HOME Program
Affordable housing is more than a roof over someone’s head; it is foundational for strong communities with bright futures, and the HOME Investment Partnerships Program (HOME Program) makes it possible for millions of Americans. As the largest federal block grant dedicated solely to creating affordable housing, HOME supports state and local governments in providing safe, decent, affordable housing for low-income families.
In this article, we’ll explore the HOME program in depth, covering essential topics including how it operates, who it serves, and its impact nationwide. We’ll also discuss the program’s funding, key partnerships, eligibility criteria, challenges, and future potential.
What Is the HOME Investment Partnerships Program?
First established under the Cranston-Gonzalez National Affordable Housing Act of 1990 (Title II), the HOME Investment Partnerships Program is a federally funded initiative administered by the U.S. Department of Housing and Urban Development (HUD); it aims to expand the supply of affordable housing for low-income American families through flexible, community-driven funding mechanisms.
The HOME program supports a wide range of activities—from building and rehabilitating housing units to providing direct rental assistance and helping first-time homebuyers—and has improved the economic standing of thousands of individuals. It prioritizes local decision-making, empowering participating jurisdictions (state and local governments) to design programs that address their unique housing needs.
The families and individuals this program is designed to support include:
- Low-income families and individuals (people earning 60% or less AMI).
- First-time homebuyers who need assistance with their down payment or closing costs.
- Tenants at risk of homelessness or displacement.
- Developers and nonprofits committed to affordable housing solutions.
Objectives of the HOME Program
Driven by only a few clear–yet powerful–goals, the HOME Program aims to:
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At its core, HOME seeks to increase the availability of hospitable, affordable housing for low-income Americans. This includes building new units, rehabilitating existing ones, and preventing the loss of affordable stock.
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HOME funds are distributed directly to states, cities, urban counties, and consortia to give local governments the necessary tools to address specific housing needs and spur community development. This decentralized approach ensures funds are spent where they’re needed the most.
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The program encourages collaboration between public and private sector developers, local nonprofit groups, and community organizations. These partnerships are essential for developing creative, sustainable, cost-effective housing solutions.
How the HOME Program Works
Each year, Congress appropriates HOME Investment Partnerships Program funds, which HUD determines how to distribute to participating jurisdictions. Program funds are allocated based on factors like population, poverty levels, and housing conditions.
Once allocated, HOME funds can be used for a broad range of housing-related eligible activities, such as:
- Affordable new construction homes or rental housing
- Rehabilitation financing assistance for existing housing stock
- Rental assistance to low-income households
- Down payment and closing cost assistance for homebuyers
What makes the HOME program particularly valuable is its flexibility. By utilizing HOME funds, jurisdictions can implement strategies tailored to meet local needs, such as investing in rental housing projects, supportive services for homeownership, or preserving aging buildings.
In 2024 alone, HOME Program funds contributed to $13 million awarded and 173 homes built in Georgia.
HOME Program Grants and Funding
HOME funds are not “one-size-fits-all.” Instead, they support a variety of grant types and financing tools that can be mixed and matched depending on the project.
Below are the six categories of eligible activities. Participating Jurisdictions can use HOME funds as grants or loans to pay eligible costs within each category.
- New Construction of Owner-Occupied Housing
- Rehabilitation of Owner-Occupied Housing
- Assistance to Homebuyers
- New Construction of Rental Housing
- Rehabilitation of Rental Housing
- Tenant-Based Rental Assistance (TBRA)
Participating jurisdictions must contribute a 25-cent match to every dollar in program funds to mobilize community resources supporting affordable housing. Additionally, at least 15% of funds must be reserved for Community Housing Development Organizations (CHDOs), nonprofits that HUD certifies.
In Hot Springs, Arkansas, HOME funding awarded in 2016 helped turn a property that had been vacant for years into a thriving apartment community for low-income seniors, effectively revitalizing the neighborhood.
HOME HUD and Local Partnerships
One of the greatest advantages of the HOME program is the way it strengthens partnerships at the federal and local levels. HUD provides oversight and funding, but state and local governments, along with nonprofits, developers, and community advocates are in the nitty gritty every day executing projects.
These partnerships fuel innovation. For example, many eligible jurisdictions combine HOME funds with Low-Income Housing Tax Credits (LIHTC), state grants, or philanthropic contributions to increase impact.
Denver Urban Renewal Authority (DURA)‘s work in the city of Denver is an excellent example of one of these partnerships. They took a vacant lot on Welton Street, transformed it into office space, and provided affordable housing through 22 income-restricted apartments.
