Federal Funding Availability for Affordable Housing
Federal Home Investment Partnerships Program (HOME)
HOME funds can be used for affordable housing production and preservation, including construction, acquisition, and rehabilitation.
HOME has several other requirements that need to be considered. Funds must be tied to individual units monitored for up to 20 years, and there is an annual maximum subsidy per unit. If other federal funds are in a project, a subsidy layering review has to be completed before the commitment of funds. HOME supports deeply affordable units, with 90% of rental units at or below 60% AMI, and if more than five units are involved, 20% of them must be at or below 50% AMI. Homeownership projects can assist persons earning up to 80% AMI. HOME funds must also be proportional to the number of HOME units in a project. At 12 units, federal Davis Bacon wage rates apply.
HOME units are required to meet code enforcement requirements for the entirety of the monitoring period. If residents are displaced temporarily or permanently during the project, the Uniform Relocation Assistance and Real Property Acquisition Policies Act (URA) guidelines must be followed to ensure fair compensation and assistance.
Federal Community Development Block Grant (CDBG)
CDBG funds can be used for affordable housing acquisition and preservation, including rehabilitation. All CDBG projects must meet a National Objective and have an Environmental Review completed before any agreement can be executed. Of the units assisted in any project, 51% must be income-certified at or below 80% AMI at occupancy/financing. Federal Davis Bacon wage rates apply for all rehabilitation work if more than eight (8) units are included. If displacement of residents occurs temporarily or permanently during the project, the Uniform Relocation Assistance and Real Property Acquisition Policies Act (URA) guidelines must be followed to ensure fair compensation and assistance.