Everyone deserves a safe, stable, and affordable place to live. That’s the heart behind the HOME Investment Partnerships Program, one of the largest federal block grants in the U.S. dedicated exclusively to creating affordable housing for low-income families.
Whether it’s building new homes, fixing up old ones, or offering rental assistance, the HOME Program helps communities across the country meet one of their biggest challenges: housing that’s both affordable and livable.
Let’s break it down in everyday terms.
What Is the HOME Investment Partnerships Program?
The HOME Program—run by the U.S. Department of Housing and Urban Development (HUD)—provides flexible funding to states and local governments to build, buy, or rehabilitate housing for low-income households.
Unlike rigid federal programs, HOME gives local leaders the freedom to decide how to use the funds based on their own community’s needs. Think of it as a housing toolkit. Cities and counties can use HOME to:
- Build new homes or apartment units
- Rehabilitate rundown properties
- Help first-time homebuyers with down payments
- Provide rental assistance to struggling families
It’s not a one-size-fits-all approach—it’s local solutions with federal support.
Who Receives HOME Funds?
HOME funding goes to entities called Participating Jurisdictions (PJs). These include:
- States
- Cities
- Urban counties
- Consortia (groups of smaller towns working together)
Each PJ gets a slice of the annual HOME budget based on a formula that considers population size, poverty levels, and housing conditions. They then decide how to distribute the funds through local programs or partnerships with:
- Nonprofits
- Community housing development organizations (CHDOs)
- Private developers
Who Benefits from the Program?
The short answer: low-income individuals and families. More specifically, people who earn 60% or less of the area median income (AMI) are the primary focus, with some activities targeting households at 50% or lower.
That means working families, seniors, veterans, and single parents—people who often struggle with rising rents or homeownership hurdles—can get real, life-changing help through HOME-funded projects.
How the Funds Are Used: A Look at the Options
HOME dollars can be used in four major ways:
1. Homebuyer Assistance
PJs can offer down payment help, closing cost support, or low-interest loans to first-time homebuyers. This opens the door for families who otherwise couldn’t afford to purchase a home.
2. Home Rehabilitation
Older homes that are falling apart can get a new lease on life. HOME funds can cover roof repairs, plumbing upgrades, window replacements, and energy-efficient upgrades.
3. Rental Housing Construction or Rehab
PJs can work with developers to build new affordable apartments or renovate older ones, making sure tenants have clean, safe, and decent places to live.
4. Tenant-Based Rental Assistance (TBRA)
HOME can also be used like a local version of Section 8, providing short- or long-term rent subsidies to families in need.
What Makes the HOME Program Unique?
A few key features set HOME apart:
- Local control – Communities decide how best to use funds
- Long-term affordability – HOME requires units to remain affordable for 5 to 20 years, depending on the project
- Nonprofit partnership – At least 15% of funds must go to CHDOs, ensuring that mission-driven groups are part of the solution
- Matching funds – Local governments must contribute at least 25 cents for every $1 of HOME funds, promoting shared responsibility
In other words, it’s not just federal handouts—it’s federal-local teamwork with accountability.
Why It Matters
Let’s face it—affordable housing is in crisis. Rents are rising. Home prices are soaring. Wages aren’t keeping up. The HOME Program plays a critical role in leveling the playing field for families who are getting priced out of the market.
This program doesn’t just help people find a place to live—it helps them stay in their communities, raise their kids in safe homes, and build equity over time.
It’s a cornerstone of housing stability, neighborhood revitalization, and poverty reduction.
