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24:24:1.1.1.1.41.1.63.1 24 Housing and Urban Development     92 PART 92—HOME INVESTMENT PARTNERSHIPS PROGRAM A Subpart A—General   § 92.1 Overview. HUD       This part implements the HOME Investment Partnerships Act (the HOME Investment Partnerships Program). In general, under the HOME Investment Partnerships Program, HUD allocates funds by formula among eligible State and local governments to strengthen public-private partnerships and to expand the supply of decent, safe, sanitary, and affordable housing, with primary attention to rental housing, for very low-income and low-income families. Generally, HOME funds must be matched by nonfederal resources. State and local governments that become participating jurisdictions may use HOME funds to carry out multi-year housing strategies through acquisition, rehabilitation, and new construction of housing, and tenant-based rental assistance. Participating jurisdictions may provide assistance in a number of eligible forms, including loans, advances, equity investments, interest subsidies and other forms of investment that HUD approves.
24:24:1.1.1.1.41.1.63.2 24 Housing and Urban Development     92 PART 92—HOME INVESTMENT PARTNERSHIPS PROGRAM A Subpart A—General   § 92.2 Definitions. HUD     [61 FR 48750, Sept. 16, 1996, as amended at 67 FR 61755, Oct. 1, 2002; 69 FR 16765, Mar. 30, 2004; 72 FR 16685, Apr. 4, 2007; 78 FR 44664, July 24, 2013; 80 FR 75934, Dec. 7, 2015; 81 FR 86952, Dec. 2, 2016; 81 FR 90657, Dec. 14, 2016; 88 FR 30496, May 11, 2023; 88 FR 9662, Feb. 14, 2023; 90 FR 863, Jan. 6, 2025] The terms 1937 Act, ALJ, Fair Housing Act, HUD, Indian Housing Authority (IHA), Public housing, Public Housing Agency (PHA), and Secretary are defined in 24 CFR 5.100. Act means the HOME Investment Partnerships Act at title II of the Cranston-Gonzalez National Affordable Housing Act, as amended, 42 U.S.C. 12701 et seq. Adjusted income. See § 92.203. Annual income. See § 92.203. CDBG program means the Community Development Block Grant program under 24 CFR part 570. Certification shall have the meaning provided in section 104(21) of the Cranston-Gonzalez National Affordable Housing Act, as amended, 42 U.S.C. 12704. Commitment means: (1) The participating jurisdiction has executed a legally binding written agreement (that includes the date of the signature of each person signing the agreement) that meets the minimum requirements for a written agreement in § 92.504(c). An agreement between the participating jurisdiction and a subrecipient that is controlled by the participating jurisdiction ( e.g., an agency whose officials or employees are officials or employees of the participating jurisdiction) does not constitute a commitment. An agreement between the representative unit and a member unit of general local government of a consortium does not constitute a commitment. Funds for administrative and planning costs of the HOME program are committed based on the amount in the program disbursement and information system for administration and planning. The written agreement must be: (i) With a State recipient or a subrecipient to use a specific amount of HOME funds to produce affordable housing, provide homeownership assistance, or provide tenant-based rental assistance; (ii) With a community housing development organization to provide operating expenses; (iii) With a community housing development organization to provide project-specific technical assistance and site control loans or project-specific seed money loans, in accordance with § 92.301; (iv) To develop the capacity of community housi…
24:24:1.1.1.1.41.1.63.3 24 Housing and Urban Development     92 PART 92—HOME INVESTMENT PARTNERSHIPS PROGRAM A Subpart A—General   § 92.3 Applicability of 2025 regulatory changes. HUD     [90 FR 865, Jan. 6, 2025; 90 FR 16086, Apr. 17, 2025] This part applies to projects based on when an income determination is made or when the HOME funds for the project were committed, as applicable. Projects where the HOME funds were committed before a certain date may be subject to previous versions of this part. This section provides instruction regarding which version of this part applies. (a) Effective date of this part as it exists on April 20, 2025. Except as described in this section, this part, as it exists on April 20, 2025 is applicable to projects for which HOME funds are committed on or after April 20, 2025. A participating jurisdiction must perform income determinations in accordance with § 92.203 after April 20, 2025. (b) One year compliance period. Participating jurisdictions are permitted to choose to continue to comply with the requirements of this part as they existed on April 19, 2025 for commitments made on or before April 20, 2026. (c) Delayed compliance date for income determinations. Participating jurisdictions are permitted to continue to comply with the income determination requirements in accordance with § 92.203 that the participating jurisdiction was implementing on April 19, 2025 until February 5, 2026, or longer as determined by HUD. (d) Applicability of this part as it exists on April 20, 2025 to prior agreement s. A participating jurisdiction may choose to amend its written agreements for funds committed prior to April 20, 2025 to conform to the requirements of this part, except that: (1) Certain cost s allowed to be reimbursable under § 92.206(d)(1) and (2), as effective April 20, 2025 may only be included in written agreements for projects if the participating jurisdiction committed the HOME funds for the project on or after April 20, 2025. (2) Requesting an increase in maximum per-unit subsidy in accordance with § 92.250(c) is only permitted for projects if the participating jurisdiction committed the HOME funds for the project on or after April 20, 2025. (3) Use of the revised dollar thresholds for the periods …
24:24:1.1.1.1.41.1.63.4 24 Housing and Urban Development     92 PART 92—HOME INVESTMENT PARTNERSHIPS PROGRAM A Subpart A—General   § 92.4 Waivers and suspension of requirements for disaster areas. HUD       HUD's authority for waiver of regulations and for the suspension of requirements to address damage in a Presidentially declared disaster area is described in 24 CFR 5.110 and in section 290 of the Act, respectively.
24:24:1.1.1.1.41.10.67.1 24 Housing and Urban Development     92 PART 92—HOME INVESTMENT PARTNERSHIPS PROGRAM J Subpart J—Reallocations   § 92.450 General. HUD       (a) This subpart J sets out the conditions under which HUD reallocates HOME funds that have been allocated, reserved, or placed in a HOME Investment Trust Fund. (b) A jurisdiction that is not a participating jurisdiction but is meeting the requirements of §§ 92.102, 92.103, and 92.104, (participation threshold, notice of intent, and submission of consolidated plan) is treated as a participating jurisdiction for purposes of receiving a reallocation under subpart J of this part.
24:24:1.1.1.1.41.10.67.2 24 Housing and Urban Development     92 PART 92—HOME INVESTMENT PARTNERSHIPS PROGRAM J Subpart J—Reallocations   § 92.451 Reallocation of HOME funds from a jurisdiction that is not designated a participating jurisdiction or has its designation revoked. HUD       (a) Failure to be designated a participating jurisdiction. HUD will reallocate, under this section, any HOME funds allocated to or reserved for a jurisdiction that is not a participating jurisdiction if: (1) HUD determines that the jurisdiction has failed to: (i) Meet the participation threshold amount in § 92.102; (ii) Provide notice of its intent to become a participating jurisdiction in accordance with § 92.103; or (iii) Submit its consolidated plan, in accordance with 24 CFR part 91; or (2) HUD after providing for amendments and resubmissions in accordance with 24 CFR part 91 disapproves the jurisdiction's consolidated plan. (b) Designation revoked. HUD will reallocate, under this section, any funds remaining in a jurisdiction's HOME Investment Trust Fund after HUD has revoked the jurisdiction's designation as a participating jurisdiction under § 92.107. (c) Manner of reallocation. HUD will reallocate funds that are subject to reallocation under this section in the following manner: (1) If the funds to be reallocated under this section are from a State, HUD will: (i) Make the funds available by competition in accordance with criteria in § 92.453 among applications submitted by units of general local government within the State and with preference being given to applications from units of general local government that are not participating jurisdictions, and (ii) Reallocate the remainder by formula in accordance with § 92.454. (2) If the funds to be reallocated are from a unit of general local government: (i) Located in a State that is participating jurisdiction, HUD will reallocate the funds to that State. The State, in distributing these funds, must give preference to the provision of affordable housing within the unit of general local government; or (ii) Located in a State that is not a participating jurisdiction, HUD will reallocate the funds by competition among units of general local government and community housing development organizations within the State, with priority going to app…
24:24:1.1.1.1.41.10.67.3 24 Housing and Urban Development     92 PART 92—HOME INVESTMENT PARTNERSHIPS PROGRAM J Subpart J—Reallocations   § 92.452 Reallocation of community housing development organization set-aside. HUD       HUD will reallocate, under this section, any HOME funds reduced or recaptured by HUD from a participating jurisdiction's HOME Investment Trust Fund under § 92.300(d). HUD will reallocate these funds by competition in accordance with criteria in § 92.453 to other participating jurisdictions for affordable housing developed, sponsored, or owned by community housing development organizations.
24:24:1.1.1.1.41.10.67.4 24 Housing and Urban Development     92 PART 92—HOME INVESTMENT PARTNERSHIPS PROGRAM J Subpart J—Reallocations   § 92.453 Competitive reallocations. HUD     [62 FR 44840, Aug. 22, 1997] (a) HUD will invite applications through Federal Register publication of a Notice of Funding Availability (NOFA), in accordance with section 102 of the Department of Housing and Urban Development Reform Act of 1989 (42 U.S.C. 3545) and the requirements of sec. 217(c) of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12747(c)), for HOME funds that become available for competitive reallocation under § 92.451 or § 92.452, or both. The NOFA will describe the application requirements and procedures, including the total funding available for the competition and any maximum amount of individual awards. The NOFA will also describe the selection criteria and any special factors to be evaluated in awarding points under the selection criteria. (b) The NOFA will include the selection criteria at sec. 217(c) of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12747(c)), with the following maximum number of points awarded for each category of criteria: (1) Commitment. Up to 25 points for the criteria at sec. 217(c)(1) of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12747(c)(1)); (2) Actions. Up to 50 points for the criteria at sec. 217(c)(2) of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12747(c)(2)); and (3) Policies. Up to 25 points for the criteria at sec. 217(c)(3) of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12747(c)(3)).
24:24:1.1.1.1.41.10.67.5 24 Housing and Urban Development     92 PART 92—HOME INVESTMENT PARTNERSHIPS PROGRAM J Subpart J—Reallocations   § 92.454 Reallocations by formula. HUD     [61 FR 48750, Sept. 16, 1996, as amended at 90 FR 888, Jan. 6, 2025] (a) HUD will reallocate under this section: (1) Any HOME funds remaining available for reallocation after HUD has made competitive reallocations under § 92.451 and § 92.452; (2) Any HOME funds available for reallocation because HUD reduced or recaptured funds from participating jurisdiction under § 92.500(d) for failure to commit the funds within the time specified; (3) Any HOME funds withdrawn by HUD from a participating jurisdiction under 24 CFR 91.520(f) for failure to submit in a timely manner a performance report required by 24 CFR 91.520 that is satisfactory to HUD; (4) Any HOME funds remitted to HUD under § 92.503(b) when a jurisdiction ceases to be a participating jurisdiction; and (5) Any HOME funds available for reallocation as a result of any reductions under 24 CFR 92.551 or 92.552. (b) Any reallocation of funds from a State must be made only among all participating States, and any reallocation of funds from units of general local government must be made only among all participating units of general local government, except those participating jurisdictions whose funds were reduced under § 92.551 or that HUD has removed from participating in reallocations under § 92.552. (c) A local participating jurisdiction's share of a reallocation is calculated by multiplying the amount available for reallocation to units of general local government by a factor that is that ratio of the participating jurisdiction's formula allocation provided under § 92.50 to the total of the formula allocations provided for all local participating jurisdictions sharing in the reallocation. A State participating jurisdiction's share is comparably determined using the amount available for reallocation to States. (d) HUD will make reallocations under this section quarterly, unless the amount available for such reallocation is insufficient to warrant making a reallocation. In any event, HUD will make a reallocation under this section at least once a year. The minimum amount of a reallocation is $1000.
24:24:1.1.1.1.41.11.67.1 24 Housing and Urban Development     92 PART 92—HOME INVESTMENT PARTNERSHIPS PROGRAM K Subpart K—Program Administration   § 92.500 The HOME Investment Trust Fund. HUD     [61 FR 48750, Sept. 16, 1996, as amended at 62 FR 28930, May 28, 1997; 78 FR 44679, July 24, 2013; 81 FR 86952, Dec. 2, 2016; 90 FR 888, Jan. 6, 2025] (a) General. A HOME Investment Trust Fund consists of the accounts described in this section solely for investment in accordance with the provisions of this part. HUD will establish a HOME Investment Trust Fund United States Treasury account for each participating jurisdiction. Each participating jurisdiction may use either a separate local HOME Investment Trust Fund account or, a subsidiary account within its general fund (or other appropriate fund) as the local HOME Investment Trust Fund account. (b) Treasury Account. The United States Treasury account of the HOME Investment Trust Fund includes funds allocated to the participating jurisdiction under § 92.50 (including for a local participating jurisdiction, any transfer of the State's allocation pursuant to § 92.102(b)(2)) and funds reallocated to the participating jurisdiction, either by formula or by competition, under subpart J of this part; and (c) Local account. (1) The local account of the HOME Investment Trust Fund includes deposits of HOME funds disbursed from the Treasury account; the deposit of any State funds (other than HOME funds transferred pursuant to § 92.102(b)(2)) or local funds that enable the jurisdiction to meet the participating threshold amount in § 92.102, any program income (from both the allocated funds and matching contributions in accordance with the definition of program income), and any repayments or recaptured funds as required by § 92.503. The local account must be interest-bearing. (2) The participating jurisdiction may establish a second local account of the HOME Investment Trust Funds if: (i) The participating jurisdiction has its own affordable housing trust fund that the participating jurisdiction will use for matching contributions to the HOME program; (ii) The statute or local ordinance requires repayments from its own affordable housing trust fund to be made to the local account; (iii) The participating jurisdiction establishes a separate account within its own trust fund for repayments of the matching contrib…
24:24:1.1.1.1.41.11.67.10 24 Housing and Urban Development     92 PART 92—HOME INVESTMENT PARTNERSHIPS PROGRAM K Subpart K—Program Administration   § 92.509 Performance reports. HUD       (a) Management reports. Each participating jurisdiction must submit management reports on its HOME Investment Partnerships Program in such format and at such time as HUD may prescribe. (b) Annual performance report. For annual performance report requirements, see 24 CFR part 91.
24:24:1.1.1.1.41.11.67.2 24 Housing and Urban Development     92 PART 92—HOME INVESTMENT PARTNERSHIPS PROGRAM K Subpart K—Program Administration   § 92.501 HOME Investment Partnership Agreement. HUD       Allocated and reallocated funds will be made available pursuant to a HOME Investment Partnership Agreement. The agreement ensures that HOME funds invested in affordable housing are repayable if the housing ceases to qualify as affordable housing before the period of affordability expires.
