HOME Investment Partnerships Program

HOME Investment Partnerships Program
Shorttitle	HOME Investment Partnerships Program
Enacted by	the 101st United States Congress
Effective date	November 28, 1990
Citations	Public law 101-625, Title II of the Cranston-Gonzalez National Affordable Housing Act

HOME Investment Partnerships Program. It is a federal block grant program administered by the Office of Community Planning and Development within the United States Department of Housing and Urban Development. Established by the Cranston-Gonzalez National Affordable Housing Act of 1990, the program provides formula grants to states and local governments to fund a wide range of housing activities. Its primary goal is to expand the supply of decent, safe, sanitary, and affordable housing for low-income households through partnerships with states, cities, and nonprofit organizations.

Overview

The program was created as a cornerstone of the National Affordable Housing Act signed into law by President George H. W. Bush. It represents a significant shift towards federal-local partnerships in addressing housing needs, emphasizing flexibility for participating jurisdictions to design solutions tailored to local conditions. The program operates alongside other key federal housing initiatives such as the Community Development Block Grant and the Low-Income Housing Tax Credit. Its legislative authority is codified under Title 24, Code of Federal Regulations, Part 92, which outlines its detailed operating requirements and compliance standards.

Program administration

The Office of Community Planning and Development at HUD is responsible for national oversight, policy development, and allocation of funds. At the state level, administering agencies like the New York State Homes and Community Renewal or the California Department of Housing and Community Development manage the program. Local administration is typically handled by city or county housing departments, such as the Los Angeles Housing Department or the Chicago Department of Housing. These participating jurisdictions must prepare and submit a Consolidated Plan to HUD, outlining their housing strategies and how funds will be used, and are subject to monitoring and audits to ensure compliance with federal regulations.

Eligible activities and grantees

Eligible activities are broad and include tenant-based rental assistance, housing rehabilitation, assistance to homebuyers, and new construction of affordable housing. Funds can be used for acquisition, site improvements, demolition, and relocation costs. Eligible grantees are states, units of local government, consortia of governments, and designated public agencies. A critical requirement is that a minimum of fifteen percent of a jurisdiction's allocation must be set aside for community housing development organizations, which are typically nonprofit entities like Habitat for Humanity or local community development corporations.

Funding and allocation

Funding is determined by a formula established in the Cranston-Gonzalez National Affordable Housing Act, which considers factors like population, poverty, and housing overcrowding. Allocations are made annually through the federal appropriations process conducted by the United States Congress. Funds are distributed directly to participating jurisdictions, which must commit them to specific projects within 24 months and expend them within five years. Jurisdictions are also required to match twenty-five percent of their allocation with non-federal resources, which can include land donations, tax abatements, or other locally sourced funds.

Impact and outcomes

Since its inception, the program has been a major contributor to the national affordable housing stock, supporting the creation or preservation of over 1.3 million units of housing. It has facilitated partnerships with organizations like the Enterprise Community Partners and the Local Initiatives Support Corporation. Outcomes are measured through performance reports submitted to HUD, tracking metrics such as the number of households assisted and the leveraging of additional public and private investment. The program's flexibility has allowed it to support diverse projects, from supportive housing for persons with disabilities developed by agencies like the Massachusetts Department of Housing and Community Development to homeownership initiatives in rural areas.

Criticisms and challenges

Critics, including the Government Accountability Office and advocacy groups like the Center on Budget and Policy Priorities, have pointed to challenges such as the slow expenditure of funds by some grantees and complex administrative requirements that can delay projects. Some analyses suggest the program's funding has not kept pace with need, particularly during housing crises. Other criticisms involve oversight and the risk of fraud or misuse, leading to investigations by bodies like the HUD Office of Inspector General. The matching fund requirement can also be a barrier for economically distressed jurisdictions, potentially limiting the program's reach in the most needy areas.

Category:United States Department of Housing and Urban Development Category:Affordable housing in the United States Category:United States federal housing legislation