HOME Investment Partnerships Program

Program Overview

The HOME Investment Partnerships Program (HOME) is a federal program that supports affordable housing. It provides funding to State and certain local governments. Maryland's program is administered by the Community Development Administration (CDA) Development.

A portion of the annual funding allocated to DHCD is used in conjunction with existing CDA programs:

Community Development Programs
Homeownership Programs
Special Loan Programs

Eligible Projects

HOME funds may be used to build, buy or fix:

Rental housing
Owner-occupied housing
Special needs housing such as group homes

If you are using HOME funds together with other CDA’s programs, projects must meet both:

CDA program eligibility requirements
HOME program federal requirements

Eligible Applicants

The following jurisdiction/recipients are eligible to apply for HOME funds:

State Government Agencies are automatically eligible for HOME funds and receive either their formula allocation or $3 million, whichever is greater.
Local Governments
Local Housing Agencies
Nonprofit Organizations

Eligible Residents

For rental housing units, the residents household incomes must be 50% or less of the area median household income. This income limit is based on household size and is set annually by HUD.
For owner-occupied housing units, the owner’s household income must be 55% or less of the area median household income. This income limit is based on household size and is set annually by HUD.

Number of Required Affordable Units

The number of income-restricted units is usually calculated by dividing the amount of HOME funds by the total cost of the project, then multiplying that result by the total number of units in the project.

CDA may allow fewer income-restricted units if needed to keep the project financially stable.

Terms of HOME Funds

HOME funds are usually provided as zero interest deferred loans.
In some cases, they may be provided as grants or regular (amortized) loans.
If the property is sold or stops being used for low-income housing, the borrower must share any equity gain with CDA.
Loan terms range from 20 to 40 years depending on the type of housing financed.
The maximum amount of assistance to a single project or activity generally will not exceed the amount needed to make the project viable and to comply with any federal HOME regulations.