HOME Investment Partnerships Program (HOME)

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The HOME Investment Partnerships Program (HOME) is a federally-funded program created by the National Affordable Housing Act of 1990. This program is intended to be a locally designed and administered program which: 1) expands the supply of decent, safe, affordable, and sanitary housing, with primary attention to low income rental housing; 2) strengthens the abilities of state and local governments to design and implement affordable housing strategies; and 3) provides both federal financing and technical assistance.

According to the HOME Program regulations, the State of Hawaiʻi (the “State”) is the Participating Jurisdiction (PJ); the Hawaiʻi Housing Finance and Development Corporation (HHFDC) is the agency designated to administer the HOME Program for the State. The HOME Program requires that all HOME funds be utilized to assist households earning 50%, 60% or 80% or below of the area median income.

Each year, the U.S. Department of Housing and Urban Development (HUD) determines by formula the amount of HOME funds that States and units of local governments are eligible to receive. Generally, the State receives approximately $3,000,000 in HOME funds annually. The State distributes its HOME funds in accordance with the State Consolidated Plan which provides information on the State’s housing needs, primarily in the counties of Hawaiʻi, Kauai, and Maui, and a strategic plan to address those needs. The State has designated the counties of Hawaiʻi, Kauai and Maui as HOME State Recipients to administer the State’s HOME funds to address their respective housing needs.

The program was designed to reinforce several important values and principles of community development:

Flexibility empowers people and communities to design and implement strategies tailored to their own needs and priorities.
Emphasis on consolidated planning expands and strengthens partnerships among all levels of government and the private sector in the development of affordable housing.
Technical assistance activities and set-aside for qualified community-based nonprofit housing groups builds the capacity of these partners.
Requirement that participating jurisdictions match 25 cents of every dollar in program funds mobilizes community resources in support of affordable housing.

2024 Application Process and Availability of Funds

In 2024, the County will receive an allocation of $2,850,000 in HOME funds.

2024 HOME proposal applications closed on November 15, 2023.

See Sample 2024 HOME Application here

Tentative PY 2024 Action Plan Schedule which is subject to change.

2024 Public Notice

Find the final project selections in the 2024 Public Notice #3

Eligibility of the Applicants

Eligible Applicants include:

Public Agencies
Private Non-profit agencies
Government agencies
Developers
Owners
Community Housing Development Organizations (CHDO)

Eligible Activities: General

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 non-luxury 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.

*HOME-assisted rental housing must comply with certain rent limitations. HOME rent limits are published each year by HUD. The program also establishes maximum per unit subsidy limits and homeownership value limits.

**Some special conditions apply to the use of HOME funds. PJs must match every dollar of HOME funds used (except for administrative costs and CHDO predevelopment loans for projects that do not move forward) with 25 cents from nonfederal sources, which may include donated materials or labor, the value of donated property, proceeds from bond financing, and other resources. The match requirement may be reduced if the PJ is distressed or has suffered a Presidentially declared disaster. In addition, PJs must reserve at least 15 percent of their allocations to fund housing to be owned, developed, or sponsored by experienced, community-driven nonprofit groups designated as Community Housing Development Organizations (CHDOs). PJs must ensure that HOME-funded housing units remain affordable in the long term (20 years for new construction of rental housing; 5-15 years for construction of homeownership housing and housing rehabilitation, depending on the amount of HOME subsidy). PJs have two years to commit funds (including reserving funds for CHDOs) and five years to spend funds.

Forms of Assistance

HOME funds may be used as equity investments, interest-bearing loans or advances, non-interest bearing loans or advances, interest subsidies consistent with the purposes of this part, deferred payment loans, grants, or other forms of assistance as approved by HUD/HHFDC. HOME funds may be used to guarantee loans made by lenders. The amount of the loan guarantee account must be based on a reasonable estimate of the default rate on the guaranteed loans, but under no circumstances may the amount on deposit exceed 20% of the total outstanding principal amount guaranteed, 2021 HOME Proposal 7 c/5-8-20 except that the account may include a reasonable minimum balance. While loan funds guaranteed with HOME funds are subject to all HOME requirements, funds which are used to repay guaranteed loans are not.

Eligible Activities/Costs (92.205)

The applicant should consult the federal regulations 24 CFR 92.205-215 for guidance on eligible and prohibited activities.

