New HOME Final Rule September 18, 2013 Timing: This module (through “General Program and Administrative Changes”) will take approximately 90 minutes. Key points: Have this slide up and visible before the briefing session begins. Confirm with HUD staff how the introductions will be handled.

Background September 1996: HOME final rule published December 2011: Proposed rule published February 2012: Public comment period closed HUD received 322 public comment letters July 24, 2013: new HOME final rule published Key points: This is first significant rulemaking for the HOME program in many years. HUD requested and received many comments on the proposed rule published in 2011 and spent significant time and effort reviewing and considering the concerns of PJs and other stakeholders before issuing the final rule in July of this year. Encourage participants to read the rule and the preamble for a better understanding of the purpose of the changes.

Context Recent housing and credit market conditions Administrative and management challenges Management of growing HOME project portfolios Complexity of PJ program designs Reduced availability of federal, State, and local funds and limited private lending Key points: The changes reflected in the new rule are informed by what HUD and HOME PJ’s have learned over the past 20 years of administering the HOME program. PJs have encountered new administrative and management challenges, challenges that have been magnified by the current housing and credit market conditions. PJ’s have adopted more and more complex program designs. PJ’s face reductions in federal, state and local funding and more limited access to private lending. As a result of resource constraints, PJs are experiencing workforce reductions across the county.

Goals & Objectives of Rule Clarify existing regulatory requirements Establish new requirements that: Enhance accountability and performance Achieve more timely production of housing Improve monitoring and oversight Incorporate best practices as required procedures Address CHDO capacity/performance issues Achieve alignment with other federal housing programs, where possible Key points: The HOME Rule has not been updated since 2004, and the last major re-write goes back nearly two decades. Many clarifications, technical tweaks, and updates have accumulated and are now finally being incorporated into the Rule. Some changes are simply codifying policy that had been issued in HOMEFires, notices, and other guidance. New requirements have been added that aim to enhance accountability and performance, achieve more timely production of HOME-funded housing, improve monitoring and project and program oversight, incorporate best practices, and address CHDO capacity and performance issues. Still other new and revised requirements seek to achieve alignment with other federal housing programs.

Key Changes Program and Project Timeframes Property Standards Match CHDO Reservation Homebuyer Program Design Written Agreements Subsidy Layering & Underwriting Oversight of Rental Projects Written Policies & Procedures New and revised CHDO Roles Project Completion Definition CHDO Capacity Key points: Review this list only briefly. These are the general topics of the changes. Point out that we will touch on the changes that fall under each of these topics.