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HOME Investment Partnerships Program

HOME Investment Partnerships Program

Program Description

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.

Eligible Applicants

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.)

Funding Limits

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.

Loan Terms

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.

Selection Criteria

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.

One Stop Application

Current Notice of Funding Availability

Application Guidelines