Then there’s the Kuhlman Building rehabilitation project, which includes 49 affordable housing units, and the St. Anthony Block 9 project at Sloan Lake, which includes 176 affordable rental units for seniors.
Impact of the HOME Program
Since its inception in 1992 to the end of FY2024, approximately $39.8 billion has been invested in HOME projects, with more than 1.3 million units of affordable housing constructed, rehabilitated, or acquired. Altogether, this equates to more than 1.8 million homes and TBRA-assisted households benefiting from HOME funds.
As the largest federal block grant to states and local governments designed exclusively to provide housing for low-income people, the HOME Program and its impact go beyond just the numbers. It’s impacting real, human lives. Families escaping homelessness now have permanent homes. Seniors on a fixed income can peacefully age in place with dignity. First-generation homebuyers can begin to create generational wealth.
It is not just about building houses; HOME builds stability, equity, and opportunity.
Eligibility for the HOME Grant Program
Participating Jurisdictions, commonly referred to as PJs, are states or local governments that receive annual HOME allocations directly from HUD. In order to qualify, jurisdictions must meet minimum funding thresholds and complete HUD’s planning and reporting requirements.
Regulatory Update: On January 6, 2025, HUD issued a new Final Rule designed to update and streamline the HOME Program. However, following a January 20 presidential directive, the rule’s effective date has been delayed to April 20, 2025, to allow for further review of its legal and policy implications. Until then, the current HOME Program rules remain in effect.
Further Rule Delays Announced: HUD issued an additional update on April 17, 2025, to further delay select portions of the new HOME Final Rule. Provisions related to tenant protections (§ 92.253) and green building incentives (§ 92.250(c)) will now take effect October 30, 2025. Compliance deadlines for certain sections have been pushed to April 20, 2026, and one provision (§ 92.250 related to maximum subsidies) has been withdrawn entirely. These delays ensure jurisdictions have time to review and prepare for the updated requirements while HUD gathers more public input.
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State Eligibility
- All 50 states are automatically eligible to become PJs.
- States receive either their calculated formula allocation or $3 million, whichever is greater.
Local Government Eligibility
- Only metropolitan cities and urban counties are eligible to apply directly.
- Must qualify for a minimum allocation of $500,000.
- Must contribute at least $750,000 toward affordable housing activities (can include HOME funds and other resources).
- Must have a local public housing authority and demonstrate the capacity to administer HOME-funded projects.
- HUD may revoke a locality’s PJ status if funding thresholds are no longer met.
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Learn how to become a Participating Jurisdiction
If a locality doesn’t meet the requirements to become a PJ, it can combine with other neighboring jurisdictions to form a consortium. This allows smaller communities to access HOME funds collectively.
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Get Involved in Your Community’s Housing Strategy
To receive and manage HOME funds, a PJ must submit a HUD-approved Consolidated Plan that covers a 3–5 year period, outlines the jurisdiction’s housing needs and goals, details how HOME and other HUD programs will be used, and includes a strategy for leveraging private and non-federal resources.
Because the HOME Program is geared towards meeting local community needs, federal regulations require community engagement to gain access to these funds. PJs must include a citizen participation plan and actively involve local residents, specifically low-income families, in the planning process.
To maintain compliance and continue receiving HOME funds, PJs must align their Consolidated Plan and implementation strategies with HUD’s Final Rule, which is published in the Federal Register. The Final Rule governs the HOME program with specific guidance on program design, income targeting, affordability periods, and eligible activities.
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Find HOME Program Contacts in Your Area
While the HOME Program serves low-income people and families, specific criteria apply depending on the type of assistance.
Rental Housing & Rental Assistance
- At least 90% of assisted households must earn 60% or less of the AMI.
- In rental projects with five or more HOME-assisted units, at least 20% of units must be reserved for households earning 50% or less of AMI.
Homeownership Assistance
- Households can earn no more than 80% AMI.
- Must also meet additional requirements set by the local PJ, such as completing HUD-approved homebuyer education
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HUD doesn’t provide funds directly to individuals. Households, developers, or nonprofits interested in utilizing HOME Investment Partnership Program funds must apply through their state or local PJ. Because local eligibility rules, deadlines, and funding opportunities may vary, it’s best to contact your city or state housing agency to learn more.
Shape the Future of Affordable Housing in Your Area
By investing in affordable housing at the local level, HOME empowers families, strengthens neighborhoods, and builds a pathway to stability and opportunity. Contact Navigate Affordable Housing Partners today to learn more and get involved!