24:24:1.1.1.1.41.11.67.3 24 Housing and Urban Development     92 PART 92—HOME INVESTMENT PARTNERSHIPS PROGRAM K Subpart K—Program Administration   § 92.502 Program disbursement and information system. HUD     [61 FR 48750, Sept. 16, 1996, as amended at 78 FR 44679, July 24, 2013; 80 FR 75935, Dec. 7, 2015; 81 FR 86952, Dec. 2, 2016; 90 FR 888, Jan. 6, 2025] (a) General. The HOME Investment Trust Fund account established in the United States Treasury is managed through a computerized disbursement and information system established by HUD. The system disburses HOME funds that are allocated or reallocated, and collects and reports information on the use of HOME funds in the United States Treasury account. (For purposes of reporting in the Integrated Disbursement and Information System, a HOME project is an activity.) The participating jurisdiction must report all program income in HUD's computerized disbursement and information system. (b) Project funding. After the participating jurisdiction executes the HOME Investment Partnership Agreement, submits the applicable banking and security documents, complies with the environmental requirements under 24 CFR part 58 for release of funds, and commits funds to a specific local project, the participating jurisdiction may provide funding to an activity by identifying specific investments in the disbursement and information system. The participating jurisdiction is required to enter complete project set-up information before providing funding to the project. (c) Disbursement of HOME funds. (1) After complete project information is entered into the disbursement and information system, HOME funds for the project may be drawn down from the United States Treasury account by the participating jurisdiction by electronic funds transfer. The funds will be deposited in the local account of the HOME Investment Trust Fund of the participating jurisdiction within 48 to 72 hours of the disbursement request. Any drawdown of HOME funds from the United States Treasury account is conditioned upon the provision of satisfactory information by the participating jurisdiction about the project or tenant-based rental assistance and compliance with other procedures, as specified by HUD. (2) HOME funds drawn from the United States Treasury account must be expended for eligible costs within 15 days. Any interest earned within the 15-day period …
24:24:1.1.1.1.41.11.67.4 24 Housing and Urban Development     92 PART 92—HOME INVESTMENT PARTNERSHIPS PROGRAM K Subpart K—Program Administration   § 92.503 Program income, repayments, and recaptured funds. HUD     [61 FR 48750, Sept. 16, 1996, as amended at 78 FR 44680, July 24, 2013; 81 FR 86952, Dec. 2, 2016] (a) Program income. (1) Program income must be used in accordance with the requirements of this part. Program income must be deposited in the participating jurisdiction's HOME Investment Trust Fund local account unless the participating jurisdiction permits the State recipient or subrecipient to retain the program income for additional HOME projects pursuant to the written agreement required by § 92.504. (2) If the jurisdiction is not a participating jurisdiction when the program income is received, the funds are not subject to the requirements of this part. (3) Program income derived from consortium activities undertaken by or within a member unit of general local government which thereafter terminates its participation in the consortium continues to be program income of the consortium. (b) Repayments. (1) Any HOME funds invested in housing that does not meet the affordability requirements for the period specified in § 92.252 or § 92.254, as applicable, must be repaid by the participating jurisdiction in accordance with paragraph (b)(3) of this section. (2) Any HOME funds invested in a project that is terminated before completion, either voluntarily or otherwise, must be repaid by the participating jurisdiction, in accordance with paragraph (b)(3) of this section, except for repayments of project-specific community housing development organization loans that are waived, in accordance with § 92.301(a)(3) and (b)(3). In addition, any HOME funds used for costs that are not eligible under this part must be repaid by the participating jurisdiction, in accordance with paragraph (b)(3) of this section. (3) HUD will instruct the participating jurisdiction to either repay the funds to the HOME Investment Trust Fund Treasury account or the local account. If the jurisdiction is not a participating jurisdiction at the time the repayment is made, the funds must be remitted to HUD and reallocated, in accordance with § 92.454. (c) Recaptures. HOME funds recaptured in accordance with § 92.254(a)(5)(ii) must be used …
24:24:1.1.1.1.41.11.67.5 24 Housing and Urban Development     92 PART 92—HOME INVESTMENT PARTNERSHIPS PROGRAM K Subpart K—Program Administration   § 92.504 Participating jurisdiction responsibilities; written agreements. HUD     [61 FR 48750, Sept. 16, 1996, as amended at 64 FR 50224, Sept. 15, 1999; 67 FR 61757, Oct. 1, 2002; 68 FR 56404, Sept. 30, 2003; 78 FR 44680, July 24, 2013; 80 FR 75935, Dec. 7, 2015; 81 FR 80804, Nov. 16, 2016; 81 FR 86952, Dec. 2, 2016; 88 FR 30497, May 11, 2023; 90 FR 888, Jan. 6, 2025] (a) Responsibilities. The participating jurisdiction is responsible for managing the day-to-day operations of its HOME program, ensuring that HOME funds are used in accordance with all program requirements and written agreements, and taking appropriate action when performance problems arise. The use of State recipients, subrecipients, or contractors does not relieve the participating jurisdiction of this responsibility. The performance and compliance of each contractor, State recipient, and subrecipient must be reviewed at least annually. The participating jurisdiction must have and follow written policies, procedures, and systems, including a system for assessing risk of activities and projects and a system for monitoring entities consistent with this section, to ensure that the requirements of this part are met. (b) Executing a written agreement. Before disbursing any HOME funds to any entity, the participating jurisdiction must enter into a legally binding written agreement with that entity. Before disbursing any HOME funds to any entity, a State recipient, subrecipient, or contractor that is administering all or a part of the HOME program on behalf of the participating jurisdiction, must also enter into a legally binding written agreement with that entity. The written agreement must ensure compliance with the requirements of this part and be a separate agreement from project financing documents ( e.g., mortgage or deed of trust, regulatory agreement, or promissory note). (c) Provisions in written agreements. The contents of the agreement may vary depending upon the role the entity is asked to assume or the type of project undertaken. This section details basic requirements and the minimum provisions by role and type of entity that must be included in a written agreement. (1) State recipient. The provisions in the written agreement between the State and a State recipient will depend on the program functions that the State specifies the State recipient will carry out in accordance with § 92.201(b). …
24:24:1.1.1.1.41.11.67.6 24 Housing and Urban Development     92 PART 92—HOME INVESTMENT PARTNERSHIPS PROGRAM K Subpart K—Program Administration   § 92.505 Applicability of uniform administrative requirements. HUD     [80 FR 75935, Dec. 7, 2015, as amended at 90 FR 892, Jan. 6, 2025] The requirements of 2 CFR part 200 apply to participating jurisdictions, State recipients, and subrecipients receiving HOME funds, except for the following provisions: §§ 200.306, 200.307, 200.308 (not applicable to participating jurisdictions), 200.311 (except as provided in § 92.257), 200.312, 200.328, 200.330, 200.334, 200.335, and 200.344 (except as provided in § 92.507). The provisions of 2 CFR 200.305 apply as modified by § 92.502(c). If there is a conflict between definitions in 2 CFR part 200 and 24 CFR part 92, the definitions in 24 CFR part 92 govern.
24:24:1.1.1.1.41.11.67.7 24 Housing and Urban Development     92 PART 92—HOME INVESTMENT PARTNERSHIPS PROGRAM K Subpart K—Program Administration   § 92.506 Audit. HUD     [67 FR 61757, Oct. 1, 2002, as amended at 80 FR 75935, Dec. 7, 2015] Audits of the participating jurisdiction, State recipients, and subrecipients must be conducted in accordance with 2 CFR part 200, subpart F.
24:24:1.1.1.1.41.11.67.8 24 Housing and Urban Development     92 PART 92—HOME INVESTMENT PARTNERSHIPS PROGRAM K Subpart K—Program Administration   § 92.507 Closeout. HUD     [90 FR 892, Jan. 6, 2025] This section specifies the procedure and actions that must be completed by a participating jurisdiction and HUD to closeout a grant. The requirements of 2 CFR 200.344 apply to closeouts, except to the extent that such requirements conflict with the following: (a) Closeout process. (1) HUD will close out a grant after the period of performance has ended. A participating jurisdiction must complete all required activities and closeout actions for the grant, as required by HUD. If the participating jurisdiction fails to complete the requirements in accordance with this section, HUD may close out the Federal award with the information available. HUD may close out individual grants or multiple grants simultaneously. (2) To prepare for closeout, before the end of the budget period of the grant, the participating jurisdiction shall. review all eligible activities under the grant and reconcile its accounts as follows: (i) For any eligible costs incurred under the grant and not yet drawn down from the U.S. Treasury account, the grantee must draw down those funds in a timely manner. (ii) The participating jurisdiction must promptly refund to the proper accounts any previously disbursed balances of unobligated cash paid in advance. All such refunds must be completed prior to submission of the information and reports required in paragraph (b) of this section. (3) At the end of the grant budget period, no additional eligible activities may be undertaken by the participating jurisdiction using the grant funds and no additional eligible costs incurred after the budget period may be submitted by the participating jurisdiction. Unused funds remaining on the grant will be returned to the U.S. Treasury by HUD. The participating jurisdiction must promptly refund any unused grant funds not authorized to be retained, consistent with HUD's instructions. (4) HUD will initiate closeout actions in the computerized disbursement and information system when the participating jurisdiction has met the requirements established in paragra…
24:24:1.1.1.1.41.11.67.9 24 Housing and Urban Development     92 PART 92—HOME INVESTMENT PARTNERSHIPS PROGRAM K Subpart K—Program Administration   § 92.508 Recordkeeping. HUD     [61 FR 48750, Sept. 16, 1996, as amended at 64 FR 50224, Sept. 15, 1999; 67 FR 61757, Oct. 1, 2002; 72 FR 73493, Dec. 27, 2007; 78 FR 44682, July 24, 2013; 80 FR 42366, July 16, 2015; 80 FR 75935, Dec. 7, 2015; 81 FR 80805, Nov. 16, 2016; 85 FR 47910, Aug. 7, 2020; 85 FR 61567, Sept. 29, 2020; 85 FR 82137, Dec. 17, 2020; 86 FR 30792, June 10, 2021; 86 FR 34943, July 1, 2021; 86 FR 30792, June 10, 2021; 86 FR 32767, June 23, 2021; 89 FR 38290, May 7, 2024; 90 FR 11024, Mar. 3, 2025; 90 FR 894, Jan. 6, 2025] (a) General. Each participating jurisdiction must establish and maintain sufficient records to enable HUD to determine whether the participating jurisdiction has met the requirements of this part. At a minimum, the following records are needed: (1) Records concerning designation as a participating jurisdiction. (i) For a consortium, the consortium agreement among the participating member units of general local government as required by § 92.101. (ii) For a unit of general local government receiving a formula allocation of less than $750,000 (or less than $500,000 in fiscal years in which Congress appropriates less than $1.5 billion for this part), records demonstrating that funds have been made available (either by the State or the unit of general local government, or both) equal to or greater than the difference between its formula allocation and $750,000 (or $500,000 in fiscal years in which Congress appropriates less than $1.5 billion) as required by § 92.102(b). (2) Program records. (i) Records of the efforts to maximize participation by the private sector as required by § 92.200. (ii) The forms of HOME assistance used in the program, including any forms of investment described in the Consolidated Plan under 24 CFR part 91 that are not identified in § 92.205(b), and which are specifically approved by HUD. (iii) The underwriting and subsidy layering guidelines adopted in accordance with § 92.250 that support the participating jurisdiction's Consolidated Plan certification. (iv) If existing debt is refinanced for multi-family rehabilitation projects, the refinancing guidelines established in accordance with § 92.206(b), described in the Consolidated Plan. (v) If HOME funds are used for tenant-based rental assistance, records supporting the participating jurisdiction's Consolidated Plan certification in accordance with § 92.209(b), including documentation of the local market conditions that led to the choice of this option; written selection policies and criteria; supporting documentation for prefer…
24:24:1.1.1.1.41.12.67.1 24 Housing and Urban Development     92 PART 92—HOME INVESTMENT PARTNERSHIPS PROGRAM L Subpart L—Performance Reviews and Sanctions   § 92.550 Performance reviews. HUD       (a) General. HUD will review the performance of each participating jurisdiction in carrying out its responsibilities under this part whenever determined necessary by HUD, but at least annually. In conducting performance reviews, HUD will rely primarily on information obtained from the participating jurisdiction's and, as appropriate, the State recipient's records and reports, findings from on-site monitoring, audit reports, and information generated from the disbursement and information system established by HUD. Where applicable, HUD may also consider relevant information pertaining to a participating jurisdiction's or State recipient's performance gained from other sources, including citizen comments, complaint determinations, and litigation. Reviews to determine compliance with specific requirements of this part will be conducted as necessary, with or without prior notice to the participating jurisdiction or State recipient. Comprehensive performance reviews under the standards in paragraph (b) of this section will be conducted after prior notice to the participating jurisdiction. (b) Standards for comprehensive performance review. A participating jurisdiction's performance will be comprehensively reviewed periodically, as prescribed by HUD, to determine: (1) For local participating jurisdictions and State participating jurisdictions administering their own HOME programs, whether the participating jurisdiction has committed the HOME funds in the United States Treasury account as required by § 92.500 and expended the funds in the United States Treasury account as required by § 92.500, and has met the requirements of this part, particularly eligible activities, income targeting, affordability, and matching requirements; or (2) For State participating jurisdictions distributing HOME funds to State recipients, whether the State has met the matching contribution and other requirements of this part; has distributed the funds in accordance with the requirements of this part; and has made such reviews and audit…
24:24:1.1.1.1.41.12.67.2 24 Housing and Urban Development     92 PART 92—HOME INVESTMENT PARTNERSHIPS PROGRAM L Subpart L—Performance Reviews and Sanctions   § 92.551 Corrective and remedial actions. HUD     [61 FR 48750, Sept. 16, 1996, as amended at 78 FR 44683, July 24, 2013; 80 FR 75935, Dec. 7, 2015; 90 FR 894, Jan. 6, 2025] (a) General. HUD will use the procedures in this section in conducting the performance review as provided in § 92.550 and in taking corrective and remedial actions. (b) Performance review. (1) If HUD determines preliminarily that the participating jurisdiction has not met a requirement of this part, the participating jurisdiction will be given notice of this determination and an opportunity to demonstrate, within the time prescribed by HUD (not to exceed 30 days) and on the basis of substantial facts and data, that it has done so. (2) If the participating jurisdiction fails to demonstrate to HUD's satisfaction that it has met the requirement, HUD will take corrective or remedial action in accordance with this section or § 92.552. (c) Corrective and remedial actions. Corrective or remedial actions for a performance deficiency (failure to meet a provision of this part) will be designed to prevent a continuation of the deficiency; mitigate, to the extent possible, its adverse effects or consequences; and prevent its recurrence. (1) HUD may instruct the participating jurisdiction to submit and comply with proposals for action to correct, mitigate and prevent a performance deficiency, including: (i) Preparing and following a schedule of actions for carrying out the affected activities, consisting of schedules, timetables, and milestones necessary to implement the affected activities; (ii) Establishing and following a management plan that assigns responsibilities for carrying out the remedial actions; (iii) Canceling or revising activities likely to be affected by the performance deficiency, before expending HOME funds for the activities; (iv) Reprogramming HOME funds that have not yet been expended from affected activities to other eligible activities; (v) Reimbursing its HOME Investment Trust Fund in any amount not used in accordance with the requirements of this part; (vi) Suspending disbursement of HOME funds for affected activities; and (vii) Establishing procedures to ensure compliance with HOME …
