COMMUNITY PLANNING AND DEVELOPMENT, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

AUTHORIZATION:

National Affordable Housing Act, Title II, 1990, as amended.

OBJECTIVES:

(1) To expand the supply of affordable housing, particularly rental housing, for low and very low income Americans; (2) to strengthen the abilities of State and local governments to design and implement strategies for achieving adequate supplies of decent, affordable housing; (3) to provide both financial and technical assistance to participating jurisdictions, including the development of model programs for developing affordable low income housing; and (4) to extend and strengthen partnerships among all levels of government and the private sector, including for-profit and nonprofit organizations, in the production and operation of affordable housing.

TYPES OF ASSISTANCE:

Formula Grants.

USES AND USE RESTRICTIONS:

For use by participating jurisdictions or Insular Areas for housing rehabilitation, tenant-based rental assistance, assistance to homebuyers, acquisition of housing and new construction of housing. Funding may also be used for other necessary and reasonable activities related to the development of non-luxury housing, such as site acquisition, site improvements, demolition and relocation. Ten percent of a participating jurisdiction's allocation may be used for administrative costs. Funds may not be used for public housing modernization, matching funds for other Federal programs, reserve accounts or operating subsidies for rental housing, Annual Contributions Contracts, or activities under the Low Income Housing Preservation Act except for priority purchasers.

ELIGIBILITY REQUIREMENTS:

Applicant Eligibility:   States, cities, urban counties, and consortia (of contiguous units of general local governments with a binding agreement) are eligible to receive formula allocations; funds are also set aside for grants to Insular Areas.

Beneficiary Eligibility:   For rental housing, at least 90 percent of HOME funds must benefit low and very low income families at 60 percent of the area median income; the remaining ten percent must benefit families below 80 percent of the area median. Assistance to homeowners and homebuyers must be to families below 80 percent of the area median.

Credentials/Documentation:   Costs will be determined in accordance with OMB Circular No. A-87 for State and local governments. Specific requirements of 24 CFR part 85 apply to participating jurisdictions, State recipients and any governmental subrecipient receiving HOME funds. OMB Circular No. A-122 and specific requirements of 24 CFR part 84 apply to nonprofit subrecipients which are not governmental.

APPLICATION AND AWARD PROCESS:

Preapplication Coordination:   HUD produces an annual list of each jurisdiction's formula allocation. This program is excluded from coverage under E.O. 12372.

Application Procedure:   Submit a Consolidated Plan, an annual action plan and certifications to HUD. The Consolidated Plan and annual action plan cover four major formula-distribution HUD community development programs, including HOME. The annual action plan must describe how the funds will be used.

Award Procedure:   The responsible HUD field office notifies grantees of award.

Deadlines:   Action plans should be submitted to HUD at least 45 days before the start of the program year. In no event will HUD accept a submission earlier than November 15 or later than August 16 of the federal fiscal year for which funds are allocated.

Range of Approval/Disapproval Time:   HUD will review for completeness and consistency with the purposes of the Act, within 45 days of receipt from a jurisdiction.

Appeals:   Formula allocations may not be appealed.

Renewals:   Every fifth year, localities submit a Consolidated Plan. Each year jurisdictions must submit an action plan and certifications.

ASSISTANCE CONSIDERATIONS:

Formula and Matching Requirements:   The formula is a system of factors established to reflect a jurisdiction's need for an increased supply of affordable housing for low and very low income families. Designed by HUD to meet statutory criteria, it is based on a jurisdiction's inadequate housing supply, substandard housing, the number of low income families in housing units likely to be in need of rehabilitation, the cost of producing housing, poverty, and the relative fiscal incapacity of the jurisdiction to carry out housing activities without Federal assistance. Each jurisdiction must make matching contributions to affordable housing throughout a fiscal year in an amount not less than 25 percent of the HOME funds drawn from the U.S. Treasury during the federal fiscal year for projects. Jurisdictions in fiscal distress receive full or partial (50 percent) relief from this requirement.

Length and Time Phasing of Assistance:   Grant funds are drawn down from the U. S. Treasury based upon individual project development progress. The HOME program uses an electronic fund transfer disbursement and information system. Once drawn down, funds must be expended within fifteen days. All funds must be committed within 24 months and expended within five years.

POST ASSISTANCE REQUIREMENTS:

Reports:   Financial management and annual performance reports.

Audits:   In accordance with 24 CFR Part 44 and OMB Circular No. A- 133.

Records:   Records which enable HUD to determine whether the participating jurisdiction has met the requirements of the program must be kept for the most recent five year period. Those records required to document the period of affordability must be maintained for five years beyond the required period.

FINANCIAL INFORMATION:

Account Identification:   86-0205-0-1-999.

Obligations:   (Grants) FY 99 $1,550,300,000; FY 00 est $1,552,800,000; and FY 01 est $1,595,780,000.

Range and Average of Financial Assistance:   $288,000 to $104,000,000; $2,641,766. (NOTE: Amounts reported reflect allocation of new budget authority rather than obligation amounts.)

PROGAM ACCOMPLISHMENTS:

As of September 30, 1999, 464,000 units were committed; 266,000 units completed; and 55,000 families have received tenant-based rental assistance.

REGULATIONS, GUIDELINES, AND LITERATURE:

24 CFR Part 92.

INFORMATION CONTACTS: