1. HOME Program Update NCDA Conference January 22, 2015

2. FY 2015 HOME Budget Picture HOME FY 2015 Appropriation: $900 Million 47% Decrease since FY 2010 Administration budget proposed eliminating continuous grandfathering/reduce # of local PJs Local PJs receiving less than $500K in 3 years of 5-year Con Plan cycle would lose PJ status If appropriation increased, PJs receiving allocations >$500K would re-enter program 2

3. HOME Four-Year Accomplishments 3 FY 2011FY 2012FY 2013FY 2014 Rental Units39,16228,77920,92920,540 Homebuyer Units21,59320,12915,35012,854 Homeowner rehab Units9,1379,01710,5476,431 Total units Completed69,89257,92546,82639,825 TBRA Households Assisted15,68315,92912,36311,744

4. Cumulative / FY 2014 Tenure Type 4

5. 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 5

6. 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 6

7. 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 7

8. FIFO Change First-In-First-Out Disbursements – For FY15 & subsequent grants, IDIS will no longer function FIFO. FY 14 and prior grants will continue FIFO – PJ will commit HOME funds from a specific year’s grant to a project. When PJ draws funds for that project, funds specifically committed to those projects will be disbursed through IDIS. – Guidance on new IDIS functionality coming soon. 8

9. HOME Rulemaking HOME Rule published July 24, 2013 – Most provisions apply prospectively to projects committed after 8/23/13 – Provisions w/delayed effective dates now effective Separate CHDO expenditure deadline CHDO funds must be committed to project Property Standards, Inspections, Utility Allowances – were to go into effect 1/24/15 – delayed – Technical Corrections due to be published shortly 9

10. Additional HOME Rulemaking Conforming changes to HOME rule will be made through upcoming regulations issued for: – New Violence Against Women Act (VAWA) provisions – 2 CFR Part 200 Changes HUD expects to draft another proposed rule for HOME to include: – HERA exception to HOME rents for units occupied by HCV holders – Alternative to 221(d)(3) limits – Tweaks to July 2013 rule provisions 10

11. Applicability Charts issued New/Revised CPD Notices – Deadline Compliance – updated for new rule – Interim policy on Max. Per Unit Subsidy Limit – Requirements for Committing Funds – Match – updated for new rule – Cost Allocation – Homebuyer Policies and Underwriting – Project Underwriting and Subsidy Layering – CHDO Qualifications and Roles Upcoming HOME Guidance Slide 11

12. CHDO Workshops (for CHDOs and PJs) – 25 Workshops Spring 2014 – Fall 2014 – HUD provided travel scholarships to more than 200 CHDOs Updated Building HOME deliveries have begun – 25 Workshops Fall 2014 – Spring 2015 – Building HOME is going online HOME Regulations Cert and Admin Cert courses: 2015 Project Underwriting & Subsidy Layering: 2015 Underwriting Homebuyers: Winter 2015 HOME TA & Training Slide 12

13. For information on HOME training, policy guidance, TA products, visit www.hudexchange.info www.hudexchange.info Sign up for HOME listserv https://www.hudexchange.info/mailinglist/ Where to Find It Slide 13