24:24:1.1.1.1.41.12.67.3 24 Housing and Urban Development     92 PART 92—HOME INVESTMENT PARTNERSHIPS PROGRAM L Subpart L—Performance Reviews and Sanctions   § 92.552 Notice and opportunity for hearing; sanctions. HUD     [61 FR 48750, Sept. 16, 1996, as amended at 62 FR 44840, Aug. 22, 1997; 78 FR 44683, July 24, 2013; 90 FR 894, Jan. 6, 2025] (a) If HUD finds after reasonable notice and opportunity for hearing that a participating jurisdiction has failed to comply with any provision of this part and until HUD is satisfied that there is no longer any such failure to comply: (1) HUD shall reduce the funds in the participating jurisdiction's HOME Investment Trust Fund by the amount of any expenditures that were not in accordance with the requirements of this part; and (2) HUD may do one or more of the following: (i) Prevent withdrawals from the participating jurisdiction's HOME Investment Trust Fund for activities affected by the failure to comply; (ii) Restrict the participating jurisdiction's activities under this part to activities that conform to one or more model programs which HUD has developed in accordance with section 213 of the Act; (iii) Remove the participating jurisdiction from participation in allocations or reallocations of funds made available under subpart B or J of this part; (iv) Require the participating jurisdiction to make matching contributions in amounts required by § 92.218(a) as HOME funds are drawn from the participating jurisdiction's HOME Investment Trust Fund United States Treasury Account. Provided, however, that HUD may on due notice suspend payments at any time after the issuance of a notice of opportunity for hearing pursuant to paragraph (b)(1) of this section, pending such hearing and a final decision, to the extent HUD determines such action necessary to preclude the further expenditure of funds for activities affected by the failure to comply; (v) Reduce grant amounts paid to the participating jurisdiction by an amount equal to the amount of any expenditures that did not comply with the requirements of this part. The amount of a reduction may be for the entire grant amount; (vi) Revoke a jurisdiction's designation as a participating jurisdiction; and (vii) Terminate the assistance in whole or in part in accordance with 2 CFR 200.340. (b) Proceedings. When HUD proposes to take action pursuant to this secti…
24:24:1.1.1.1.41.2.63.1 24 Housing and Urban Development     92 PART 92—HOME INVESTMENT PARTNERSHIPS PROGRAM B Subpart B—Allocation Formula   § 92.50 Formula allocation. HUD     [61 FR 48750, Sept. 16, 1996, as amended at 62 FR 28928, May 28, 1997; 67 FR 61755, Oct. 1, 2002; 90 FR 866, Jan. 6, 2025] (a) Jurisdictions eligible for a formula allocation. HUD will provide allocations of funds in amounts determined by the formula described in this section to units of general local governments that, as of the end of the previous fiscal year, are metropolitan cities, urban counties, or consortia approved under § 92.101; and States. (b) Amounts available for allocation; State and local share. The amount of funds that are available for allocation by the formula under this section is equal to the balance of funds remaining after reserving amounts for insular areas, housing education and organizational support, other support for State and local housing strategies, and other purposes authorized by Congress, in accordance with the Act and appropriations. (c) Formula factors. The formula for determining allocations uses the following factors. The first and sixth factors are weighted 0.1; the other four factors are weighted 0.2. (1) Vacancy-adjusted rental units where the household head is at or below the poverty level. These rental units are multiplied by the ratio of the national rental vacancy rate over a jurisdiction's rental vacancy rate. (2) Occupied rental units with at least one of four problems (overcrowding, incomplete kitchen facilities, incomplete plumbing, or high rent costs). Overcrowding is a condition that exists if there is more than one person per room occupying the unit. Incomplete kitchen facilities means the unit lacks a sink with running water, a range, or a refrigerator. Incomplete plumbing means the unit lacks hot and cold piped water, a flush toilet, or a bathtub or shower inside the unit for the exclusive use of the occupants of the unit. High rent costs occur when more than 30 percent of household income is used for rent. (3) Rental units built before 1950 occupied by households below the poverty line. (4) Rental units described in paragraph (c)(2) of this section multiplied by the ratio of the cost of producing housing for a jurisdiction divided by the national cost. (5) Num…
24:24:1.1.1.1.41.2.63.2 24 Housing and Urban Development     92 PART 92—HOME INVESTMENT PARTNERSHIPS PROGRAM B Subpart B—Allocation Formula   § 92.60 Allocation amounts for insular areas. HUD       (a) Initial allocation amount for each insular area. The initial allocation amount for each insular area is determined based upon the insular area's population and occupied rental units compared to all insular areas. (b) Threshold requirements. The HUD Field Office shall review each insular area's progress on outstanding allocations made under this section, based on the insular area's performance report, the timeliness of close-outs, and compliance with fund management requirements and regulations, taking into consideration the size of the allocation and the degree and complexity of the program. If HUD determines from this review that the insular area does not have the capacity to administer effectively a new allocation, or a portion of a new allocation, in addition to allocations currently under administration, HUD may reduce the insular area's initial allocation amount. (c) Previous audit findings and outstanding monetary obligations. HUD shall not make an allocation to an insular area that has either an outstanding audit finding for any HUD program, or an outstanding monetary obligation to HUD that is in arrears, or for which a repayment schedule has not been established. This restriction does not apply if the HUD Field Office finds that the insular area has made a good faith effort to clear the audit and, when there is an outstanding monetary obligation to HUD, the insular area has made a satisfactory arrangement for repayment of the funds due HUD and payments are current. (d) Increases to the initial allocation amount. If funds reserved for the insular areas are available because HUD has decreased the amount for one or more insular areas in accordance with paragraphs (b) or (c) of this section, or for any other reason, HUD may increase the allocation amount for one or more of the remaining insular areas based upon the insular area's performance in committing HOME funds within the 24 month deadline, producing housing units described in its program description, and meeting HOME program requirements.…
24:24:1.1.1.1.41.2.63.3 24 Housing and Urban Development     92 PART 92—HOME INVESTMENT PARTNERSHIPS PROGRAM B Subpart B—Allocation Formula   § 92.61 Program description. HUD     [61 FR 48750, Sept. 16, 1996, as amended at 72 FR 73493, Dec. 27, 2007] (a) Submission requirement. Not later than 90 days after HUD notifies the insular area of the amount of its allocation, the insular area must submit a program description and certifications to HUD. (b) Content of program description. The program description must contain the following: (1) An executed Standard Form 424; (2) The estimated use of HOME funds and a description of projects and eligible activities, including number of units to be assisted, estimated costs, and tenure type (rental or owner occupied) and, for tenant assistance, number of households to be assisted; (3) A timetable for the implementation of the projects or eligible activities; (4) If the insular area intends to use HOME funds for homebuyers, the guidelines for resale or recapture as required in § 92.254(a)(5); (5) If the insular area intends to use HOME funds for tenant-based rental assistance, a description of how the program will be administered consistent with the minimum guidelines described in § 92.209; (6) If an insular area intends to use other forms of investment not described in § 92.205(b), a description of the other forms of investment; (7) A statement of the policy and procedures to be followed by the insular area to meet the requirements for affirmative marketing, and establishing and overseeing a minority and women business outreach program under § 92.351; (8) If the insular intends to use HOME funds for refinancing along with rehabilitation, the insular area's guidelines described in § 92.206(b). (c) Certifications. The following certifications must accompany the program description: (1) A certification that, before committing funds to a project, the insular area will evaluate the project in accordance with guidelines that it adopts for this purpose and will not invest any more HOME funds in combination with other governmental assistance than is necessary to provide affordable housing; (2) If the insular area intends to provide tenant-based rental assistance, the certification required by § 92.209; (3) A ce…
24:24:1.1.1.1.41.2.63.4 24 Housing and Urban Development     92 PART 92—HOME INVESTMENT PARTNERSHIPS PROGRAM B Subpart B—Allocation Formula   § 92.62 Review of program description and certifications. HUD       (a) Review of program description. The responsible HUD Field Office will review an insular area's program description and will approve the description unless the insular area has failed to submit information sufficient to allow HUD to make the necessary determinations required for § 92.61 (b)(4), (b)(6), and (b)(7), or the guidelines under (b)(8) are not satisfactory to HUD, if applicable; or if the level of proposed projects or eligible activities is not within the management capability demonstrated by past performance in housing and community development programs. If the insular area has not submitted information on § 92.61 (b)(4), (b)(6), and (b)(7), or the guidelines under (b)(8) are not satisfactory to HUD, if applicable; or if the level of proposed projects or eligible activities is not within the management capability demonstrated by past performance in housing and community development programs, the insular area may be required to furnish such further information or assurances as HUD may consider necessary to find the program description and certifications satisfactory. The HUD Field Office shall work with the insular area to achieve a complete and satisfactory program description. (b) Review period. Within thirty days of receipt of the program description, the HUD Field Office will notify the insular area if determinations cannot be made under § 92.61 (b)(4), (b)(6), (b)(7), or (b)(8) with the supporting information submitted, or if the proposed projects or activities are beyond currently demonstrated capability. The insular area will have a reasonable period of time, agreed upon mutually, to submit the necessary supporting information or to revise the proposed projects or activities in its program description. (c) HOME Investment Partnership Agreement. After HUD Field Office approval under this section, a HOME funds allocation is made by HUD execution of the agreement, subject to execution by the insular area. The funds are obligated on the date HUD notifies the insular area of HUD's execution o…
24:24:1.1.1.1.41.2.63.5 24 Housing and Urban Development     92 PART 92—HOME INVESTMENT PARTNERSHIPS PROGRAM B Subpart B—Allocation Formula   § 92.63 Amendments to program description. HUD       An insular area must submit to HUD for approval any substantial change in its HUD-approved program description that it makes and must document any other changes in its file. A substantial change involves a change in the guidelines for resale or recapture (§ 92.61(b)(4)), other forms of investment (§ 92.61(b)(6)), minority and women business outreach program (§ 92.61(b)(7)) or refinancing (§ 92.61(b)(8)); or a change in the tenure type of the project or activities; or a funding increase to a project or activity of $100,000 or 50% (whichever is greater). The HUD Field Office will notify the insular area if its program description, as amended, does not permit determinations to be made under § 92.61 (b)(4), (b)(6), (b)(7), or (b)(8), or if the level of proposed projects or eligible activities is not within the management capability demonstrated by past performance in housing and community development programs, within 30 days of receipt. The insular area will have a reasonable period of time, agreed upon mutually, to submit the necessary supporting information to revise the proposed projects or activities in its program description.
24:24:1.1.1.1.41.2.63.6 24 Housing and Urban Development     92 PART 92—HOME INVESTMENT PARTNERSHIPS PROGRAM B Subpart B—Allocation Formula   § 92.64 Applicability of requirements to insular areas. HUD     [69 FR 15673, Mar. 26, 2004, as amended at 80 FR 75935, Dec. 7, 2015] (a) Insular areas are subject to the same requirements in subpart E (Program Requirements), subpart F (Project Requirements), subpart K (Program Administration), and subpart L (Performance Reviews and Sanctions) of this part as participating jurisdictions, except for the following: (1) Subpart E (Program Requirements): Administrative costs, as described in § 92.207, are eligible costs for insular areas in an amount not to exceed 15 percent of the HOME funds provided to the insular area. The matching contribution requirements in this part do not apply. (2) Subpart K (Program Administration): (i) Section 92.500 (The HOME Investment Trust Fund) does not apply. HUD will establish a HOME account in the United States Treasury for each insular area and the HOME funds must be used for approved activities. A local account must be established for program income. Each insular area may use either a separate local HOME account or a subsidiary account within its general fund (or other appropriate fund) as the local HOME account. HUD will recapture HOME funds in the HOME Treasury account by the amount of: (A) Any funds that are not committed within 24 months after the last day of the month in which HUD notifies the insular area of HUD's execution of the HOME Investment Partnership Agreement; (B) Any funds that are not expended within five years after the last day of the month in which HUD notifies the insular area of HUD's execution of the HOME Investment Partnership Agreement; and (C) Any penalties assessed by HUD under § 92.552. (ii) Section 92.502 (Program disbursement and information system) applies, except that references to the HOME Investment Trust Fund mean HOME account. In addition, § 92.502(c) does not apply, and instead compliance with Treasury Circular No. 1075 (31 CFR part 205) and 2 CFR 200.305 is required. (iii) Section 92.503 (Program income, repayments, and recaptured funds) applies, except that the funds may be retained provided the funds are used for eligible activities in accordance with the requirem…
24:24:1.1.1.1.41.2.63.7 24 Housing and Urban Development     92 PART 92—HOME INVESTMENT PARTNERSHIPS PROGRAM B Subpart B—Allocation Formula   § 92.65 Funding sanctions. HUD       Following notice and opportunity for informal consultation, HUD may withhold, reduce or terminate the assistance where any corrective or remedial actions taken under § 92.551 fail to remedy an insular area's performance deficiencies, and the deficiencies are sufficiently substantial, in the judgment of HUD, to warrant sanctions.
24:24:1.1.1.1.41.2.63.8 24 Housing and Urban Development     92 PART 92—HOME INVESTMENT PARTNERSHIPS PROGRAM B Subpart B—Allocation Formula   § 92.66 Reallocation. HUD       Any HOME funds which are reduced or recaptured from an insular area's allocation and which are not used to increase the allocation amount for one or more of the remaining insular areas as provided in § 92.60 of this part, will be reallocated by HUD to the States in accordance with the requirements in subpart J for reallocating funds initially allocated to a State.
24:24:1.1.1.1.41.3.64.1 24 Housing and Urban Development     92 PART 92—HOME INVESTMENT PARTNERSHIPS PROGRAM C Subpart C—Consortia; Designation and Revocation of Designation as a Participating Jurisdiction   § 92.100 [Reserved] HUD        
24:24:1.1.1.1.41.3.64.2 24 Housing and Urban Development     92 PART 92—HOME INVESTMENT PARTNERSHIPS PROGRAM C Subpart C—Consortia; Designation and Revocation of Designation as a Participating Jurisdiction   § 92.101 Consortia. HUD     [61 FR 48750, Sept. 16, 1996, as amended at 67 FR 61756, Oct. 1, 2002; 90 FR 866, Jan. 6, 2025] (a) A consortium of geographically contiguous units of general local government is a unit of general local government for purposes of this part if the requirements of this section are met. A unit of general local government separated by a body of water that is only accessible by the public through a permanent means other than a connecting road, bridge, railway, or highway may be considered geographically contiguous if the consortium demonstrates that the unit of general local government separated by the body of water is part of the same housing market and local commuting area as one or more members of the consortium. A local commuting area is the geographic area that encompasses neighborhoods where people live and are reasonably expected to routinely travel back and forth to a common employment hub, population center, or worksite. (1) One or more members of a proposed consortium or an existing consortium whose consortium qualification terminates at the end of the fiscal year, must provide written notification to the HUD Field Office of its intent to participate as a consortium in the HOME Program for the following fiscal year. HUD shall establish the deadline for this submission. (2) The proposed consortium must provide, at such time and in a manner and form prescribed by HUD, the qualification documents, which will include submission of: (i) A written certification by the State that the consortium will direct its activities to alleviation of housing problems within the State; and (ii) Documentation which demonstrates that the consortium has executed one legally binding cooperation agreement among its members authorizing one member unit of general local government to act in a representative capacity for all member units of general local government for the purposes of this part and providing that the representative member assumes overall responsibility for ensuring that the consortium's HOME Program is carried out in compliance with the requirements of this part. (3) Before the end of the fiscal year in which…
24:24:1.1.1.1.41.3.64.3 24 Housing and Urban Development     92 PART 92—HOME INVESTMENT PARTNERSHIPS PROGRAM C Subpart C—Consortia; Designation and Revocation of Designation as a Participating Jurisdiction   § 92.102 Participation threshold amount. HUD       (a) To be eligible to become a participating jurisdiction, a unit of general local government must have a formula allocation under § 92.50 that is equal to or greater than $750,000; or (b) If a unit of general local government's formula allocation is less than $750,000, HUD must find: (1) The unit of general local government has a local PHA and has demonstrated a capacity to carry out the provisions of this part, as evidenced by satisfactory performance under one or more HUD-administered programs that provide assistance for activities comparable to the eligible activities under this part; and (2) The State has authorized HUD to transfer to the unit of general local government a portion of the State's allocation or the State, the unit of general local government, or both, has made available its own resources such that the sum of the amounts transferred or made available are equal to or greater than the difference between the unit of general local government's formula allocation and $750,000. (c) In fiscal years in which Congress appropriates less than $1.5 billion for this part, $500,000 is substituted for $750,000 each time it appears in this section.
