HOME Investment Partnerships Program (HOME)
The HOME program is a federal block grant program directed by the U.S. Department of Housing and Urban Development (HUD). Authorized under the Cranston-Gonzalez National Affordable Housing Act, the purpose of the program is to expand the supply of decent, safe, affordable housing for low-income households and strengthen public-private housing partnerships between Units of General Local Governments, Public Housing Authorities, nonprofits, and for profit entities.
The Redevelopment Agency of Provo City Corporation is responsible for administering the HOME Program as the Lead Entity of the Utah Valley HOME Consortium. As a Participating Jurisdiction, the Consortium may use funds for eligible activities such as Single Family Housing Development, Multi-family Housing Development, Homebuyer Assistance, Homeowner Rehabilitation, and Tenant-Based Rental Assistance.
What are Eligible HOME Activities?
HOME funds are designed to give communities greater flexibility to undertake a broad range of affordable housing activities. HOME funds can be used for:
- Acquisition of Property (For home ownership, rental or rehabilitation)
- Construction of New Housing; Rental or Home Ownership
- Land improvements and demolition of dilapidated housing stock associated with construction of new housing, rental or home ownership
- Relocation costs and payments for households displaced, temporarily or permanently by HOME projects and activities
- Financial assistance to low-income home buyers for rehabilitation and new home buyers for purchase
- Provide tenant-based rental assistance to low-income households. Targeted to special needs populations
- Meet HOME Program planning and administration expenses
HOME assistance is targeted to ensure the program serves the affordable housing needs of the families and individuals who most urgently need it: low—and very—low income. At least 90 percent of HOME funds for rental housing must be invested in units that are occupied by families earning no more than 60 percent of the Area Median Income limits (AMI), with the remaining families earning no more than 80 percent of AMI. AMI is calculated, adjusted by family size and published annually by HUD. Updated AMI limits for the Consortium can be found at: Provo/Orem AMI.
How are HOME Funds Distributed?
Of the total annual grant, up to 10% can be used for administration costs and 15% must be set aside for eligible Community Housing Development Organizations (CHDO). The remaining funds are awarded to nonprofit, government agencies and for profit organizations. Provo City administers its own down payment and closing costs assistance program, Home Purchase Plus, as well as the Loan-to-Own down payment and closing costs assistance program, which is available Consortium-wide. The Housing Authority of Utah County (HAUC) administers an Owner-Occupied Rehabilitation Loan Program Consortium-wide.
What is a CHDO?
Community Housing Development Organizations are private, nonprofit agencies organized under state or local law, accountable to the community they serve, and committed to and experienced in providing decent and affordable housing for low-income families and individuals. Eligible CHDOs meeting HUD’s qualifying criteria through the Utah Valley HOME Consortium are: Rural Housing Development Corporation (RHDC); Habitat for Humanity of Utah County and NeighborWorks Provo.
How HOME funds have been used:
Local priorities for HOME funds include assisting low-income families throughout the Consortium to achieve home ownership. The Loan-to-Own down payment assistance and closing costs program provides a loan to eligible and qualified families and individuals. The program adapts to current affordable housing needs and the market. The Consortium also seeks to preserve the affordable housing stock through owner-occupied rehabilitation loans. Administered by the Housing Authority of Utah County, the Consortium provides rehabilitation loans of up to $25,000 to restore the unit to acceptable housing standards.
Other HOME Projects:
The Consortium participates in the construction and rehabilitation of transitional housing for agencies such as Center for Women and Children in Crisis, House of Hope, Alpine House (clients for Wasatch Mental Health). Funding is also provided for the rehabilitation and construction of affordable rental housing units administered by Provo City Housing Authority and the Housing Authority of Utah County; these housing units benefit the elderly and special needs populations.