| The FHA has a program called HOME and is the | | | | what HUD has characterized as the median family |
| largest Federal Block grant designed to create | | | | income in this area. When there is a rental property |
| affordable housing to low-income households. Every | | | | with five or more assisted tenant families, at least a |
| year there is about $2 billion that is allocated for states | | | | fifth of these units are required to occupied by families |
| to help establish value and principles of community | | | | that do not exceed the 50 percent income median. For |
| development. | | | | all households receiving HUD assistance the incomes |
| Home provides grants to States and communities to | | | | must not be greater than 80% of the area median. |
| fund activities and programs that build, buy, and | | | | Each year you can find the income limits for HOME as |
| rehabilitate affordable housing for rent or purchase for | | | | they are published by the HUD. |
| individuals in the low-income bracket. The funds are | | | | Activities that are eligible with HOME include: purchase |
| awarded annually as formula grants to participating | | | | or rehabilitation for current homeowners or new |
| states, communities, and areas. | | | | households. Assistance may also be received for |
| The HOME program also establishes trusts for | | | | rehabilitation or purchase of properties to be used as |
| grantees providing them with a line of credit which can | | | | rental homes. These funds may also be used for other |
| be draw upon as needed. The flexibility in this program | | | | reasonable expenses such as demolition of former |
| allows for local governments to use this funding for | | | | buildings or relocation as well. Up to 10% of the funds |
| direct loans, loan guarantees, and may also be used | | | | may be used for program planning and administration. |
| for security deposits and other rental assistance | | | | Participating jurisdictions must match every dollar of |
| needed. | | | | HOME funding it receives with 25 cents from a non |
| There are many different eligibility guidelines for the | | | | federal source for such things as donated materials, |
| HOME assistance including different elgibility | | | | labor, property, and other needed resources. The |
| requirements for rental or household purchase. In the | | | | match program may be dropped from 25 cents is the |
| case of renting, at 90 percent of the families that | | | | participating jurisdiction is located in a declared disaster |
| benefit from HOME should not exceed 60 percent of | | | | area or if they are distressed. |