24:24:1.1.1.1.41.3.64.4 24 Housing and Urban Development     92 PART 92—HOME INVESTMENT PARTNERSHIPS PROGRAM C Subpart C—Consortia; Designation and Revocation of Designation as a Participating Jurisdiction   § 92.103 Notification of intent to participate. HUD       (a) Not later than 30 days after receiving notice of its formula allocation amount, a jurisdiction must notify HUD in writing of its intention to become a participating jurisdiction. (b) A unit of general local government that has a formula allocation of less than $750,000, or less than $500,000 in fiscal years in which Congress appropriates less than $1.5 billion for this part, must submit, with its notice, one or more of the following, as appropriate, as evidence that it has met the threshold allocation requirements in § 92.102(b): (1) Authorization from the State to transfer a portion of its allocation to the unit of general local government; (2) A letter from the governor or designee indicating that the required funds have been approved and budgeted for the unit of general local government; (3) A letter from the chief executive officer of the unit of general local government indicating that the required funds have been approved and budgeted.
24:24:1.1.1.1.41.3.64.5 24 Housing and Urban Development     92 PART 92—HOME INVESTMENT PARTNERSHIPS PROGRAM C Subpart C—Consortia; Designation and Revocation of Designation as a Participating Jurisdiction   § 92.104 Submission of a consolidated plan. HUD     [85 FR 47910, Aug. 7, 2020] A jurisdiction that has not submitted a consolidated plan to HUD must submit to HUD, not later than 90 calendar days after providing notification under § 92.103, a consolidated plan in accordance with 24 CFR part 91.
24:24:1.1.1.1.41.3.64.6 24 Housing and Urban Development     92 PART 92—HOME INVESTMENT PARTNERSHIPS PROGRAM C Subpart C—Consortia; Designation and Revocation of Designation as a Participating Jurisdiction   § 92.105 Designation as a participating jurisdiction. HUD       When a jurisdiction has complied with the requirements of §§ 92.102 through 92.104 and HUD has approved the jurisdiction's consolidated plan in accordance with 24 CFR part 91, HUD will designate the jurisdiction as a participating jurisdiction.
24:24:1.1.1.1.41.3.64.7 24 Housing and Urban Development     92 PART 92—HOME INVESTMENT PARTNERSHIPS PROGRAM C Subpart C—Consortia; Designation and Revocation of Designation as a Participating Jurisdiction   § 92.106 Continuous designation as a participating jurisdiction. HUD       Once a State or unit of general local government is designated a participating jurisdiction, it remains a participating jurisdiction for subsequent fiscal years and the requirements of §§ 92.102 through 92.105 do not apply, unless HUD revokes the designation in accordance with § 92.107.
24:24:1.1.1.1.41.3.64.8 24 Housing and Urban Development     92 PART 92—HOME INVESTMENT PARTNERSHIPS PROGRAM C Subpart C—Consortia; Designation and Revocation of Designation as a Participating Jurisdiction   § 92.107 Revocation of designation as a participating jurisdiction. HUD       HUD may revoke a jurisdiction's designation as a participating jurisdiction if: (a) HUD finds, after reasonable notice and opportunity for hearing as provided in § 92.552(b) that the jurisdiction is unwilling or unable to carry out the provisions of this part, including failure to meet matching contribution requirements; or (b) The jurisdiction's formula allocation falls below $750,000 (or below $500,000 in fiscal years in which Congress appropriates less than $1.5 billion for this part) for three consecutive years, below $625,000 (or below $410,000 in fiscal years in which Congress appropriates less than $1.5 billion for this part) for two consecutive years, or the jurisdiction does not receive a formula allocation in any one year. (c) When HUD revokes a participating jurisdiction's designation as a participating jurisdiction, HUD will reallocate any remaining funds in the jurisdiction's HOME Investment Trust Fund established under § 92.500 in accordance with § 92.451.
24:24:1.1.1.1.41.4.64.1 24 Housing and Urban Development     92 PART 92—HOME INVESTMENT PARTNERSHIPS PROGRAM D Subpart D—Submission Requirements   § 92.150 Submission requirements. HUD       In order to receive its HOME allocation, a participating jurisdiction must submit a consolidated plan in accordance with 24 CFR part 91. That part includes requirements for the content of the consolidated plan, the process of developing the consolidated plan, including citizen participation, the submission date, HUD approval, and amendments.
24:24:1.1.1.1.41.5.64.1 24 Housing and Urban Development     92 PART 92—HOME INVESTMENT PARTNERSHIPS PROGRAM E Subpart E—Program Requirements   § 92.200 Private-public partnership. HUD       Each participating jurisdiction must make all reasonable efforts to maximize participation by the private sector in accordance with section 221 of the Act.
24:24:1.1.1.1.41.5.64.10 24 Housing and Urban Development     92 PART 92—HOME INVESTMENT PARTNERSHIPS PROGRAM E Subpart E—Program Requirements   § 92.209 Tenant-based rental assistance: Eligible costs and requirements. HUD     [61 FR 48750, Sept. 16, 1996, as amended at 62 FR 28928, May 28, 1997; 67 FR 61756, Oct. 1, 2002; 78 FR 44668, July 24, 2013; 88 FR 30496, May 11, 2023; 90 FR 868, Jan. 6, 2025] (a) Eligible costs. Eligible costs are the rental assistance and security deposit payments made to provide tenant-based rental assistance for a family pursuant to this section. Eligible costs also include utility deposit assistance, but only if this assistance is provided with tenant-based rental assistance or security deposit payment. Administration of tenant-based rental assistance is eligible only under general management oversight and coordination at § 92.207(a), except that the costs of inspecting the housing and determining the income eligibility of the family are eligible as costs of the tenant-based rental assistance. (b) General requirement. A participating jurisdiction may use HOME funds for tenant-based rental assistance only if the participating jurisdiction makes the certification about inclusion of this type of assistance in its consolidated plan in accordance with 24 CFR 91.225(d)(1), 91.325(d)(1), or 91.425(a)(2)(i), and specifies local market conditions that lead to the choice of this option. (c) Tenant selection. The participating jurisdiction must select low-income families in accordance with written tenant selection policies and criteria that are based on local housing needs and priorities established in the participating jurisdiction's consolidated plan. (1) Low-income families. Tenant-based rental assistance may only be provided to very low- and low-income families. The participating jurisdiction must determine that the family is very low- or low-income before the assistance is provided. (2) Targeted assistance. (i) The participating jurisdiction may establish a preference for individuals with special needs (e.g., homeless persons or elderly persons) or persons with disabilities. The participating jurisdiction may offer, in conjunction with a tenant-based rental assistance program, particular types of nonmandatory services that may be most appropriate for persons with a special need or a particular disability. Generally, tenant-based rental assistance and the related services s…
24:24:1.1.1.1.41.5.64.11 24 Housing and Urban Development     92 PART 92—HOME INVESTMENT PARTNERSHIPS PROGRAM E Subpart E—Program Requirements   § 92.210 Troubled HOME-assisted rental housing projects. HUD     [90 FR 869, Jan. 6, 2025] (a) The provisions of this section apply only to an existing HOME-assisted rental project that, within the HOME period of affordability, is no longer financially viable or its physical viability has substantively deteriorated due to unforeseen circumstances. (1) For purposes of this section, a HOME-assisted rental project is no longer financially viable through the period of affordability if: (i) The project's operating costs exceed its operating revenue, considering project reserves; (ii) The owner is unable to pay for necessary capital repair costs or ongoing expenses for the project; or (iii) The project reserves are insufficient to be able to operate the project. (2) For purposes of this section, physical viability means a project's current or future ability to maintain affordability based on the physical characteristics and factors of the project's site and improvements. (3) HUD may approve the actions described in paragraphs (b) and (c) of this section to strategically preserve the affordability of a rental project after consideration of market needs, available resources, and the likelihood of the long-term physical and financial viability of the project. (b) Notwithstanding § 92.214, a participating jurisdiction may request and HUD may permit, pursuant to a written memorandum of agreement, a participating jurisdiction to invest additional HOME funds in the existing HOME-assisted rental project. The total HOME funding for the project (original investment plus additional investment) must be necessary to improve the physical and financial viability of the project and may not exceed the per-unit subsidy limit in § 92.250(a) in effect at the time of the additional investment. The use of HOME funds may include, but is not limited to, rehabilitation of the HOME units and recapitalization of project reserves for the HOME units (to fund capital costs). If additional HOME funds are invested, HUD may impose additional conditions, including requiring the participating jurisdiction to extend the period of afford…
24:24:1.1.1.1.41.5.64.12 24 Housing and Urban Development     92 PART 92—HOME INVESTMENT PARTNERSHIPS PROGRAM E Subpart E—Program Requirements   § 92.212 Pre-award costs. HUD     [61 FR 48750, Sept. 16, 1996, as amended at 90 FR 869, Jan. 6, 2025] (a) General. Before the effective date of the HOME Investment Partnership Agreement, the participating jurisdiction may incur costs described in this section which may be charged to the HOME allocation after the award of the HOME allocation, provided the costs are in compliance with the requirements of this part (including environmental review requirements) and with the statutory and regulatory requirements in effect at the time the costs are charged to the HOME allocation. (b) Administrative and planning costs. (1) Eligible administrative and planning costs may be incurred as of the beginning of the participating jurisdiction's consolidated program year (see 24 CFR 91.10) or the date HUD receives the consolidated plan describing the HOME allocation to which the costs will be charged, whichever is later. (2) In any year in which an appropriation has not been enacted 90 days before a participating jurisdiction's program year start date, a participating jurisdiction may incur eligible administrative and planning costs as of the beginning of its program year or the date that HUD receives its consolidated plan describing the HOME allocation to which the costs will be charged, whichever is earlier. (c) Project costs. Eligible project costs may be incurred during the current program year in an amount not to exceed 25% of the current HOME allocation amount, to be charged to the following year's HOME allocation. Before incurring the pre-award costs, the participating jurisdiction must comply with its citizen participation plan requirements addressing 24 CFR 91.105(b)(2), (4), (5) and (g) (local governments) or 24 CFR 91.115(b)(2), (4), (5) and (f) (States). In lieu of a full action plan, the participating jurisdiction may develop a mini-action plan which describes the proposed pre-award projects and costs in accordance with 24 CFR 91.220(c) and includes, if applicable, 24 CFR 91.220(g)(2) (local governments) or 24 CFR 91.320(c) and, if applicable, 24 CFR 91.320(g)(2) (States). The mini-action plan must state tha…
24:24:1.1.1.1.41.5.64.13 24 Housing and Urban Development     92 PART 92—HOME INVESTMENT PARTNERSHIPS PROGRAM E Subpart E—Program Requirements   § 92.213 HOME Funds and Public Housing. HUD     [78 FR 44669, July 24, 2013] (a) General rule. HOME funds may not be used for public housing units. HOME-assisted housing units may not receive Operating Fund or Capital Fund assistance under section 9 of the 1937 Act during the HOME period of affordability. (b) Exception. HOME funds may be used for the development of public housing units, if the units are developed under section 24 of the 1937 Act (HOPE VI) and no Capital Fund assistance under section 9(d) of the Act is used for the development of the unit. Units developed with both HOME and HOPE VI may receive operating assistance under section 9 of the 1937 Act. Units developed with HOME and HOPE VI funds under this paragraph may subsequently receive Capital Funds for rehabilitation or modernization. (c) Using HOME funds in public housing projects. Consistent with § 92.205(d), HOME funds may be used for affordable housing units in a project that also contains public housing units, provided that the HOME funds are not used for the public housing units (except as provided in paragraph (b) of this section) and HOME funds are used only for eligible costs in accordance with this part. (d) The HOME funds must be used in accordance with the requirements of this part and the project must meet the requirements of this part, including rent requirements in § 92.252.
24:24:1.1.1.1.41.5.64.14 24 Housing and Urban Development     92 PART 92—HOME INVESTMENT PARTNERSHIPS PROGRAM E Subpart E—Program Requirements   § 92.214 Prohibited activities and fees. HUD     [61 FR 48750, Sept. 16, 1996, as amended at 62 FR 28929, May 28, 1997; 67 FR 61756, Oct. 1, 2002; 72 FR 16685, Apr. 4, 2007; 78 FR 44669, July 24, 2013; 80 FR 75935, Dec. 7, 2015; 90 FR 869, Jan. 6, 2025] (a) HOME funds may not be used to: (1) Provide project reserve accounts, except as provided in § 92.206(d)(5), or operating subsidies; (2) Provide tenant-based rental assistance for the special purposes of the existing section 8 program, in accordance with section 212(d) of the Act; (3) Provide non-federal matching contributions required under any other Federal program; (4) Provide assistance for uses authorized under section 9 of the 1937 Act (Public Housing Capital and Operating Funds); (5) Provide assistance to eligible low-income housing under 24 CFR part 248 (Prepayment of Low Income Housing Mortgages), except that assistance may be provided to priority purchasers as defined in 24 CFR 248.101; (6) Provide assistance (other than tenant-based rental assistance, assistance to a homebuyer to acquire housing previously assisted with HOME funds, assistance permitted under § 92.210, or assistance to preserve affordability of homeownership housing in accordance with § 92.254(b)) to a project previously assisted with HOME funds during the period of affordability. However, additional HOME funds may be committed to a project for up to one year after project completion (see § 92.502), but the amount of HOME funds in the project may not exceed the maximum per-unit subsidy amount established under § 92.250 at the time of underwriting; (7) Pay for the acquisition of property owned by the participating jurisdiction, unless such property is acquired by the participating jurisdiction in anticipation of carrying out a HOME project; (8) Pay delinquent taxes, fees, or charges on properties to be assisted with HOME funds; (9) Pay for any cost that is not eligible under §§ 92.206 through 92.209; or (10) Pay for surety bonds, security deposit insurance, or instruments similar to surety bonds or security deposit insurance, in lieu of or in addition to a security deposit in units occupied by tenants receiving tenant-based rental assistance (including assistance in paying security deposits). (b)(1) Participating jurisdictio…
24:24:1.1.1.1.41.5.64.15 24 Housing and Urban Development     92 PART 92—HOME INVESTMENT PARTNERSHIPS PROGRAM E Subpart E—Program Requirements   § 92.215 Limitation on jurisdictions under court order. HUD       Limitations on the use of HOME funds in connection with litigation involving discrimination or fair housing are set forth in section 224 of the Act.
