It is important to recognize, however, that this increase is insufficient to make up for inflation since the Housing Credit volume cap was previously set in 1986. In light of both the growing housing shortage and the overwhelming bipartisan consensus that Housing Credit is both effective and efficient, we urge Congress to expand the volume of Housing Credits further. Moreover, most Housing Credit deals and virtually every one in low-income communities require additional public funds to fill financing gaps. The HOME program is the primary resource for filling those financing gaps. It is important that HOME funding expand along with Housing Credits to ensure that the overall housing production system can expand smoothly.
HOME is a proven, flexible and extremely cost-effective housing production program.
HOME works effectively in both urban and rural communities. HOME now finances over 80,000 affordable rental and ownership homes annually . HOME is a block grant that works through states and localities . It is flexible in meeting local needs for both homeownership and rental housing. HOME may be used in the construction of new housing as well as the rehabilitation and preservation of existing housing.