The Home Investment Partnerships Program (HOME) is a major federal grant designed to create affordable housing for low-income families. It helps state and local governments fund the construction, rehabilitation, and purchase of affordable homes, along with providing rental assistance. By addressing housing needs across urban and rural areas, HOME plays a crucial role in helping more Americans secure safe, affordable housing.
Since launching in 1992, the HOME program has created over 1.33 million homes and provided rental assistance to around 275,000 families annually. The program primarily supports households earning less than 60% of the area median income (AMI). For instance, in regions where the AMI is $60,000, a family of four earning $36,000 or less may qualify for assistance.
We’ll tell you how the HOME program works, who it helps, and how to sign up.
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What does the Home Investment Partnerships Program offer?
The Home Investment Partnerships Program (HOME) helps low-income families access affordable housing by funding key initiatives at the local and state levels. Funds from the Home Investment Partnerships Program are used in a variety of ways to promote affordable housing:
Rehabilitation: Local governments use HOME funds to rehabilitate existing housing units, improving their safety, efficiency, and habitability for low-income residents.
New construction: The program provides grants for the construction of new affordable housing developments, increasing the overall availability of affordable units.
Homebuyer assistance: HOME grants help low-income individuals and families purchase homes by covering down payment and closing costs.
Rental assistance: The program also provides tenant-based rental assistance (TBRA), which helps families cover the cost of renting homes in the private market.
Who is eligible for the Home Investment Partnerships Program?
The Home Investment Partnerships Program focuses on helping families with lower incomes. Here's how it works:
Targeted income groups: It mainly helps households earning up to 80% of the Area Median Income (AMI).
Priority for rental projects: At least 90% of rental units funded through HOME must go to families earning less than 60% of the AMI, ensuring the neediest families are prioritized.
Real-life example: In a region where the AMI is $60,000, a family of four earning $48,000 could qualify for homebuyer or rental assistance, while rental projects would serve families making $36,000 or less.
How much can you get through the Home Investment Partnerships Program?
The amount of assistance available through the Home Investment Partnerships Program depends on the local housing market and the specific type of assistance needed:
Homebuyer assistance: HOME can cover a portion of down payment and closing costs, sometimes up to tens of thousands of dollars, depending on the home price.
Rental assistance: The program helps low-income renters by ensuring that they do not pay more than 30% of their income toward rent. For instance, a family earning $30,000 per year might pay $750 per month in rent, with HOME covering the remainder.
Rehabilitation and construction: States and local governments receive substantial grants to rehabilitate or construct affordable housing, helping to increase the supply of safe, affordable homes.
How do I sign up for HOME program?
Getting started with the Home Investment Partnerships Program involves a few key steps:
Check eligibility: First, confirm that you meet the income requirements.
Find local agencies: HOME is managed by state and local governments. Reach out to your local housing authority or community development agency for information on available programs and the application process. For contact details and more info, visit the U.S. Department of Housing and Urban Development (HUD) website.
Apply for assistance: Submit your application to the appropriate local agency. This typically involves providing proof of income, household size, and other relevant documents. The agency will review your application and determine your eligibility.
Follow up: Stay in touch with the local agency to track your application status and address any additional requirements or documentation they may need.
Note: If your application is rejected, reach out to the local housing authority for feedback on the reasons and inquire about the possibility of reapplying or appealing the decision.
How is the HOME program different from Section 8?
The HOME program and Section 8 both provide affordable housing but have different focuses. HOME offers grants to create or rehabilitate affordable housing for low-income families, supporting both renters and homebuyers. Section 8 provides rental vouchers to help low-income families, the elderly, and disabled individuals afford private market rentals.
You can qualify for both programs if you meet the requirements. For instance, you could receive Section 8 rental assistance while living in a HOME-funded property, with Section 8 covering part of your rent and HOME ensuring the property stays affordable. Qualification depends on local availability and funding.
Does participating in HOME affect taxes or other benefits?
No, participating in the Home Investment Partnerships Program (HOME) generally does not directly affect your taxes or other benefit programs. The HOME program is focused on providing affordable housing, so the assistance you receive is usually considered separate from income tax or other welfare benefits.
However, it's always a good idea to check with a tax professional or benefits counselor to understand any potential indirect effects, such as how rental assistance might impact your overall financial picture or eligibility for other programs.