000 per HOME-assisted unit, up to a per project maximum of $750,000. (Please see the additional program information below for a list of entitlement and consortium communities.)
A project located in a HOME entitlement/consortium community must include a matching commitment of local funds, or the application will not be scored. In general, preference will be given to applications with full match commitments.
Loans to "Eligible Borrowers" will be for two years. By the maturity date, each unit must be sold to income-eligible first-time homebuyers. The length of the Affordable Housing Restriction (a/k/a deed rider) for the homebuyer is 15 years. In the event that the homebuyer desires to sell the property prior to the end of 15 years, certain resale/recapture requirements will apply. All HOME loans will be non-recourse and secured by a mortgage on the property. Upon sale of a unit in accordance with the terms of the loan and execution of a deed rider by an income-eligible first-time homebuyer, the principal amount due under the loan is reduced by the amount of HOME funds applicable to the unit.
- strength of overall concept
- strength of development team
- demonstrated need for project in the target neighborhood
- clarity of affordability to the first-time homebuyer
- suitable site and design
- appropriate scope of rehabilitation or construction
- appropriate total development cost for properties
included in proposal
- financial viability of the project
- degree of local support, including local funding commitments
- evidence of readiness to proceed
- evidence of satisfactory progress on projects
previously funded with DHCD resources
- incorporation of smart growth and sustainable development principles
- fair housing principles
How to Apply
DHCD makes HOME first-time homebuyer funding available through a "Notice of Funding Availability" (NOFA). Applicants must complete and submit the One Stop Housing Application. DHCD encourages project sponsors to contact the HOME staff to set up a meeting prior to application submission.
Current Notice of Funding Availability
Additional Program Information
HOME Program Guidelines
DHCD Design Guidelines
HOME Final Rule
MA 2014 HOME Program Rents
MA 2014 HOME Income Limits
HOME/HSF Sales Price Limits
HOME Entitlement and Consortium Communities
DHCD CHDO Application
Housing Quality Standards (HQS)
Federal Lead Paint Rules
State Lead Paint Rules
Mass Historic Project Notification Form
HUD Environmental Review
Fair Housing Principles
For additional information, please call the HOME staff at: (617) 573-1300.