Federal programs & compliance
HOME program
HUD's HOME Investment Partnerships program — formula-funded gap loans through state and local jurisdictions, governed by 24 C.F.R. Part 92.
Definition
HOME is the federal block grant for affordable-housing gap funding: formula allocations flow to state and local "participating jurisdictions," which typically re-lend them into deals as low-interest or residual-receipts soft loans. The authorizing statute is the HOME Investment Partnerships Act; the program rules are 24 C.F.R. Part 92.
HOME dollars import their own rulebook: High and Low HOME rent limits, affordability periods of up to 20 years enforced by covenant, per-unit subsidy caps, property standards, Part 5-based income determinations, URA acquisition and relocation coverage, and Davis-Bacon wages on projects with 12 or more HOME-assisted units.
Why it matters in an underwrite
HOME rents often come in below LIHTC ceilings on the same unit, and the most restrictive limit governs — so the unit-level rent matrix, not the loan pricing, is where HOME moves the underwrite. Occupied acquisitions add a URA relocation budget; crossing 12 assisted units adds certified payrolls. The loan is cheap, but the compliance tail — a covenant of up to 20 years and fixed-versus-floating unit designations that interact with a LIHTC average-income election — is the real price.
Sources & related guides
See also
See the term in the law itself
Read the controlling text in the Code Library, or ask the AI how it applies to your project.
Last reviewed 2026-07-29. General information, not legal advice.