HOME FAQs

TopicQuestion
Broadband Infrastructure

Can HOME funds be used to pay for broadband infrastructure when constructing or rehabilitating a multifamily rental project?

 

Yes. Under § 92.206(a) in the HOME rule, HOME funds may be used for the actual costs of constructing or rehabilitating (development hard costs) single family or multifamily housing, including the costs to wire the property for broadband internet. The costs to make utility connections, including off-site connections from the property line to the adjacent street, are also eligible under HOME at § 92.206(a)(3)(ii). HUD includes internet connectivi...
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Broadband Infrastructure

Can HOME funds be used to pay for a computer room when constructing or rehabilitating a multifamily rental project?

 

Yes. As part of new construction and rehabilitation costs of multifamily rental projects, the HOME rule at § 92.206(a)(4) states that HOME funds may be used for costs to construct or rehabilitate community facilities that are located within the same building as the housing, and which are for the use of the project residents. HOME funds cannot be used to pay for a computer room located in a separate building from the assisted housing. While HOME ...
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Broadband Infrastructure

Can HOME funds pay for broadband internet connections to a multifamily rental project?

 

Yes. As part of a new construction or rehabilitation activity, the HOME rule at § 92.206(a)(3)(ii) states that HOME may pay for the development costs to make utility connections, including connections from the property line to the adjacent street. This includes broadband internet connections. However, HOME funds cannot be used for any off-site improvements, including running broadband internet cable or wires to the project site. Use of HOME fund...
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Broadband Infrastructure

Can HOME funds pay for costs related to computer equipment in a multifamily rental project?

 

No. HOME funds may not be used to pay for furniture or equipment for a computer room, even as part of a multifamily assisted rental property.

Broadband Infrastructure

Administration

Can HOME funds pay for required homebuyer counseling?

 

Yes, HOME funds can be used to pay for counseling that directly assists someone who purchases a home with HOME assistance. If the family receiving counseling successfully purchases a home with HOME funds, the counseling can be charged as a project related soft cost. However, this cost must be included within the total HOME subsidy limit for that home. If the family is unable to purchase a home with HOME funds, the cost of...
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Administration

Is a PJ allowed to use a contractor or nonprofit lender to administer its HOME homebuyer assistance program if that lender provides both the HOME financing and other mortgage financing to HOME-assisted homebuyers?

 

Yes, a PJ may allow a lending institution that is a contractor or nonprofit lending institution that is a subrecipient to provide both HOME homebuyer assistance and other mortgage assistance to a homebuyer as long as the PJ has implemented the following safeguards required by 24 CFR 92.254(f): The assistance is provided only as specified in a written agreement between the PJ and the lender. This agreement must specify the...
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Administration

The HOME Final Rule imposes a requirement that any homebuyer that receives HOME downpayment assistance or buys a HOME-assisted unit must have housing counseling. What type of homebuyer counseling does the HOME program require?

 

Any homebuyer that enters into a written agreement for HOME assistance (e.g., downpayment or closing cost assistance) or enters into a sales contract for the purchase of a HOME-assisted unit must receive housing counseling. See §92.254(a)(3). While the HOME regulation does not specify the type or duration of counseling that the homebuyer must receive, HUD recommends that participating jurisdictions (PJs) review and ado...
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Deadlines

In a multi-unit homebuyer project, if some units do not sell within the 12-month deadline, and local zoning restrictions prevent the conversion to rental, is the PJ required to repay the entire HOME investment or just the HOME funds invested in the unsold units?

 

The PJ is required to repay only the HOME funds that were invested in the unsold units. In this situation, the PJ must amend the project in the Integrated Disbursement and Information System (IDIS) and in its local records to remove the unsold units from the project. The PJ must repay the costs associated with the unsold units based on the original cost allocation used for the project (e.g., actual cost per unit or pro-rata cost allocation). In I...
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Deadlines

Under the HOME Program, in what timeframe must HOME homebuyer housing units be sold to income-eligible homebuyers?