24:24:1.1.1.1.41.5.64.2 24 Housing and Urban Development     92 PART 92—HOME INVESTMENT PARTNERSHIPS PROGRAM E Subpart E—Program Requirements   § 92.201 Distribution of assistance. HUD     [61 FR 48750, Sept. 16, 1996, as amended at 78 FR 44666, July 24, 2013; 90 FR 866, Jan. 6, 2025] (a) Local. (1) Each local participating jurisdiction must, insofar as is feasible, distribute HOME funds geographically within its boundaries and among different categories of housing need, according to the priorities of housing need identified in its approved consolidated plan. (2) The participating jurisdiction may only invest its HOME funds in eligible projects within its boundaries, or in jointly funded projects within the boundaries of contiguous local jurisdictions which serve residents from both jurisdictions. For a project to be jointly funded, both jurisdictions must make a financial contribution to the project. A jurisdiction's financial contribution may take the form of a grant or loan (including a loan of funds that comes from other federal sources and that are in the jurisdiction's control, such as CDBG program funds) or relief of a significant tax or fee (such as waiver of impact fees, property taxes, or other taxes or fees customarily imposed on projects within the jurisdiction). A participating jurisdiction may not commit HOME funds to a project outside its jurisdiction and within the boundaries of a contiguous local jurisdiction until it has secured the financial contribution of the jurisdiction in which the project is located. (b) State. (1) Each State participating jurisdiction is responsible for distributing HOME funds throughout the State according to the State's assessment of the geographical distribution of the housing needs within the State, as identified in the State's approved consolidated plan. The State must distribute HOME funds to rural areas in amounts that take into account the non-metropolitan share of the State's total population and objective measures of rural housing need, such as poverty and substandard housing, as set forth in the State's approved consolidated plan. To the extent the need is within the boundaries of a participating unit of general local government, the State and the unit of general local government shall coordinate activities to address that need. (2) …
24:24:1.1.1.1.41.5.64.3 24 Housing and Urban Development     92 PART 92—HOME INVESTMENT PARTNERSHIPS PROGRAM E Subpart E—Program Requirements   § 92.202 Site and neighborhood standards. HUD     [61 FR 48750, Sept. 16, 1996, as amended at 62 FR 28928, May 28, 1997; 78 FR 44666, July 24, 2013; 89 FR 38290, May 7, 2024] (a) General. A participating jurisdiction must administer its HOME program in a manner that provides housing that is suitable from the standpoint of facilitating and furthering full compliance with the applicable provisions of title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d—2000d-4), the Fair Housing Act (42 U.S.C. 3601 et seq., E.O. 11063 (3 CFR, 1959-1963 Comp., p. 652), and HUD regulations issued pursuant thereto; and promotes greater choice of housing opportunities. (b) New rental housing. In carrying out the site and neighborhood requirements with respect to new construction of rental housing, a participating jurisdiction is responsible for making the determination that proposed sites for new construction meet the requirements in 24 CFR 983.55(e)(2) and (3).
24:24:1.1.1.1.41.5.64.4 24 Housing and Urban Development     92 PART 92—HOME INVESTMENT PARTNERSHIPS PROGRAM E Subpart E—Program Requirements   § 92.203 Income determinations. HUD     [88 FR 9662, Feb. 14, 2023, as amended at 90 FR 866, Jan. 6, 2025] (a) Income eligibility. To determine a family is income eligible, the participating jurisdiction must determine the family's income as follows: (1) If a family is applying for or living in a HOME-assisted rental unit, and the unit is assisted by a Federal or State project-based rental subsidy program, then a participating jurisdiction may accept the public housing agency, owner, or rental subsidy provider's determination of the family's annual income and adjusted income under that program's rules. (2) If a family is applying for or living in a HOME-assisted rental unit, and the family is assisted by a Federal tenant-based rental assistance program ( e.g., housing choice vouchers, etc.), then a participating jurisdiction may accept the rental assistance provider's determination of the family's annual income and adjusted income under that program's rules. (3) If a family is applying, renewing, or entering into a new rental assistance contract for tenant-based rental assistance pursuant to § 92.209, or applying for or living in a HOME-assisted rental unit in accordance with § 92.252, and the family is assisted by a form of Federal, State, or local public assistance ( e.g., TANF, Medicaid, LIHTC, local rental subsidy programs, etc.) which examines the annual income of the family each year, then a participating jurisdiction may accept a written statement from a Federal or non-Federal entity administering the assistance. The statement must indicate the tenant's family size and state the amount of the family's annual income. When accepting the statement from a government administrator, the participating jurisdiction must still adjust income in accordance with paragraph (f) of this section. The statement must be for an income determination made within the previous 12-month period. (4) In all other cases, the participating jurisdiction must calculate annual income in accordance with paragraphs (b) through (e) of this section and calculate adjusted income in accordance with paragraph (f) of this section. (b) Dete…
24:24:1.1.1.1.41.5.64.5 24 Housing and Urban Development     92 PART 92—HOME INVESTMENT PARTNERSHIPS PROGRAM E Subpart E—Program Requirements   § 92.204 Applicability of requirements to entities that receive a reallocation of HOME funds, other than participating jurisdictions. HUD     [69 FR 15673, Mar. 26, 2004, as amended at 80 FR 75935, Dec. 7, 2015] (a) Jurisdictions other than participating jurisdictions and community housing development organizations receiving competitive reallocations from HUD are subject to the same requirements in subpart E (Program Requirements), subpart F (Project Requirements), subpart K (Program Administration), and subpart L (Performance Reviews and Sanctions) of this part as participating jurisdictions, except for the following: (1) Subpart E (Program Requirements): the matching contribution requirements in § 92.218 through § 92.221 do not apply. (2) Subpart K (Program Administration): (i) Section 92.500 (The HOME Investment Trust Fund) does not apply. HUD will establish a HOME account in the United States Treasury and the HOME funds must be used for approved activities. A local account must be established for program income. HUD will recapture HOME funds in the HOME Treasury account by the amount of: (A) Any funds that are not committed within 24 months after the last day of the month in which HUD notifies the entity of HUD's execution of the HOME Investment Partnership Agreement; (B) Any funds that are not expended within five years after the last day of the month in which HUD notifies the entity of HUD's execution of the HOME Investment Partnership Agreement; and (C) Any penalties assessed by HUD under § 92.552. (ii) Section 92.502 (Program disbursement and information system) applies, except that references to the HOME Investment Trust Fund mean HOME account and the reference to 24 CFR part 58 does not apply. In addition, § 92.502(c) does not apply, and instead, compliance with Treasury Circular No. 1075 (31 CFR part 205) and 2 CFR 200.305 is required. (iii) Section 92.503 (Program income, repayments, and recaptured funds) applies, except that program income may be retained provided the funds are used for eligible activities in accordance with the requirements of this section. (3) Section 92.504 (Participating jurisdiction responsibilities; written agreements; on-site inspections) applies, except that the written agre…
24:24:1.1.1.1.41.5.64.6 24 Housing and Urban Development     92 PART 92—HOME INVESTMENT PARTNERSHIPS PROGRAM E Subpart E—Program Requirements   § 92.205 Eligible activities: General. HUD     [61 FR 48750, Sept. 16, 1996, as amended at 62 FR 28928, May 28, 1997; 78 FR 44667, July 24, 2013; 90 FR 867, Jan. 6, 2025] (a) Eligible activities. (1) HOME funds may be used by a participating jurisdiction to provide incentives to develop and support affordable rental housing and homeownership affordability through the acquisition (including assistance to homebuyers), new construction, reconstruction, or rehabilitation of nonluxury housing with suitable amenities, including real property acquisition, site improvements, conversion, demolition, and other expenses, including financing costs, relocation expenses of any displaced persons, families, businesses, or organizations; to provide tenant-based rental assistance, including security deposits; to provide payment of reasonable administrative and planning costs; and to provide for the payment of operating expenses of community housing development organizations. The housing must be permanent or transitional housing. The specific eligible costs for these activities are set forth in §§ 92.206 through 92.209. The activities and costs are eligible only if the housing meets the property standards in § 92.251 upon project completion. (2) Acquisition of vacant land or demolition may only be undertaken for a project that will provide affordable housing and meets the requirements for a specific local project in paragraph (2)(i) of the definition of “commitment” in § 92.2. (3) Conversion of an existing structure to affordable housing is rehabilitation, unless the conversion entails adding one or more units beyond the existing walls, in which case, the project is new construction for purposes of this part. (4) Manufactured housing. HOME funds may be used to purchase and/or rehabilitate a manufactured housing unit, or purchase the land upon which a manufactured housing unit is located. Except for existing, owner-occupied manufactured housing that is rehabilitated with HOME funds, the manufactured housing unit must, at the time of project completion, be connected to permanent utility hook-ups and be located on land that is owned by the manufactured housing unit owner or land for which the ma…
24:24:1.1.1.1.41.5.64.7 24 Housing and Urban Development     92 PART 92—HOME INVESTMENT PARTNERSHIPS PROGRAM E Subpart E—Program Requirements   § 92.206 Eligible project costs. HUD     [61 FR 48750, Sept. 16, 1996, as amended at 62 FR 28928, May 28, 1997; 64 FR 50224, Sept. 15, 1999; 78 FR 44667, July 24, 2013; 90 FR 867, Jan. 6, 2025] HOME funds may be used to pay the following eligible costs: (a) Development hard costs. The actual cost of constructing or rehabilitating housing. These costs include the following: (1) For new construction projects, costs to meet the new construction standards in § 92.251(a); (2) For rehabilitation, costs to meet the property standards for rehabilitation projects in § 92.251(b); (3) For both new construction and rehabilitation projects, costs: (i) To demolish existing structures; (ii) To make utility connections including off-site connections from the property line to the adjacent street; and (iii) To make improvements to the project site that are in keeping with improvements of surrounding, standard projects. Site improvements may include on-site roads and sewer and water lines necessary to the development of the project. The project site is the property, owned by the project owner, upon which the project is located. (4) For both new construction and rehabilitation of multifamily rental housing projects, costs to construct or rehabilitate laundry and community facilities that are located within the same building as the housing and which are for the use of the project residents and their guests. (5) Costs to make utility connections or to make improvements to the project site, in accordance with the provisions of § 92.206(a)(3) (ii) and (iii) are also eligible in connection with acquisition of standard housing. (b) Refinancing costs. The cost to refinance existing debt secured by a housing project that is being rehabilitated with HOME funds. These costs include the following: (1) For single family (one- to four- family) owner-occupied housing, when loaning HOME funds to rehabilitate the housing, if the refinancing is necessary to reduce the overall housing costs to the borrower and make the housing more affordable and if the rehabilitation cost is greater than the amount of debt that is refinanced. (2) For single family or multifamily projects, when loaning HOME funds to rehabilitate the units if…
24:24:1.1.1.1.41.5.64.8 24 Housing and Urban Development     92 PART 92—HOME INVESTMENT PARTNERSHIPS PROGRAM E Subpart E—Program Requirements   § 92.207 Eligible administrative and planning costs. HUD     [61 FR 48750, Sept. 16, 1996, as amended at 67 FR 61756, Oct. 1, 2002; 69 FR 16766, Mar. 30, 2004; 72 FR 16685, Apr. 4, 2007; 78 FR 44668, July 24, 2013; 80 FR 75935, Dec. 7, 2015; 90 FR 868, Jan. 6, 2025] A participating jurisdiction may expend, for payment of reasonable administrative and planning costs of the HOME program and ADDI, an amount of HOME funds that is not more than ten percent of the sum of the Fiscal Year HOME basic formula allocation plus any funds received in accordance with § 92.102(b) to meet or exceed participation threshold requirements that Fiscal Year. A state that transfers any HOME funds in accordance with § 92.102(b) must exclude these funds in calculating the amount it may expend for administrative and planning costs. A participating jurisdiction may also expend, for payment of reasonable administrative and planning costs of the HOME program and the ADDI described in subpart M of this part, a sum up to ten percent of the program income deposited into its local account or received and reported by its state recipients or subrecipients during the program year. A participating jurisdiction may expend such funds directly or may authorize its state recipients or subrecipients, if any, to expend all or a portion of such funds, provided total expenditures for planning and administrative costs do not exceed the maximum allowable amount. Reasonable administrative and planning costs include: (a) General management, oversight and coordination. Reasonable costs of overall program management, coordination, monitoring, and evaluation. Such costs include, but are not limited to, necessary expenditures for the following: (1) Salaries, wages, and related costs of the participating jurisdiction's staff. In charging costs to this category the participating jurisdiction may either include the entire salary, wages, and related costs allocable to the program of each person whose primary responsibilities with regard to the program involves program administration assignments, or the prorated share of the salary, wages, and related costs of each person whose job includes any program administration assignments. The participating jurisdiction may use only one of these methods. Program administration include…
24:24:1.1.1.1.41.5.64.9 24 Housing and Urban Development     92 PART 92—HOME INVESTMENT PARTNERSHIPS PROGRAM E Subpart E—Program Requirements   § 92.208 Eligible community housing development organization (CHDO) operating expense and capacity building costs. HUD     [61 FR 48750, Sept. 16, 1996, as amended at 78 FR 44668, July 24, 2013; 90 FR 868, Jan. 6, 2025] (a) Up to 5 percent of a participating jurisdiction's fiscal year HOME allocation may be used for the operating expenses of community housing development organizations (CHDOs). This amount is in addition to amounts set aside for housing projects that are owned, developed, or sponsored by CHDOs as described in § 92.300(a). These funds may not be used to pay operating expenses incurred by a CHDO acting as a subrecipient or contractor under the HOME Program. Operating expenses means reasonable and necessary costs for the operation of the community housing development organization. Such costs include salaries, wages, and other employee compensation and benefits; employee education, training, and travel; rent; utilities; communication costs; taxes; insurance; equipment; materials; and supplies. The requirements and limitations on the receipt of these funds by CHDOs are set forth in § 92.300(e) and (f). (b) HOME funds may be used for capacity building costs under § 92.300(b). (c) An organization that meets the definition of “community housing development organization” in § 92.2, except for the requirements in paragraph (9) of the definition, may receive HOME funds for operating expenses in accordance with paragraph (a) of this section in order to develop demonstrated capacity and qualify as a community housing development organization.
