1. HOME Program Current Issues
COSCDA Conference
March 2015

2. HOME Budget & Production Trends
HOME FY 2015 Appropriation: $900 Million
51% decrease since FY 2010 ($1.804b)
FY 16 Request - $1.050 billion (+16%)

3. FY Appropriations

4. Effect of Reduced Appropriation
Minimum statutory qualification/participation thresholds for PJs - $500,000/$750,000
At $900m, 289 of 645 PJs receive allocations <$500,000 (49% of local PJs; 45% of all PJs)
60 PJs < $250,000

5. HOME and LIHTC
In calendar years , $2.05 billion of HOME funds was invested in 1,707 LIHTC projects (based on HOME completions):
Producing 86,119 total rental units
At an average HOME investment of $1.2 per project

6. HOME Four-Year Accomplishments
FY 2011
FY 2012
FY 2013
FY 2014
Rental Units
39,162
28,779
20,929
20,540
Homebuyer Units
21,593
20,129
15,350
12,854
Homeowner rehab Units
9,137
9,017
10,547
6,431
Total units Completed
69,892
57,925
46,826
39,825
TBRA Households Assisted
15,683
15,929
12,363
11,744

7. FY Accomplishments

8. Cumulative / FY 2014 Tenure Type

9. CHDO Reservations & Expenditures
New HOME Rule changes effective 1/1/15:
Non-project-specific reservations to CHDOs no longer count toward:
The 15% CHDO set-aside requirement; and
As a commitment toward the overall commitment requirement.
Established a separate 5-year CHDO expenditure deadline

10. Corresponding Report Changes
Deadline Compliance Status Report for 2015 deadlines:
Commitment requirement for grants through 2013
Includes new CHDO commitment requirement
Disbursement requirement for grants through 2010
Includes new CHDO disbursement requirement
CHDO reservation requirement removed
New guidance to be issued shortly

11. HOME Commitment Change
GAO issued opinion that HUD’s current “cumulative method” violates Sec 218(g) of NAHA, which establishes 24-month commitment requirement.
HUD must implement commitment and CHDO reservation requirements on a grant-specific basis
HUD drafting proposed rule to implement grant-specific method

12. HOME Commitments
PJs must commit funds from each specific grant within 24 months
15% of each grant must be used for CHDO set-aside project (no more cumulative average)
HOME funds uncommitted after 24 months cannot be recommitted
Cancelled projects
Projects completed below budget
Change to treatment of program income required

13. HOME Commitments
HUD anticipates significant increase in deobligations for:
Failure to commit timely
Funds becoming uncommitted after deadline
New methodology may apply as early as FY 15 grants with deadlines occurring in 2017