The primary purpose of the HOME Program is to expand the supply of decent, safe, sanitary, and affordable housing for very low-income and low-income households. The HOME Program provides funds to developers and/or owners for acquisition, new construction, and rehabilitation of affordable housing.
The U.S. Department of Housing and Urban Development provides annual funding to participating jurisdictions (SDHDA) to develop their own programs in partnership with local governments, nonprofit organizations, and the private sector.
HOME funds may be invested in both rental and homeownership activities; however, rent restrictions, affordability periods, occupancy requirements, property standards, low-income benefit requirements, and other federal requirements must be fulfilled.
At the discretion of SDHDA and where allowable under federal law, activities allowed under HOME may include:
- Homebuyer Programs
Assistance to qualifying homebuyers in purchasing a home, including those related to gap financing, lease-purchase, and self-help type programs.
- Homeowner Rehabilitation
Rehabilitation of owner-occupied housing under the Homeowner Rehabilitation set-aside awards administered by the Community Action Program (CAP) agencies or qualified nonprofit entities to enhance the rehabilitation of single family homes.
- Rental Acquisition and/or Rehabilitation
Acquisition or refinancing of affordable housing projects (permanent or transitional) that need rehabilitation and require financial assistance to maintain the affordable status of the project.
- Rental Acquisition/Conversion
Acquisition and conversion of a non-residential structure to an affordable housing project (permanent or transitional). Conversion of an existing non-residential structure to affordable housing is considered rehabilitation or reconstruction, unless the conversion entails adding one or more units beyond the existing walls, in which case the project is then considered new construction.
- Rental New Construction
New Construction of affordable housing projects (permanent or transitional) in which costs to acquire the land and meet the construction codes in effect at the time a building permit is obtained from the locality.
To apply for HOME funds visit www.sdhda.org.