Grants to states and local governments to help them develop and support affordable housing for low and very-low income residents. These funds are awarded on a formula basis to states and units of general local government.

 

Nature of Program: Grants to states and local governments to help them develop and support affordable housing for low and very-low income residents. These funds are awarded on a formula basis to states and units of general local government.

Benefits: The purpose of the HOME Program is to expand the supply of decent, safe, sanitary, and affordable housing. Eligible uses of HOME funds are tenant-based rental assistance, assistance to homebuyers, property acquisition, new construction, reconstruction, rehabilitation, and transitional housing. The program serves individuals and families with incomes that fall at or below 80% of the median income for the area. The funds can be used for acquisition, rehabilitation, construction, and rent assistance. Fifteen percent of the allocation by federal rule is reserved for Community Housing Development Organizations (CHDOs). A CHDO is a nonprofit agency organized under state or local law, whose governing board membership and organizational structure reflect accountability to low-income residents. CHDOs must provide decent housing that is affordable to low income persons and have a history of serving the community.