 

For projects to which HOME funds are committed under the 2025 Final Rule (on or after April 20, 2025), a sales contract must be ratified* with an eligible homebuyer within 12 months of the date of completion of construction or rehabilitation. If a HOME-assisted homebuyer unit is not under a contract for sale within this timeframe, the unit must be converted to a rental housing unit and rented to an income-eligible tenant, or...
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Lease-Purchase

Are Community Land Trusts permitted to charge monthly ground lease fees to HOME-assisted homeowners?

 

Yes. Generally, Community Land Trusts (CLTs) may charge ground lease fees to HOME-assisted homeowners. However, HOME funds may not be used to pay for these fees because the ongoing costs of homeownership are not eligible HOME program costs. Ownership in fee simple title of a dwelling with a ground or land lease of 50 years or longer from a CLT meets the definition of Homeownership in §92.2 of the HOME rule. CLTs commonly charge monthly ground le...
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Lease-Purchase

Does the execution of a lease-purchase agreement meet the requirement to sell the HOME-assisted unit by the sales deadline established in 24 CFR 92.254?

 

Yes. Under the 2025 HOME Rule, if the participating jurisdiction (PJ) has an established lease-purchase program and an income-eligible tenant/homebuyer executes a lease-purchase agreement for a homebuyer unit by the 12-month sales deadline, the property is considered to be under contract and in compliance with the requirement. The agreement must comply with the HOME lease-purchase requirements specified at §92.254(a)(7). The...
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Eligible Applicants

In an owner-occupied rehabilitation program, is it permissible for a participating jurisdiction (PJ) to provide HOME assistance to a homeowner who has a “living trust” or a life estate on the property?

 

Yes. In addition to traditional forms of ownership interest (defined under “homeownership” at §92.2), the 2013 Rule identified four additional forms of ownership interest under which an owner can qualify for assistance for homeowner rehabilitation programs only, effective August 23, 2013. These include: Life estates Inherited property Inter vivos trust (i.e., a “living trust”) Beneficiary deeds For each of these new forms of ownership ...
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HOME and Public Housing

Can HOME funds be used for HOPE VI-funded public housing units developed under section 24 of the 1937 Act?

 

Yes. HOME funds may be used for HOPE VI-funded public housing units developed under section 24 of the 1937 Act, provided there is no Capital Fund assistance used. Units developed with both HOME and HOPE VI funds may receive Operating Funds under section 9 of the 1937 Act. These units may receive Capital Funds for rehabilitation or modernization only if the 20-year period of affordability required by the HOME regulations has expired. HOME rent lim...
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HOME and Public Housing

Can HOME funds be used in a project that is also receiving Capital Funds or Operating Funds?

 

Yes. HOME funds can be used in an affordable housing project that also contains public housing units assisted under section 9 of the 1937 Act provided that the units are separately designated and HOME funds are not used in the public housing units. No HOME funds can be used in a unit that receives public housing Capital and Operating Funds. Therefore, all development costs must be allocated to maintain the separation of units. This also means tha...
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HOME and Public Housing

Can HOME funds be used for acquisition, rehabilitation, or new construction of housing that is or will become public housing under Section 9 of the 1937 Act?

 

No. HOME funds cannot be used in public housing units that receive Public Housing Capital and Operating Funds under section 9 of the 1937 Act. The HOME authorizing statute specifies that HOME cannot be used to provide assistance to units that receive funds authorized under section 9 of the 1937 Act (Public Housing Capital and Operating Funds). For example, a participating jurisdiction (PJ) cannot provide HOME funds to a local public housing agenc...
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Leases and Occupancy

What are the lease-up and occupancy deadlines and associated marketing requirements for HOME-assisted rental units and how will HUD implement them?