24:24:1.1.1.1.41.5.65.16 24 Housing and Urban Development     92 PART 92—HOME INVESTMENT PARTNERSHIPS PROGRAM E Subpart E—Program Requirements   § 92.216 Income targeting: Tenant-based rental assistance and rental units. HUD     [61 FR 48750, Sept. 16, 1996, as amended at 90 FR 870, Jan. 6, 2025] Each participating jurisdiction must invest HOME funds made available during a fiscal year so that, with respect to tenant-based rental assistance and rental units: (a) Not less than 90 percent of: (1) The families receiving such rental assistance are families whose annual incomes do not exceed 60 percent of the median family income for the area, as determined and made available by HUD with adjustments for smaller and larger families (except that HUD may establish income ceilings higher or lower than 60 percent of the median for the area on the basis of HUD's findings that such variations are necessary because of prevailing levels of construction cost or fair market rent, or unusually high or low family income) at the time of occupancy or at the time funds are invested, whichever is later; or (2) The housing units assisted with such funds are occupied by families having such incomes; and (b) The remainder of: (1) The families receiving such rental assistance are households that qualify as low-income families (other than families described in paragraph (a)(1) of this section) at the time of occupancy or at the time funds are invested, whichever is later; or (2) The housing units assisted with such funds are occupied by such households.
24:24:1.1.1.1.41.5.65.17 24 Housing and Urban Development     92 PART 92—HOME INVESTMENT PARTNERSHIPS PROGRAM E Subpart E—Program Requirements   § 92.217 Income targeting: Homeownership. HUD     [67 FR 61756, Oct. 1, 2002, as amended at 90 FR 870, Jan. 6, 2025] Each participating jurisdiction must invest HOME funds made available during a fiscal year so that with respect to homeownership assistance, 100 percent of these funds are invested in housing units that are occupied by households that qualify as low-income families.
24:24:1.1.1.1.41.5.66.18 24 Housing and Urban Development     92 PART 92—HOME INVESTMENT PARTNERSHIPS PROGRAM E Subpart E—Program Requirements   § 92.218 Amount of matching contribution. HUD       (a) General. Each participating jurisdiction must make contributions to housing that qualifies as affordable housing under the HOME program, throughout a fiscal year. The contributions must total not less than 25 percent of the funds drawn from the jurisdiction's HOME Investment Trust Fund Treasury account in that fiscal year, excluding funds drawn for purposes identified in paragraph (c) of this section. (b) Shortfall amount from State or local resources. Amounts made available under § 92.102(b)(2) from the resources of a State (other than a transfer of the State's formula allocation), the local participating jurisdiction, or both, to enable the local participating jurisdiction to meet the participation threshold amount are not required to be matched and do not constitute matching contributions. (c) HOME funds not required to be matched. HOME funds used for administrative and planning costs (pursuant to § 92.207); community housing development organization operating expenses (pursuant to § 92.208); capacity building (pursuant to § 92.300(b)) of community housing development organizations; and project specific assistance to community housing development organizations (pursuant to § 92.301) when the participating jurisdiction waives repayment under the provisions of § 92.301(a)(3) or § 92.301(b)(3) are not required to be matched. (d) Match contribution for other programs. Contributions that have been or will be counted as satisfying a matching requirement of another Federal grant or award may not count as satisfying the matching contribution requirement for the HOME program.
24:24:1.1.1.1.41.5.66.19 24 Housing and Urban Development     92 PART 92—HOME INVESTMENT PARTNERSHIPS PROGRAM E Subpart E—Program Requirements   § 92.219 Recognition of matching contribution. HUD     [61 FR 48750, Sept. 16, 1996, as amended at 62 FR 28929, May 28, 1997; 90 FR 870, Jan. 6, 2025] (a) Match contribution to HOME-assisted housing. A contribution is recognized as a matching contribution if it is made with respect to: (1) A tenant who is assisted with HOME funds; (2) A HOME-assisted unit; (3) The portion of a project that is not HOME-assisted provided that at least 50 percent of the housing units in the project are HOME-assisted. If the match contribution to the portion of the project that is not HOME-assisted meets the affordable housing requirements of § 92.219(b)(2), the percentage requirement for HOME-assisted units does not apply; or (4) The commercial space in a mixed-use project in which at least 51 percent of the floor space is residential provided that at least 50 percent of the housing units are HOME-assisted. (b) Match contribution to affordable housing that is not HOME-assisted. The following requirements apply for recognition of matching contributions made to affordable housing that is not HOME-assisted: (1) For tenant-based rental assistance that is not HOME-assisted: (i) The contribution must be made with respect to a tenant who is assisted with tenant-based rental assistance that meets the requirements of § 92.203 (Income determinations) and paragraphs (a), (c), (f), and (i) of § 92.209 (Tenant-based rental assistance); and (ii) The participating jurisdiction must demonstrate in writing that such assistance meets the provisions of §§ 92.203 and 92.209 (except § 92.209(e)). (2) For affordable housing that is not HOME-assisted: (i) The contribution must be made with respect to housing that qualifies as affordable housing under § 92.252 or § 92.254. (ii) The participating jurisdiction must execute, with the owner of the housing (or, if the participating jurisdiction is the owner, with the manager or developer), a written agreement that imposes and enumerates all of the requirements applicable to the project, including affordability requirements in § 92.252 or § 92.254; tenant protection requirements in § 92.253; property standards requirements in § 92.251; and incom…
24:24:1.1.1.1.41.5.66.20 24 Housing and Urban Development     92 PART 92—HOME INVESTMENT PARTNERSHIPS PROGRAM E Subpart E—Program Requirements   § 92.220 Form of matching contribution. HUD     [61 FR 48750, Sept. 16, 1996, as amended at 62 FR 28929, May 28, 1997; 62 FR 44840, Aug. 22, 1997; 80 FR 75935, Dec. 7, 2015; 90 FR 870, Jan. 6, 2025] (a) Eligible forms. Matching contributions must be made from nonfederal resources and may be in the form of one or more of the following: (1) Cash contributions from nonfederal sources. To be recognized as a cash contribution, funds must be contributed permanently to the HOME program (or to affordable housing not assisted with HOME funds), regardless of the form of investment provided to the project. Therefore, to receive match credit for the full amount of a loan to a HOME project, all repayment, interest, or other return on investment of the contribution must be deposited in the local account of the participating jurisdiction's HOME Investment Trust Fund to be used for eligible HOME activities in accordance with the requirements of this part. A cash contribution to affordable housing that is not assisted with HOME funds must be contributed permanently to the project. Repayments of matching contributions in affordable housing projects, as defined in § 92.219(b), that are not HOME-assisted, must be made to the local account of the participating jurisdiction's HOME Investment Trust Fund to get match credit for the full loan amount. (i) A cash contribution may be made by the participating jurisdiction, non-Federal public entities, private entities, or individuals, except as prohibited under paragraph (b)(4) of this section. A cash contribution made to a nonprofit organization for use in a HOME project may be counted as a matching contribution. (ii) A cash contribution may be made from program income (as defined by 2 CFR 200.80) from a Federal grant earned after the end of the award period if no Federal requirements govern the disposition of the program income. Included in this category are repayments from closed out grants under the Urban Development Action Grant Program (24 CFR part 570, subpart G) and the Housing Development Grant Program (24 CFR part 850), and from the Rental Rehabilitation Grant Program (24 CFR part 511) after all fiscal year Rental Rehabilitation grants have been closed out. (iii) The …
24:24:1.1.1.1.41.5.66.21 24 Housing and Urban Development     92 PART 92—HOME INVESTMENT PARTNERSHIPS PROGRAM E Subpart E—Program Requirements   § 92.221 Match credit. HUD     [61 FR 48750, Sept. 16, 1996, as amended at 78 FR 44670, July 24, 2013; 90 FR 870, Jan. 6, 2025] (a) When credit is given. Contributions are credited on a fiscal year basis at the time the contribution is made, as follows: (1) A cash contribution is credited when the funds are expended. (2) The grant equivalent of a below-market interest rate loan is credited at the time of the loan closing. (3) The value of state or local taxes, fees, or other charges that are normally and customarily imposed but are waived, foregone, or deferred is credited at the time the state or local government or other public or private entity officially waives, forgoes, or defers the taxes, fees, or other charges and notifies the project owner. (4) The value of donated land or other real property is credited at the time ownership of the property is transferred to the HOME project (or affordable housing) owner. (5) The cost of investment in infrastructure directly required for HOME-assisted projects is credited at the time funds are expended for the infrastructure or at the time the HOME funds are committed to the project if the infrastructure was completed before the commitment of HOME funds. (6) The value of donated material is credited as match at the time it is used for affordable housing. (7) The value of the donate use of site preparation or construction equipment is credited as match at the time the equipment is used for affordable housing. (8) The value of donated or voluntary labor or professional services is credited at the time the work is performed. (9) A loan made from bond proceeds under § 92.220(a)(5) is credited at the time of the loan closing. (10) The direct cost of social services provided to residents of HOME-assisted units is credited at the time that the social services are provided during the period of affordability. (11) The direct cost of homebuyer counseling services provided to families that purchase HOME-assisted units is credited at the time that the homebuyer purchases the unit or for post-purchase counseling services, at the time the counseling services are provided. (b) Excess match. Con…
24:24:1.1.1.1.41.5.66.22 24 Housing and Urban Development     92 PART 92—HOME INVESTMENT PARTNERSHIPS PROGRAM E Subpart E—Program Requirements   § 92.222 Reduction of matching contribution requirement. HUD     [61 FR 48750, Sept. 16, 1996, as amended at 78 FR 44670, July 24, 2013] (a) Reduction for fiscal distress. HUD will determine match reductions annually. (1) Distress criteria for local government participating jurisdictions. If a local government participating jurisdiction satisfies both of the distress factors in paragraphs (a)(1)(i) and (ii) of this section, it is in severe fiscal distress and its match requirement will be reduced by 100% for the period specified in paragraph (a)(3) of this section. If a local government participating jurisdiction satisfies either distress factor in paragraphs (a)(1)(i) or (ii) of this section, it is in fiscal distress and its match requirement will be reduced by 50 percent, for the period specified in paragraph (a)(4) of this section. (i) Poverty rate. The average poverty rate in the participating jurisdiction was equal to or greater than 125 percent of the average national poverty rate during the calendar year for which the most recent data are available, as determined according to information of the Bureau of the Census. (ii) Per capita income. The average per capita income in the participating jurisdiction was less than 75 percent of the average national per capita income, during the calendar year for which the most recent data are available, as determined according to information from the Bureau of the Census. (2) Distress criteria for participating jurisdictions that are States. If a State satisfies at least 2 of the 3 distress factors in paragraphs (a)(2)(i) through (iii) of this section, it is in severe fiscal distress and its match requirement will be reduced by 100% for the period specified in paragraph (a)(3) of this section. If a State satisfies any 1 of the 3 distress factors in paragraphs (a)(2)(i) through (iii) of this section, it is in fiscal distress and its match requirement will be reduced by 50 percent, for the period specified in paragraph (a)(4) of this section. (i) Poverty rate. The average poverty rate in the State was equal to or greater than 125 percent of the average national poverty rate during the calen…
24:24:1.1.1.1.41.6.67.1 24 Housing and Urban Development     92 PART 92—HOME INVESTMENT PARTNERSHIPS PROGRAM F Subpart F—Project Requirements   § 92.250 Maximum per-unit subsidy amount, underwriting, and subsidy layering. HUD     [78 FR 44670, July 24, 2013, as amended at 90 FR 16086, Apr. 17, 2025] (a) Maximum per-unit subsidy amount. The total amount of HOME funds that a participating jurisdiction may invest on a per-unit basis in affordable housing may not exceed the per-unit dollar limits established by HUD in accordance with section 212(e) of the Act. HUD will publish the per-unit dollar limits for the area in which the housing is located annually. HUD will publish its methodology for determining maximum per-unit dollar limits through a publication in the Federal Register with the opportunity for comment. (b) Underwriting and subsidy layering. Before committing funds to a project, the participating jurisdiction must evaluate the project in accordance with guidelines that it has adopted for determining a reasonable level of profit or return on owner's or developer's investment in a project and must not invest any more HOME funds, alone or in combination with other governmental assistance, than is necessary to provide quality affordable housing that is financially viable for a reasonable period (at minimum, the period of affordability in § 92.252 or § 92.254) and that will not provide a profit or return on the owner's or developer's investment that exceeds the participating jurisdiction's established standards for the size, type, and complexity of the project. The participating jurisdiction's guidelines must require the participating jurisdiction to undertake: (1) An examination of the sources and uses of funds for the project and a determination that the costs are reasonable; and (2) An assessment, at minimum, of the current market demand in the neighborhood in which the project will be located, the experience of the developer, the financial capacity of the developer, and firm written financial commitments for the project. (3) For projects involving rehabilitation of owner-occupied housing pursuant to § 92.254(b): (i) An underwriting analysis of the homeowner's ability to repay the HOME-funded rehabilitation loan is required only if the loan is an amortizing loan; and (ii) A market analysis o…
24:24:1.1.1.1.41.6.67.2 24 Housing and Urban Development     92 PART 92—HOME INVESTMENT PARTNERSHIPS PROGRAM F Subpart F—Project Requirements   § 92.251 Property standards and inspections. HUD     [78 FR 44670, July 24, 2013, as amended at 81 FR 92635, Dec. 20, 2016; 88 FR 30496, May 11, 2023; 90 FR 870, Jan. 6, 2025] (a) New construction projects —(1) State and local codes, ordinances, and zoning requirements. Housing that is newly constructed with HOME funds must meet all applicable State and local codes, ordinances, and zoning requirements. HOME-assisted new construction projects must meet State or local residential and building codes, as applicable or, in the absence of a State or local building code, the International Residential Code or International Building Code (as applicable to the type of housing) of the International Code Council. The housing must meet the applicable requirements upon project completion. (2) Construction progress and final inspections. The participating jurisdiction must conduct on-site progress and final inspections of construction to ensure that work is done in accordance with the applicable codes, the construction contract, and construction documents. Before completing the project in the disbursement and information system established by HUD, the participating jurisdiction must perform an on-site inspection of the project to determine that all contracted work has been completed and that the project complies with the property standards and requirements in this paragraph (a). All inspections performed by the participating jurisdiction must be conducted in accordance with the participating jurisdiction's inspection procedures. (3) HUD requirements. All new construction projects must also meet the following requirements upon project completion, unless an earlier deadline is otherwise required by the applicable statute, regulation, or standard: (i) Accessibility. The housing must meet the accessibility requirements of 24 CFR part 8, which implements section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794), and Titles II and III of the Americans with Disabilities Act (42 U.S.C. 12131-12189) implemented at 28 CFR parts 35 and 36, as applicable. Covered multifamily dwellings, as defined at 24 CFR 100.201, must also meet the design and construction requirements at 24 CFR 100.205, which i…
