Home Investment Partnerships Program

Definition

The Home Investment Partnerships Program (HOME) is a federal initiative established in 1990 to provide funding to states and localities for the development of affordable housing for low-income individuals and families. This program aims to strengthen the capacity of state and local governments to create and sustain affordable housing through grants, which can be used for various activities, including building, buying, and rehabilitating rental or homeownership housing.

5 Must Know Facts For Your Next Test

1. HOME is the largest federal block grant program designed specifically for affordable housing development in the United States.
2. Funds from the HOME program can be used for various activities, including rehabilitation of existing housing, new construction, tenant-based rental assistance, and homebuyer assistance.
3. The program operates on a matching grant basis, requiring states and localities to contribute funds equal to at least 25% of the federal funds received.
4. Since its inception, the HOME program has facilitated the creation or rehabilitation of hundreds of thousands of affordable housing units across the country.
5. The program encourages partnerships between public agencies, nonprofit organizations, and private developers to maximize the impact of funding.

Review Questions

• How does the HOME program empower local governments in addressing housing needs?
  • The HOME program empowers local governments by providing them with flexible funding that they can use to address their specific housing needs. This initiative allows states and localities to tailor their approach to affordable housing development based on local priorities. By requiring a matching contribution from local entities, the program also encourages collaboration between public agencies and private developers, leading to innovative solutions in addressing housing challenges.
• Evaluate the impact of the HOME program on affordable housing availability in urban areas.
  • The HOME program significantly impacts the availability of affordable housing in urban areas by providing essential funding that supports the development and rehabilitation of housing units. This support has led to increased access for low-income individuals and families who might otherwise struggle to find suitable living arrangements. However, challenges such as rising construction costs and gentrification can limit the effectiveness of these funds if not strategically managed.
• Assess how the interaction between the HOME program and other federal initiatives influences housing policy outcomes at both state and local levels.
  • The interaction between the HOME program and other federal initiatives, such as CDBG and LIHTC, plays a crucial role in shaping housing policy outcomes. By leveraging funds from multiple sources, state and local governments can implement comprehensive strategies that address various aspects of affordable housing development. This collaborative approach enhances resource allocation efficiency, addresses diverse community needs, and ultimately results in more sustainable housing solutions that are better aligned with local conditions and challenges.

Related terms

Community Development Block Grant (CDBG): A federal program that provides annual grants to local and state governments for community development activities aimed at benefiting low- and moderate-income people.

Low-Income Housing Tax Credit (LIHTC):

A program that provides tax incentives for private investors to develop affordable rental housing for low-income households.

Affordable Housing: Housing that is reasonably priced for individuals and families with low to moderate incomes, typically defined as costing no more than 30% of their income.