 

The HOME Rule requires two specific deadlines for the initial lease-up/occupancy of HOME rental units: Within 6 months of the date of project completion, every HOME-assisted rental housing unit must be occupied by income-eligible tenants. If a unit is not leased up, the participating jurisdiction (PJ) must revise its marketing plan to enable the project to reach required occupancy. Within 18 months of the date of project...
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Tenant-Based Rental Assistance

Can a Public Housing Authority (PHA) use a PJ’s utility allowance schedule for their HOME Tenant-Based Rental Assistance (TBRA) Program?

 

Yes, PJs may use the utility allowance established by the local PHA in its TBRA program. PJs administering a TBRA program must establish a rent standard which represents the rent plus utility cost of moderately priced units that meet the PJ’s property standards under §92.251. Therefore, when tenants pay their own utilities, the PJ must establish a utility allowance amount that is deducted from the tenants’ rent payment to the...
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Tenant-Based Rental Assistance

How can HOME funds be used to assist individuals or households who are at risk of losing their transitional or permanent housing?

 

HOME funds cannot be used to pay ongoing operating costs for transitional or permanent housing projects to enable these projects to continue their operation. However, HOME can be used to assist tenants who are at risk of losing their housing, where the participating jurisdiction (PJ) has identified using HOME Tenant-Based Rental Assistance (TBRA) assistance to meet this unmet housing need to be consistent with the priorities and criteria establis...
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Real Estate Market Analysis

Do all projects require a market assessment, including small rental or homebuyer development projects?

 

The HOME Rule requires that prior to committing HOME funds, the participating jurisdiction (PJ) must evaluate the feasibility of all rental or homebuyer development projects regardless of size (number of units) or activity type (i.e., acquisition only, acquisition/rehabilitation, rehabilitation, or new construction). One component of this evaluation is an assessment of the current market demand in the neighborhood in which the project will be loc...
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Subsidy Layering

What are the HOME Program subsidy layering and underwriting requirements? Is underwriting required for both homebuyer and rental activities?

 

Participating jurisdictions (PJs) are required to undertake a subsidy layering and underwriting analysis of all development projects to which they provide HOME funds, rental and homeownership alike, with some exceptions described below. Subsidy layering and underwriting requirements for rental and homebuyer development projects (§92.250). The PJ must adopt subsidy layering and underwriting guidelines to ensure that it does...
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Set-Aside Funds

What is the definition of a CHDO rental developer?

 

The 2013 HOME rule defines a CHDO developer by requiring that the CHDO that serves as a developer of rental housing must be in sole charge of all aspects of the development of the property and must own the property during development and throughout the period of affordability. Previously, a CHDO could develop a property that it did not own, under contract with the property owner. This was changed in the developer definition in 24 CFR 92.300 under the 2013 Rule.

However, additional changes were made to the definition of CHDO developer in the 2025 HOME rule. Effective April 20, 2025, a CHDO is permitted to share developer responsibilities with another entity but must be in charge of all aspects of the development process, including selecting the site, obtaining permit approvals and all project financing, selecting architects, engineers and general contractors, overseeing project progress, and determining the reasonableness of costs. The CHDO must own the housing, meaning they are the owner in fee simple absolute or has a long-term ground lease running for the full period of affordability in 24 CFR 92.252.

Set-Aside Funds

Set-Aside Funds

Can CHDO set-aside funds be used to provide downpayment assistance?

 

Yes. When a CHDO provides downpayment assistance to a buyer of a property that it developed with CHDO set-aside funds, it can use additional CHDO set-aside funds to provide downpayment assistance to that buyer. The Rule limits this assistance to no more than 10 percent of the total amount of HOME development funds. The 10 percent limitation only applies when additional CHDO set-aside funds are used to provide the homebuyer assistance and to ...
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Set-Aside Funds

Can a PJ provide CHDO set-aside funds to a CHDO that has the capacity to own and manage rental housing, but does not have the capacity to develop a project?

