24 CFR 92.205 - Eligible activities: General.

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§ 92.205 Eligible activities: General.
(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 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.
(2) Acquisition of vacant land or demolition must be undertaken only with respect to a particular housing project intended to provide affordable housing.
(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 manufactured housing owner has a lease for a period at least equal to the applicable period of affordability.
(b) Forms of assistance.
(1) A participating jurisdiction may invest HOME funds 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 that HUD determines to be consistent with the purposes of this part. Each participating jurisdiction has the right to establish the terms of assistance, subject to the requirements of this part.
(2) A participating jurisdiction may invest HOME funds to guarantee loans made by lenders and, if required, the participating jurisdiction may establish a loan guarantee account with HOME funds. The HOME funds may be used to guarantee the timely payment of principal and interest or payment of the outstanding principal and interest upon foreclosure of the loan. 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 percent of the total outstanding principal amount guaranteed; 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 the guaranteed loans are not.
(c) Minimum amount of assistance. The minimum amount of HOME funds that must be invested in a project involving rental housing or homeownership is $1,000 times the number of HOME-assisted units in the project.
(d) Multi-unit projects. HOME funds may be used to assist one or more housing units in a multi-unit project. Only the actual HOME eligible development costs of the assisted units may be charged to the HOME program. If the assisted and non-assisted units are not comparable, the actual costs may be determined based on a method of cost allocation. If the assisted and non-assisted units are comparable in terms of size, features and number of bedrooms, the actual cost of the HOME-assisted units can be determined by pro-rating the total HOME eligible development costs of the project so that the proportion of the total development costs charged to the HOME program does not exceed the proportion of the HOME-assisted units in the project.
(e) Terminated projects. A HOME assisted project that is terminated before completion, either voluntarily or otherwise, constitutes an ineligible activity and any HOME funds invested in the project must be repaid to the participating jurisdiction's HOME Investment Trust Fund in accordance with § 92.503(b) (except for project-specific assistance to community housing development organizations as provided in § 92.301(a)(3) and § 92.301(b)(3)).
[61 FR 48750, Sept. 16, 1996, as amended at 62 FR 28928, May 28, 1997]

Title 24 published on 2014-04-01

no entries appear in the Federal Register after this date.

This is a list of United States Code sections, Statutes at Large, Public Laws, and Presidential Documents, which provide rulemaking authority for this CFR Part.

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United States Code
U.S. Code: Title 42 - THE PUBLIC HEALTH AND WELFARE

§ 3535 - Administrative provisions

§ 12701 - National housing goal

§ 12702 - Objective of national housing policy

§ 12703 - Purposes of Cranston-Gonzalez National Affordable Housing Act

§ 12704 - Definitions

§ 12705 - State and local housing strategies

§ 12705a - Purposes of Removal of Regulatory Barriers to Affordable Housing Act

§ 12705b - Definition of regulatory barriers to affordable housing

§ 12705c - Grants for regulatory barrier removal strategies and implementation

§ 12705d - Regulatory barriers clearinghouse

§ 12706 - Certification

§ 12707 - Citizen participation

§ 12708 - Compliance

§ 12709 - Energy efficiency standards

§ 12710 - Capacity study

§ 12711 - Protection of State and local authority

§ 12712 - 5-year energy efficiency plan

§ 12713 - Eligibility under first-time homebuyer programs

§ 12714 - Repealed.

§ 12721 - Findings

§ 12722 - Purposes

§ 12723 - Coordinated Federal support for housing strategies

§ 12724 - Authorization

§ 12725 - Notice

§ 12741 - Authority

§ 12742 - Eligible uses of investment

§ 12743 - Development of model programs

§ 12744 - Income targeting

§ 12745 - Qualification as affordable housing

§ 12746 - Participation by States and local governments

§ 12747 - Allocation of resources

§ 12748 - HOME Investment Trust Funds

§ 12749 - Repayment of investment

§ 12750 - Matching requirements

§ 12751 - Private-public partnership

§ 12752 - Distribution of assistance

§ 12753 - Penalties for misuse of funds

§ 12754 - Limitation on jurisdictions under court order

§ 12755 - Tenant and participant protections

§ 12756 - Monitoring of compliance

§ 12771 - Set-aside for community housing development organizations

§ 12772 - Project-specific assistance to community housing development organizations

§ 12773 - Housing education and organizational support

§ 12774 - Other requirements

§ 12781 - Authority

§ 12782 - Priorities for capacity development

§ 12783 - Conditions of contracts

§ 12784 - Research in housing affordability

§ 12785 - REACH: asset recycling information dissemination

§ 12801 - General authority

§ 12802 - Rental housing production

§ 12803 - Rental rehabilitation

§ 12804 - Rehabilitation loans

§ 12805 - Sweat equity model program

§ 12806 - Home repair services grants for older and disabled homeowners

§ 12807 - Low-income housing conservation and efficiency grant programs

§ 12808 - Second mortgage assistance for first-time homebuyers

§ 12809 - Rehabilitation of State and local government in rem properties

§ 12810 - Cost-saving building technologies and construction techniques

§ 12821 - Downpayment assistance initiative

§ 12831 - Equal opportunity

§ 12832 - Nondiscrimination

§ 12833 - Audits by Comptroller General

§ 12834 - Uniform recordkeeping and reports to Congress

§ 12835 - Citizen participation

§ 12836 - Labor

§ 12837 - Interstate agreements

§ 12838 - Environmental review

§ 12839 - Termination of existing housing programs