24:24:1.1.1.1.41.6.67.3 24 Housing and Urban Development     92 PART 92—HOME INVESTMENT PARTNERSHIPS PROGRAM F Subpart F—Project Requirements   § 92.252 Qualification as affordable housing: Rental housing. HUD     [90 FR 873, Jan. 6, 2025] The HOME-assisted units in a rental housing project must be occupied by households that are eligible as low-income families and must meet the requirements of this section to qualify as affordable housing. If the housing is not occupied by eligible tenants within six months following the date of project completion, the participating jurisdiction must revise its marketing plan to enable the project to reach required occupancy. The participating jurisdiction must repay HOME funds invested in any housing unit that has not been rented to eligible tenants within 18 months after the date of project completion. The affordability requirements in this section also apply to the HOME-assisted non-owner-occupied units in single family housing purchased with HOME funds in accordance with § 92.254. A tenant must have a written lease that complies with § 92.253. (a) HOME rent limits. The rent for a HOME-assisted unit must not exceed the rent limits in this section. HUD will publish the HOME rent limits on an annual basis, with adjustments for number of bedrooms in the unit. The rent limits do not apply to any rental assistance or subsidy payment provided under a Federal, State, or local rental assistance or subsidy program. Regardless of changes in fair market rents and in median income over time, the rents for a project are not required to be lower than the HOME rent limits for the project in effect at the time of project commitment. The participating jurisdiction may designate (in its written agreement with the owner) more than the minimum HOME units in a rental housing project, regardless of project size. The rent limits apply to the rent plus the utilities or utility allowance. (1) High HOME rent limits. If a low-income family is participating in a program where the family pays as a contribution toward rent no more than 30 percent of the family's monthly adjusted income or 10 percent of the family's monthly income, then the maximum rent due from the family is the family's contribution. For all other cases, the rent doe…
24:24:1.1.1.1.41.6.67.4 24 Housing and Urban Development     92 PART 92—HOME INVESTMENT PARTNERSHIPS PROGRAM F Subpart F—Project Requirements   § 92.253 Tenant protections and selection. HUD     [61 FR 48750, Sept. 16, 1996, as amended at 67 FR 61756, Oct. 1, 2002; 78 FR 44674, July 24, 2013; 81 FR 80803, Nov. 16, 2016; 89 FR 38290, May 7, 2024] (a) Lease. There must be a written lease between the tenant and the owner of rental housing assisted with HOME funds that is for a period of not less than 1 year, unless by mutual agreement between the tenant and the owner a shorter period is specified. The lease must incorporate the VAWA lease term/addendum required under § 92.359(e), except as otherwise provided by § 92.359(b). (b) Prohibited lease terms. The lease may not contain any of the following provisions: (1) Agreement to be sued. Agreement by the tenant to be sued, to admit guilt, or to a judgment in favor of the owner in a lawsuit brought in connection with the lease; (2) Treatment of property. Agreement by the tenant that the owner may take, hold, or sell personal property of household members without notice to the tenant and a court decision on the rights of the parties. This prohibition, however, does not apply to an agreement by the tenant concerning disposition of personal property remaining in the housing unit after the tenant has moved out of the unit. The owner may dispose of this personal property in accordance with State law; (3) Excusing owner from responsibility. Agreement by the tenant not to hold the owner or the owner's agents legally responsible for any action or failure to act, whether intentional or negligent; (4) Waiver of notice. Agreement of the tenant that the owner may institute a lawsuit without notice to the tenant; (5) Waiver of legal proceedings. Agreement by the tenant that the owner may evict the tenant or household members without instituting a civil court proceeding in which the tenant has the opportunity to present a defense, or before a court decision on the rights of the parties; (6) Waiver of a jury trial. Agreement by the tenant to waive any right to a trial by jury; (7) Waiver of right to appeal court decision. Agreement by the tenant to waive the tenant's right to appeal, or to otherwise challenge in court, a court decision in connection with the lease; (8) Tenant chargeable with cost o…
24:24:1.1.1.1.41.6.67.5 24 Housing and Urban Development     92 PART 92—HOME INVESTMENT PARTNERSHIPS PROGRAM F Subpart F—Project Requirements   § 92.254 Qualification as affordable housing: Homeownership. HUD     [61 FR 48750, Sept. 16, 1996, as amended at 67 FR 61756, Oct. 1, 2002; 68 FR 10161, Mar. 4, 2003; 69 FR 16766, Mar. 30, 2004; 69 FR 68052, Nov. 22, 2004; 72 FR 16685, Apr. 4, 2007; 78 FR 44674, July 24, 2013; 90 FR 881, Jan. 6, 2025] (a) Acquisition with or without rehabilitation. Housing that is for acquisition by a family must meet the affordability requirements of this paragraph (a). (1) The housing must be single family housing. (2) The housing must be modest housing as follows: (i) In the case of acquisition of newly constructed housing or standard housing, the housing has a purchase price for the type of single family housing that does not exceed 95 percent of the median purchase price for the area, as described in paragraph (a)(2)(iii) of this section. (ii) In the case of acquisition with rehabilitation, the housing has an estimated value after rehabilitation that does not exceed 95 percent of the median purchase price for the area, described in paragraph (a)(2)(iii) of this section. (iii) If a participating jurisdiction intends to use HOME funds for homebuyer assistance or for the rehabilitation of owner-occupied single family properties, the participating jurisdiction must use the HOME affordable homeownership limits provided by HUD for newly constructed housing and for existing housing. (A) HUD will provide limits for affordable newly constructed housing based on 95 percent of the median purchase price for the area using Federal Housing Administration (FHA) single family mortgage program data for newly constructed housing, with a minimum limit based on 95 percent of the U.S. median purchase price for new construction for nonmetropolitan areas. (B) HUD will provide limits for affordable existing housing based on 95 percent of the median area purchase price for the area using FHA single family mortgage program data for existing housing and other appropriate data that are available Nation-wide for purchase of existing housing, with a minimum limit based on 95 percent of the State-wide nonmetropolitan area median area purchase price using this data. (iv) In lieu of the limits provided by HUD, the participating jurisdiction may determine 95 percent of the median area purchase price for single family housing in the jurisdiction …
24:24:1.1.1.1.41.6.67.6 24 Housing and Urban Development     92 PART 92—HOME INVESTMENT PARTNERSHIPS PROGRAM F Subpart F—Project Requirements   § 92.255 Purchase of HOME units by in-place tenants. HUD     [90 FR 886, Jan. 6, 2025] (a) During a HOME-assisted rental unit's period of affordability, the participating jurisdiction may permit an owner to sell or otherwise convey a HOME-assisted rental unit to an existing tenant in accordance with the requirements of § 92.254. However, refusal by the tenant to purchase the housing does not constitute good cause for termination of tenancy or failure to renew the lease. The participating jurisdiction may not permit the use of a lease-purchase program under this section. (b) If no additional HOME funds are used to enable the tenants to become homeowners, the homeownership units are subject to a period of affordability equal to the remaining period of affordability if the units continued as rental units. The participating jurisdiction must impose resale requirements that comply with § 92.254(a) for the required period of affordability. The period of affordability and resale restrictions must be applied to the property regardless of the income of the family at purchase. If the tenant's family is no longer low-income at the time of the purchase, then the family must occupy the housing as a principal residence in accordance with § 92.254(a)(3) and must agree to the imposition of resale restrictions on the housing, in accordance with § 92.254(a)(5), for the period of affordability specified in this paragraph (b). (c) If additional HOME funds are used to directly assist the tenants to become homeowners, the period of affordability is the remaining period of affordability if the unit had remained a rental unit or the required period under § 92.254(a)(4) for the amount of direct homeownership assistance provided, whichever is longer. No additional HOME funds may be provided to an in-place tenant to become a homebuyer if the tenant's family is no longer low-income at the time of the purchase.
24:24:1.1.1.1.41.6.67.7 24 Housing and Urban Development     92 PART 92—HOME INVESTMENT PARTNERSHIPS PROGRAM F Subpart F—Project Requirements   § 92.256 [Reserved] HUD        
24:24:1.1.1.1.41.6.67.8 24 Housing and Urban Development     92 PART 92—HOME INVESTMENT PARTNERSHIPS PROGRAM F Subpart F—Project Requirements   § 92.257 Equal participation of faith-based organizations. HUD     [81 FR 19418, Apr. 4, 2016] The HUD program requirements in § 5.109 apply to the HOME program, including the requirements regarding disposition and change in use of real property by a faith-based organization.
24:24:1.1.1.1.41.6.67.9 24 Housing and Urban Development     92 PART 92—HOME INVESTMENT PARTNERSHIPS PROGRAM F Subpart F—Project Requirements   § 92.258 Elder cottage housing opportunity (ECHO) units. HUD     [61 FR 48750, Sept. 16, 1996, as amended at 90 FR 886, Jan. 6, 2025] (a) General. HOME funds may be used for the initial purchase and initial placement costs of elder cottage housing opportunity (ECHO) units that meet the requirements of this section, and that are small, free-standing, barrier-free, energy-efficient, removable, and designed to be installed adjacent to existing single family housing units. (b) Eligible owners. The owner of a HOME-assisted ECHO unit may be: (1) The owner-occupant of the single family host property on which the ECHO unit will be located; (2) A participating jurisdiction; or (3) A non-profit organization. (c) Eligible tenants. During the period of affordability, the tenant of a HOME-assisted ECHO unit must be an elderly or disabled family as defined in 24 CFR 5.403 and must also be a low-income family. (d) Applicable requirements. The requirements of § 92.252 apply to HOME-assisted ECHO units, with the following modifications: (1) Only one ECHO unit may be provided per host property. (2) The ECHO unit owner may choose whether or not to charge the tenant of the ECHO unit rent, but if a rent is charged, it must meet the requirements of § 92.252. (3) The ECHO housing must remain affordable for the period specified in § 92.252(d). If within the period of affordability the original occupant no longer occupies the unit, the ECHO unit owner must: (i) Rent the unit to another eligible occupant on site; (ii) Move the ECHO unit to another site for occupancy by an eligible occupant; or (iii) If the owner of the ECHO unit is the host property owner-occupant, the owner may repay the HOME funds in accordance with the recapture provisions imposed by the participating jurisdiction consistent with § 92.254(a)(5)(ii). The participating jurisdiction must use the recaptured HOME funds for additional HOME activities. (4) The participating jurisdiction has the responsibility to enforce the project requirements applicable to ECHO units.
24:24:1.1.1.1.41.7.67.1 24 Housing and Urban Development     92 PART 92—HOME INVESTMENT PARTNERSHIPS PROGRAM G Subpart G—Community Housing Development Organizations   § 92.300 Set-aside for community housing development organizations (CHDOs). HUD     [61 FR 48750, Sept. 16, 1996, as amended at 62 FR 28930, May 28, 1997; 78 FR 44677, July 24, 2013; 90 FR 886, Jan. 6, 2025] (a) Within 24 months after the date that HUD notifies the participating jurisdiction of HUD's execution of the HOME Investment Partnerships Agreement, the participating jurisdiction must reserve not less than 15 percent of the HOME allocation for investment only in housing to be owned, developed, or sponsored by community housing development organizations. For a State, the HOME allocation includes funds reallocated under § 92.451(c)(2)(i) and, for a unit of general local government, includes funds transferred from a State under § 92.102(b). The participating jurisdiction must certify the organization as meeting the definition of “community housing development organization” and must document that the organization has capacity to own, develop, or sponsor housing each time it commits funds to the organization. For purposes of this paragraph: (1) Funds are reserved when a participating jurisdiction enters into a written agreement with the community housing development organization (or project owner as described in paragraph (a)(4) of this section) committing the funds to a specific local project in accordance with paragraph (2) of the definition of “commitment” in § 92.2. (2) Rental housing is “owned” by the community housing development organization if the community housing development organization is the owner in fee simple absolute of rental housing (or has a long term ground lease running for the full period of affordability in § 92.252) leased to low-income families in accordance with § 92.252. If the housing is to be rehabilitated or constructed, the community housing development organization hires and oversees the developer that rehabilitates or constructs the housing. The community housing development organization must oversee or hire and contract with an experienced project manager to oversee all aspects of the development, including obtaining zoning, securing non-HOME financing, selecting a developer or general contractor, overseeing the progress of the work, and determining the reasonableness of costs. T…
24:24:1.1.1.1.41.7.67.2 24 Housing and Urban Development     92 PART 92—HOME INVESTMENT PARTNERSHIPS PROGRAM G Subpart G—Community Housing Development Organizations   § 92.301 Project-specific assistance to community housing development organizations. HUD       (a) Project-specific technical assistance and site control loans —(1) General. Within the percentage specified in § 92.300(c), HOME funds may be used by a participating jurisdiction to provide technical assistance and site control loans to community housing development organizations in the early stages of site development for an eligible project. These loans may not exceed amounts that the participating jurisdiction determines to be customary and reasonable project preparation costs allowable under paragraph (a)(2) of this section. All costs must be related to a specific eligible project or projects. (2) Allowable costs. A loan may be provided to cover project costs necessary to determine project feasibility (including costs of an initial feasibility study), consulting fees, costs of preliminary financial applications, legal fees, architectural fees, engineering fees, engagement of a development team, option to acquire property, site control and title clearance. General operational expenses of the community housing development organization are not allowable costs. (3) Repayment. The community housing development organization must repay the loan to the participating jurisdiction from construction loan proceeds or other project income. The participating jurisdiction may waive repayment of the loan, in part or in whole, if there are impediments to project development that the participating jurisdiction determines are reasonably beyond the control of the borrower. (b) Project-specific seed money loans —(1) General. Within the percentage specified in § 92.300(c), HOME funds may be used to provide loans to community housing development organizations to cover preconstruction project costs that the participating jurisdiction determines to be customary and reasonable, including, but not limited to the costs of obtaining firm construction loan commitments, architectural plans and specifications, zoning approvals, engineering studies, and legal fees. (2) Eligible sponsors. A loan may be provided only to a co…
24:24:1.1.1.1.41.7.67.3 24 Housing and Urban Development     92 PART 92—HOME INVESTMENT PARTNERSHIPS PROGRAM G Subpart G—Community Housing Development Organizations   § 92.302 Housing education and organizational support. HUD     [90 FR 887, Jan. 6, 2025] HUD is authorized to provide education and organizational support assistance, in conjunction with HOME funds made available to community housing development organizations in accordance with section 233 of the Act. (a) HUD will issue a publication in the Federal Register announcing the availability of funding under this section, as appropriate. The publication need not include funding for each of the eligible activities but may target funding from among the eligible activities. (b) Notwithstanding the definition of “community land trust” in § 92.2, HUD may provide housing education and organizational support assistance under this section to a community land trust only if the following requirements are met: (1) The community land trust meets the definition of a “community housing development organization” at § 92.2, except for the requirements in paragraphs (9) and (10) of the definition. (2) The community land trust is established to complete the activities in paragraph (b)(3) of this section. (3) The community land trust: (i) Acquires land to hold in perpetuity and primarily for conveyance under long-term ground leases; (ii) Transfers ownership of any structural improvements located on such leased land to the lessees; and (iii) Retains a preemptive option to purchase any such structural improvement at a price determined by formula that is designed to ensure that the improvement remains affordable to low- and moderate-income families in perpetuity; (4) The community land trust's corporate membership is open to residents of a particular geographic area, as specified in the organization's bylaws; and (5) The board of directors: (i) Includes a majority of members who are elected by the corporate membership; and (ii) Is composed of equal numbers of lessees pursuant to paragraph (b)(2)(ii), members who are not lessees, and any other category of persons described in the organization's bylaws.
24:24:1.1.1.1.41.7.67.4 24 Housing and Urban Development     92 PART 92—HOME INVESTMENT PARTNERSHIPS PROGRAM G Subpart G—Community Housing Development Organizations   § 92.303 Tenant participation plan. HUD       A community housing development organization that receives assistance under this part must adhere to a fair lease and grievance procedure approved by the participating jurisdiction and provide a plan for and follow a program of tenant participation in management decisions.