 

Yes. The Rule codifies the definition of “owner” of rental housing to clarify that a CHDO may own and manage affordable housing in this way. The change to the definition of CHDO in 92.2 requires the PJ to determine and certify that the CHDO has the capacity to own and manage the rental housing. As an owner, a CHDO without development capacity can acquire an existing property that meets the HOME property standards (see §92.251) and then ...
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Set-Aside Funds

What types of activities qualify to use CHDO set-aside funds?

 

CHDO set-aside finds may be used for projects that are owned, developed, or sponsored by a nonprofit that qualifies as a CHDO as defined at 24 CFR §92.2. Previously, these roles were limited to development activities—that is, projects that involved acquisition, rehabilitation, and/or new construction of housing for sale or rent to low-income families. However, the 2013 HOME Final Rule amended the definitions of these roles and now nonprofits c...
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Housing Counseling

What HUD programs are subject to the Housing Counseling Program Final Rule?

 

The following HUD programs are those that include “housing counseling” as an eligible funding activity or project cost. Where “housing counseling,” as defined by this rule, is funded by the programs listed below, the housing counseling must be provided through an agency approved to participate in HUD’s Housing Counseling program and a HUD certified housing counselor. The Community Development Block Grant Program (42 U.S.C. 5301, et seq...
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Housing Counseling

What HUD programs require housing counseling through statute, regulation, Notice of Funding Availability, or otherwise required by HUD?

 

The following HUD programs are those where housing counseling is required by statute, regulation, Notice of Funding Availability, or otherwise required by HUD: Housing Counseling Program (12 U.S.C. 1701x);   Housing Choice Voucher Homeownership Option (42 U.S.C. 1437f(y));   HOME Investment Partnership – Homeownership only (42 U.S.C. 12701 et seq.);   Housing Trust Fund – Homeownership only (12 U.S.C. 4568(c));   FHA Sing...
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Housing Counseling

How is the HOME program affected by the Final Rule on housing counselor certification?

 

HOME as a HUD program where housing counseling is required by regulation: The HOME program regulations require that all homebuyers assisted with HOME funds must receive housing counseling. The housing counseling requirement applies to all HOME-assisted homebuyers, including homebuyers receiving HOME-funded direct homebuyer assistance (i.e., downpayment assistance) and homebuyers purchasing units developed with HOME funds. In all instances, rega...
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Income Determination

What passbook savings rate should PJs be using when imputing income from assets for the HOME program?

 

HUD’s Part 5 definition of annual income includes income assets. When the value of net family assets, as defined in 24 CFR 5.603, exceeds $50,000 (which HUD will adjust annually in accordance with the Consumer Price Index for Urban Wage Earners and Clerical Workers) and the actual returns from a given asset cannot be calculated, PJs must impute returns on the asset based on the current passbook savings rate, as determined by...
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Per Unit Maximum Subsidy

Where can I find the HOME maximum subsidy limits?

 

The HOME Rule gives HUD the authority to establish its methodology for determining the maximum per-unit subsidy limits through Federal Register notice, allowing for periodic changes or adjustments. After publication of this Federal Register notice, HUD will post the limits annually on the HUD.gov website....
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Property Standards

The 2025 HOME Final Rule and NSPIRE substantially revised property standards requirements for development projects. What are the changes?

 

The 2025 HOME Rule and NSPIRE applied several changes to all HOME projects, effective April 14, 2027. They are as follows: PJs must establish and implement standards which ensure correction of the minimum deficiencies established by HUD in the Federal Register Notice and based on NSPIRE. Requires PJs to establish written property standards for housing occupied by tenants receiving HOME TBRA. Rule aligns property standards...
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Property Standards

What are the energy efficiency standards required for HOME-assisted new construction projects?

 

Due to a March 5, 2026, Court decision vacating the 2024 Final Determination, all HOME-assisted new construction projects must meet the 2015 Final Determination standards upon completion: 

 
 

Content current as of July 10, 2026.