Created by the National Affordable Housing Act of 1990, the HOME Investment Partnerships (HOME) Program provides funding for various types of affordable housing production and rehabilitation. HOME is the largest federal block grant program designed exclusively to create affordable housing for low-income households. HOME funds may be used as low-interest rate loans to provide housing assistance. The program’s flexibility empowers people and communities to design and implement programs tailored to their own needs and priorities.
The majority of HOME funds are distributed through KHC’s competitive funding process to a variety of housing partners across the state – cities, counties, Community Housing Development Organizations (CHDOs), nonprofits, and for-profit private developers.
HOME funds may be used for acquisition and rehabilitation or new construction of affordable rental housing. For rental new construction, this includes land acquisition, site preparation, and construction. Benefiting households may have incomes up to 60 percent of the area median.
The required affordability period for rental new construction is 20 years. The affordability period for rehabilitation projects is dependent upon the amount of HOME funds invested per unit, ranging from 5 to 15 years. Affordability periods are secured by a recorded deed restriction.
Kentucky is among a handful of states in the nation to fully embrace the variety of activities allowable under the HOME Program, enabling KHC and the agencies it funds to do any of the following:
Homeowner Rehabilitation: HOME funds may be used to bring a family’s primary residence up to current building code or, if the house is too dilapidated, to demolish the existing structure and build a new home. To be eligible, households may have incomes up to 80 percent of the area median. Up to $60,000 of HOME funds per unit may be used for needed repairs.
Home Buyer Assistance: This may include acquisition of an existing home, new construction, or lease-purchase arrangements. Up to $25,000 of HOME funds per house may be used for construction, principal reduction, down payment assistance, closing costs, and for the required 3 percent down payment if there is an FHA-insured first mortgage. Eligibile households may have incomes up to 80 percent of the area median.
Tenant-Based Rental Assistance: HOME funds may be used for rent and utility assistance (similar to the Section 8 Housing Choice Voucher Program), as well as security and utility deposits. Eligible households must be in one of KHC’s special needs populations and may have incomes up to 60 percent of the area median.
For information on the HOME Investment Partnership Program, please visit HUD Exchange.
For more information, contact:
Kentucky Housing Corporation | 1231 Louisville Rd., Frankfort,
KY 40601 502-564-7630; 800-633-8896 (KY only); TTY 711