The major categories for the eligible costs are:

Development hard costs defined as the actual cost of constructing or rehabilitating housing;
The cost to refinance existing debt secured by housing that is being rehabilitated with HOME funds;
Cost of acquiring improved or unimproved real property, including acquisition by homebuyer;
Related soft costs defined as other reasonable and necessary costs incurred by the owner and associated with the financing or development (or both) of new construction, rehabilitation, or acquisition of housing assisted with HOME funds;
CHDO project specific assistance under Section 92.301
Relocation costs defined as costs of relocation payments and other relocation assistance to persons displaced by the project;
Costs related to payment of loans. If HOME funds are not used to directly pay a cost specified in this section, but are used to pay off a construction loan, bridge financing, or guaranteed loan, the payment of principal and interest for such loan is an eligible cost if the loan was used for eligible costs specified in 92.206 and the HOME assistance is part of the original financing for the project and the project meets the requirement.
Tenant-based rental assistance, such as rental assistance payments and security deposit payments made to provide tenant-based rental assistance for a family.

Prohibited Activities (92.214)

HOME funds may not be used to:

Provide project reserve accounts, except as provided in Section 92.206(d)(5), or operating subsidies;
Provide tenant-based rental assistance for the special purposes of the existing Section 8 Program, in accordance with Section 212(d) of the Act;
Provide non-federal matching contributions required under any other federal program;
Provide assistance authorized under section 9 of the 1937 Act (annual contributions for operation of public housing);
Carry out activities authorized under 24 CFR Part 968 (Public Housing Modernization);
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;
Provide assistance (other than tenant-based rental assistance or assistance to homebuyers to acquire housing previously assisted with HOME funds) to a project previously assisted with HOME funds during the period of affordability established by the County. However, additional HOME funds may be committed to a project 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
Pay for the acquisition of property owned by the State of Hawaiʻi/County of Hawaiʻi, except for property acquired by the State/County with HOME funds, or property acquired in anticipation of carrying out a HOME project;
Pay delinquent taxes, fees or charges on properties to be assisted with HOME funds and;
Pay for any cost that is not eligible under 92.206-209.

This is not intended to be an inclusive list. Refer to the Federal Register 24 CFR 92.205-215 for guidance on eligible and prohibited activities.

Compliance with Applicable State and Federal Regulations

Recipients and sub-recipients selected to receive HOME funds for eligible projects will be required, if applicable, to certify, provide documentation and assure that it will comply with the following regulations, policies, guidelines, and requirements with respect to the acceptance and use of federal funds.

Home Program Resources

Consolidated Plan and Annual Action Plan

Consolidated Plan

The County’s Consolidated Plan (Con Plan) is a five-year strategic plan that addresses the County’s housing and community development needs and Federal funding priorities. The Con Plan ensures that jurisdictions receiving federal assistance adequately utilizes and develops a plan for it housing and community development related needs of very low-, low-, and moderate-income families in a way that improves the availability and affordability of decent, safe and sanitary housing in a suitable living environment as well as expands economic opportunities.

In addition to serving as a strategic plan for the County’s priorities and objectives for its HUD programs, the Con Plan is also used as a decision-making tool for the County and to measure the County’s annual accomplishments of its Con Plan’s objectives by HUD. As such, projects seeking CDBG funding must be consistent with the Con Plan and address a priority housing or community development need as well as fulfill a housing or community development goal as outlined in the Con Plan.

The Con Plan was drafted with extensive community input through public hearings and consultation with the Hawaiʻi County Housing Agency, community organizations and government agencies, and by public survey and studies.

Annual Action Plan

The County is required to submit an Annual Action Plan (AAP) for HUD’s approval that serves as the County’s annual planning document. The AAP addresses the specific activities/projects the County will undertake during the program year to meet the Con Plan objectives with the anticipated annual CDBG fund allocation.

The activities/projects that the County proposes to finance in the AAP are selected in accordance with the County’s Project Evaluation and Rating System. This process involves the rating and ranking of each activity/project by an evaluation committee coordinated by the Office of Housing and Community Development. The evaluation committee submits its recommendation to the Mayor for approval and upon its approval, the AAP is drafted and made available for public comment. A Resolution to authorize the Mayor to enter into an agreement with HUD, along with the AAP with the approved activities/projects. is presented to the Hawaiʻi County Council for adoption. Upon adoption by the Council, the AAP is submitted to HUD for approval by the May 15th deadline.

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