# Presentation: 897700

## BUILDING HOME

**General **
**Program Rules**

## Program Rules

- The HOME Program is 4 programs in 1
- Homeowner Rehab
- Homebuyer
- Rental Development (New Construction or Rehab)
- TBRA (Rental Subsidy)

## Rules

**Program Wide Rules**

**Homeowner**
**Rules**

**Rental**
**Rules**

**Owner**
**Rehab**
**Rules**

**Homebuyer**
**Rules**

**Rental**
**Dev.**
**Rules**

**TBRA**
**Rules**

**Development**

## Program Wide Rules

- Defining a Project
- Form and Amount of Subsidy
- Eligible and Ineligible Costs
- Condition of Property
- Maximum Income
- Concept of Affordability
- Federal Cross-Cutting Requirements

## Definition of a Project

- Site(s) under common ownership, management and financing
- One or more families under one TBRA program
- Assisted with HOME funds as a single deal
- A single set up in IDIS

## Form of Subsidy

- Lots of choices
- Loans
- Interest or no interest
- Payments or no payments
- No payments for a while, then payments
- Forgiven over time
- Grants
- Interest Subsidies
- Equity Investments
- Loan Guarantees

## Amount of Subsidy

- Minimum = $1,000 per unit (not TBRA)
- Maximum = 221(d)(3) limit
- Available only from HUD hub office multifamily division
- Contact local field office for assistance

## Eligible Costs

- New Construction
- Rehabilitation
- Standard Rehab
- Reconstruction
- Conversion
- Acquisition
- Vacant Land
- Improved Land

## Eligible Costs (continued)

- Site Improvements
- Demolition
- Relocation
- Refinancing
- Project Soft Costs
- Project Delivery Costs (except TBRA)

## Ineligible Costs

- Reserve Accounts
- TBRA in Certain Units
- Match for Other Federal Programs (except McKinney)
- Public facilities
- Assistance to:
- Public Housing

## Ineligible Costs (continued)

- Acquisition of PJ-Owned Property (unless acquired for a HOME project)
- Project Based Rental Assistance

## Condition of Property

- HOME $ is spent  “standard” unit
- Different definitions of “standard” for different activities
- 3 Types of Codes Apply
- Building Codes
- Housing Codes or Standard
- Rehabilitation Standards

## Maximum Income

- 100% of HOME $ help people _<_ 80% MFI
- Lower income guides for some activities
- Note:  different than CDBG

## What Counts as Income?

- 3 Definitions
- Section 8
- IRS Adjusted Gross Income
- Census Long Form
- Source Documents
- Anticipated Income

- HOME Model Guide: Technical Guide for Determining Income and Allowances for the HOME Program: Second Edition (HUD 1780, June 1999)

## Income Basics

- Anticipate income for next 12 months
- Verify -- 3rd party or review of documents
- Compare income to low income limits to determine eligibility
- Recertify annually

## Part 5 Definition

- For eligibility look at gross income
- Income of all adults
- Follow list of income inclusions and exclusions
- Consider income from assets

## Census Long Form

- Look at list of income inclusions and exclusions
- Assets treated differently than Part 5

## IRS 1040

- Has list of income inclusions
- Also has deductions for adjusted gross income
- Assets different than under Part 5

## Concept of Affordability

- Appropriate return on federal investment
- Amount of HOME $ establishes time period
- Big HOME investment = long period of time
- Small HOME investment = short period
- Period of Affordability =                  Period of Compliance

## Affordability / Compliance

## Additional Funding for Projects Affordability/Compliance Period

## Federal Cross-Cutting Regs

- HOME Reg lists other regs that apply
- Refer to other regs for applicability
- List includes regs about:
- Non-Discrimination and Equal Access
- Employment and Contracting
- Environmental
- Lead Based Paint
- Relocation