24:24:1.1.1.1.41.8.67.1 24 Housing and Urban Development     92 PART 92—HOME INVESTMENT PARTNERSHIPS PROGRAM H Subpart H—Other Federal Requirements   § 92.350 Other Federal requirements and nondiscrimination. HUD     [62 FR 28930, May 28, 1997, as amended at 81 FR 90657, Dec. 14, 2016] (a) The Federal requirements set forth in 24 CFR part 5, subpart A, are applicable to participants in the HOME program. The requirements of this subpart include: nondiscrimination and equal opportunity; disclosure requirements; debarred, suspended or ineligible contractors; drug-free work; and housing counseling. (b) The nondiscrimination requirements at section 282 of the Act are applicable. These requirements are waived in connection with the use of HOME funds on lands set aside under the Hawaiian Homes Commission Act, 1920 (42 Stat. 108).
24:24:1.1.1.1.41.8.67.10 24 Housing and Urban Development     92 PART 92—HOME INVESTMENT PARTNERSHIPS PROGRAM H Subpart H—Other Federal Requirements   § 92.359 VAWA requirements. HUD     [81 FR 80803, Nov. 16, 2016, as amended at 90 FR 888, Jan. 6, 2025] (a) General. (1) The Violence Against Women Act (VAWA) requirements set forth in 24 CFR part 5, subpart L, apply to all HOME tenant-based rental assistance and rental housing assisted with HOME funds, as supplemented by this section. (2) For the HOME program, the “covered housing provider,” as this term is used in HUD's regulations in 24 CFR part 5, subpart L, refers to: (i) The housing owner for the purposes of 24 CFR 5.2005(d)(1), (d)(3), and (d)(4) and § 5.2009(a); and (ii) The participating jurisdiction and the owner for purposes of 24 CFR 5.2005(d)(2), 5.2005(e), and 5.2007, except as otherwise provided in paragraph (g) of this section. (b) Effective date. The core statutory protections of VAWA that prohibit denial or termination of assistance or eviction solely because an applicant or tenant is a victim of domestic violence, dating violence, sexual assault, or stalking became applicable upon enactment of VAWA 2013 on March 7, 2013. Compliance with the VAWA regulatory requirements under this section and 24 CFR part 5, subpart L, are required for any tenant-based rental assistance or rental housing project for which the date of the HOME funding commitment is on or after December 16, 2016 . (c) Notification requirements. The participating jurisdiction must provide a notice and certification form that meet the requirements of 24 CFR 5.2005(a) to the owner of HOME-assisted rental housing. (1) For HOME-assisted units. The owner of HOME-assisted rental housing must provide the notice and certification form described in 24 CFR 5.2005(a) to the applicant for a HOME-assisted unit at the time the applicant is admitted to a HOME-assisted unit, or denied admission to a HOME-assisted unit based on the owner's tenant selection policies and criteria. The owner of HOME-assisted rental housing must also provide the notice and certification form described in 24 CFR 5.2005 with any notification of eviction from a HOME-assisted unit. (2) For HOME tenant-based rental assistance. The participating jurisdiction m…
24:24:1.1.1.1.41.8.67.2 24 Housing and Urban Development     92 PART 92—HOME INVESTMENT PARTNERSHIPS PROGRAM H Subpart H—Other Federal Requirements   § 92.351 Affirmative marketing; minority outreach program. HUD     [61 FR 48750, Sept. 16, 1996, as amended at 78 FR 44678, July 24, 2013; 80 FR 75935, Dec. 7, 2015; 90 FR 887, Jan. 6, 2025] (a) Affirmative marketing. (1) Each participating jurisdiction must adopt and follow affirmative marketing procedures and requirements for rental and homebuyer projects containing five or more HOME-assisted housing units. Affirmative marketing requirements and procedures also apply to all HOME- funded programs, including, but not limited to, tenant-based rental assistance and homeownership assistance programs. Affirmative marketing steps consist of actions to provide information and otherwise attract eligible persons in the housing market area to the available housing without regard to race, color, national origin, sex, religion, familial status, or disability. If the participating jurisdiction's written agreement with the project owner permits the rental housing project to limit tenant eligibility or to have a tenant preference in accordance with § 92.253(e)(3), the participating jurisdiction must have affirmative marketing procedures and requirements that apply in the context of the limited/preferred tenant eligibility for the project. (2) The affirmative marketing requirements and procedures adopted must include: (i) Methods for informing the public, owners, and potential tenants about Federal fair housing laws and the participating jurisdiction's affirmative marketing policy (e.g., the use of the Equal Housing Opportunity logotype or slogan in press releases and solicitations for owners, and written communication to fair housing and other groups); (ii) Requirements and practices each subrecipient and owner must adhere to in order to carry out the participating jurisdiction's affirmative marketing procedures and requirements (e.g., use of commercial media, use of community contacts, use of the Equal Housing Opportunity logotype or slogan, and display of fair housing poster); (iii) Procedures to be used by subrecipients and owners to inform and solicit applications from persons in the housing market area who are not likely to apply for the housing program or the housing without special outreach (e.g., thr…
24:24:1.1.1.1.41.8.67.3 24 Housing and Urban Development     92 PART 92—HOME INVESTMENT PARTNERSHIPS PROGRAM H Subpart H—Other Federal Requirements   § 92.352 Environmental review. HUD     [61 FR 48750, Sept. 16, 1996, as amended at 78 FR 44678, July 24, 2013; 90 FR 887, Jan. 6, 2025] (a) General. The environmental effects of each activity carried out with HOME funds must be assessed in accordance with the provisions of the National Environmental Policy Act of 1969 (NEPA) (42 U.S.C. 4321) and the related authorities listed in HUD's implementing regulations at 24 CFR parts 50 and 58. The applicability of the provisions of 24 CFR part 50 or part 58 is based on the HOME project (new construction, rehabilitation, acquisition) or activity (tenant-based rental assistance) as a whole, not on the type of cost paid with HOME funds. (b) Responsibility for review. (1) The jurisdiction (e.g., the participating jurisdiction or State recipient) or insular area must assume responsibility for environmental review, decision making, and action for each activity that it carries out with HOME funds, in accordance with the requirements imposed on a recipient under 24 CFR part 58. No funds may be committed to a HOME activity or project before the completion of the environmental review and approval of the request for release of funds and related certification, except as authorized by 24 CFR part 58. (2) A State participating jurisdiction must also assume responsibility for approval of requests for release of HOME funds submitted by State recipients. (3) HUD will perform the environmental review, in accordance with 24 CFR part 50, for a competitively awarded application for HOME funds submitted to HUD by an entity that is not a jurisdiction.
24:24:1.1.1.1.41.8.67.4 24 Housing and Urban Development     92 PART 92—HOME INVESTMENT PARTNERSHIPS PROGRAM H Subpart H—Other Federal Requirements   § 92.353 Displacement, relocation, and acquisition. HUD     [61 FR 48750, Sept. 16, 1996, as amended at 61 FR 51760, Oct. 3, 1996; 62 FR 28930, May 28, 1997; 67 FR 61756, Oct. 1, 2002; 78 FR 44678, July 24, 2013; 90 FR 887, Jan. 6, 2025] (a) Minimizing displacement. Consistent with the other goals and objectives of this part, the participating jurisdiction must ensure that it has taken all reasonable steps to minimize the displacement of persons (families, individuals, businesses, nonprofit organizations, and farms) as a result of a project assisted with HOME funds. To the extent feasible, residential tenants must be provided a reasonable opportunity to lease and occupy a suitable, decent, safe, sanitary, and affordable dwelling unit in the building/complex upon completion of the project. (b) Temporary relocation. The following policies cover residential tenants who will not be required to move permanently but who must relocate temporarily for the project. Such tenants must be provided: (1) Reimbursement for all reasonable out-of-pocket expenses incurred in connection with the temporary relocation, including the cost of moving to and from the temporarily occupied housing and any increase in monthly rent/utility costs. (2) Appropriate advisory services, including reasonable advance written notice of: (i) The date and approximate duration of the temporary relocation; (ii) The location of the suitable, decent, safe, and sanitary dwelling to be made available for the temporary period; (iii) The terms and conditions under which the tenant may lease and occupy a suitable, decent, safe, and sanitary dwelling in the building/complex upon completion of the project; and (iv) The provisions of paragraph (b)(1) of this section. (c) Relocation assistance for displaced persons —(1) General. A displaced person (defined in paragraph (c)(2) of this section) must be provided relocation assistance at the levels described in, and in accordance with the requirements of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (URA) (42 U.S.C. 4201-4655) and 49 CFR part 24. A “displaced person” must be advised of his or her rights under the Fair Housing Act and, if the comparable replacement dwelling used to establish the amou…
24:24:1.1.1.1.41.8.67.5 24 Housing and Urban Development     92 PART 92—HOME INVESTMENT PARTNERSHIPS PROGRAM H Subpart H—Other Federal Requirements   § 92.354 Labor. HUD     [61 FR 48750, Sept. 16, 1996, as amended at 78 FR 44678, July 24, 2013; 90 FR 888, Jan. 6, 2025] (a) General. (1) Every contract for the construction (rehabilitation or new construction) of housing that includes 12 or more units assisted with HOME funds must contain a provision requiring the payment of not less than the wages prevailing in the locality, as predetermined by the Secretary of Labor pursuant to the Davis-Bacon Act (40 U.S.C. 3141), to all laborers and mechanics employed in the development of any part of the housing. Such contracts must also be subject to the overtime provisions, as applicable, of the Contract Work Hours and Safety Standards Act (40 U.S.C. 3701). (2) The contract for construction must contain these wage provisions if HOME funds are used for any project costs in § 92.206, including construction or nonconstruction costs, of housing with 12 or more HOME-assisted units. When HOME funds are only used to assist homebuyers to acquire single family housing, and not for any other project costs, the wage provisions apply to the construction of the housing if there is a written agreement with the owner or developer of the housing that HOME funds will be used to assist homebuyers to buy the housing and the construction contract covers 12 or more housing units to be purchased with HOME assistance. The wage provisions apply to any construction contract that includes a total of 12 or more HOME-assisted units, whether one or more than one project is covered by the construction contract. Once they are determined to be applicable, the wage provisions must be contained in the construction contract so as to cover all laborers and mechanics employed in the development of the entire project, including portions other than the assisted units. Arranging multiple construction contracts within a single project for the purpose of avoiding the wage provisions is not permitted. (3) Participating jurisdictions, contractors, subcontractors, and other participants must comply with regulations issued under these acts and with other Federal laws and regulations pertaining to labor standards, as applicable. Par…
24:24:1.1.1.1.41.8.67.6 24 Housing and Urban Development     92 PART 92—HOME INVESTMENT PARTNERSHIPS PROGRAM H Subpart H—Other Federal Requirements   § 92.355 Lead-based paint. HUD     [64 FR 50224, Sept. 15, 1999] Housing assisted with HOME funds is subject to the Lead-Based Paint Poisoning Prevention Act (42 U.S.C. 4821-4846), the Residential Lead-Based Paint Hazard Reduction Act of 1992 (42 U.S.C. 4851-4856), and implementing regulations at part 35, subparts A, B, J, K, M and R of this title.
24:24:1.1.1.1.41.8.67.7 24 Housing and Urban Development     92 PART 92—HOME INVESTMENT PARTNERSHIPS PROGRAM H Subpart H—Other Federal Requirements   § 92.356 Conflict of interest. HUD     [61 FR 48750, Sept. 16, 1996, as amended at 62 FR 28930, May 28, 1997; 78 FR 44679, July 24, 2013; 80 FR 75935, Dec. 7, 2015; 90 FR 888, Jan. 6, 2025] (a) Applicability. In the procurement of property and services by participating jurisdictions, State recipients, and subrecipients, the conflict of interest provisions in 2 CFR 200.317 and 2 CFR 200.318, apply. In all cases not governed by 2 CFR 200.317 and 2 CFR 200.318, the provisions of this section apply. (b) Conflicts prohibited. No persons described in paragraph (c) of this section who exercise or have exercised any functions or responsibilities with respect to activities assisted with HOME funds or who are in a position to participate in a decision-making process or gain inside information with regard to these activities may obtain a financial interest or financial benefit from a HOME-assisted activity, or have a financial interest in any contract, subcontract, or agreement with respect to the HOME-assisted activity, or the proceeds from such activity, either for themselves or those with whom they have business or immediate family ties, during their tenure or for one year thereafter. Immediate family ties include (whether by blood, marriage or adoption) the spouse, parent (including a stepparent), child (including a stepchild), brother, sister (including a stepbrother or stepsister), grandparent, grandchild, and in-laws of a covered person. (c) Persons covered. The conflict of interest provisions of paragraph (b) of this section apply to any person who is an employee, agent, consultant, officer, or elected official or appointed official of the participating jurisdiction, State recipient, or subrecipient which are receiving HOME funds. (d) Exceptions: Threshold requirements. Upon the written request of the participating jurisdiction, HUD may grant an exception to the provisions of paragraph (b) of this section on a case-by-case basis when it determines that the exception will serve to further the purposes of the HOME Investment Partnerships Program and the effective and efficient administration of the participating jurisdiction's program or project. An exception may be considered only after the p…
24:24:1.1.1.1.41.8.67.8 24 Housing and Urban Development     92 PART 92—HOME INVESTMENT PARTNERSHIPS PROGRAM H Subpart H—Other Federal Requirements   § 92.357 Executive Order 12372. HUD       (a) General. Executive Order 12372, as amended by Executive Order 12416 (3 CFR, 1982 Comp., p. 197 and 3 CFR, 1983 Comp., p. 186) (Intergovernmental Review of Federal Programs) and HUD's implementing regulations at 24 CFR part 52, allow each State to establish its own process for review and comment on proposed Federal financial assistance programs. (b) Applicability. Executive Order 12372 applies to applications submitted with respect to HOME funds being competitively reallocated under subpart J of this part to units of general local government.
24:24:1.1.1.1.41.8.67.9 24 Housing and Urban Development     92 PART 92—HOME INVESTMENT PARTNERSHIPS PROGRAM H Subpart H—Other Federal Requirements   § 92.358 Consultant activities. HUD     [62 FR 28930, May 28, 1997] No person providing consultant services in an employer-employee type relationship shall receive more than a reasonable rate of compensation for personal services paid with HOME funds. In no event, however, shall such compensation exceed the limits in effect under the provisions of any applicable statute (e.g., annual HUD appropriations acts which have set the limit at the equivalent of the daily rate paid for Level IV of the Executive Schedule, see the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1997, Pub. L. 104-204 (September 26, 1996)). Such services shall be evidenced by written agreements between the parties which detail the responsibilities, standards, and compensation. Consultant services provided under an independent contractor relationship are not subject to the compensation limitation of Level IV of the Executive Schedule.
24:24:1.1.1.1.41.9.67.1 24 Housing and Urban Development     92 PART 92—HOME INVESTMENT PARTNERSHIPS PROGRAM I Subpart I—Technical Assistance   § 92.400 Coordinated Federal support for housing strategies. HUD       (a) General. HUD will provide assistance in accordance with Subtitle C of the Act. (b) Notice of funding. HUD will publish a notice in the Federal Register announcing the availability of funding under this section as appropriate.

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