What the HOME Investment Partnerships Program does

The HOME Investment Partnerships Program is a federal grant that flows to states and local governments, which then use it to fund housing projects for people with low to moderate incomes. The U.S. Department of Housing and Urban Development (HUD) distributes the money; your city or county decides which projects get it. That means what HOME funds in your area depends entirely on what your local government chooses to build or rehabilitate.

HOME money typically goes toward new construction of affordable rental housing, repair of existing homes, down payment help for first-time homebuyers, or conversion of vacant buildings into housing. The program does not give money directly to individuals. Instead, it pays for projects that create or preserve housing units that people with lower incomes can then rent or buy.

Because HOME is administered locally, the projects it funds, the timeline for completion, and even whether new projects are starting vary by location. Some areas have active HOME-funded construction; others may have completed their current projects and are waiting for the next funding cycle.

Key Takeaways

  • HOME funds come from the federal government but are distributed and managed by your state or local housing authority, not by a single national office.
  • The program pays for housing projects—new construction, rehabilitation, or down payment information—rather than direct payments to individuals.
  • What HOME funds in your area depends on your local government's housing priorities and the projects they choose to pursue.
  • To find out what HOME-funded housing is available where you live, contact your city or county housing department or community development office.
  • HOME-funded rental units and homes for sale are typically reserved for households earning 50 to 80 percent of the area median income, though this varies by project.

How HOME money reaches housing projects

HUD allocates HOME funds to states and to certain large cities and counties that meet population thresholds. These local governments then decide how to spend the money. Some create a competitive grant process where nonprofits and developers propose projects; others work with a single housing authority or development agency.

Once a project is approved for HOME funding, the money typically covers construction or rehabilitation costs, not ongoing operations. A developer or nonprofit might use HOME funds to build a new apartment building, repair a vacant house, or help a first-time buyer with a down payment and closing costs. The project must meet HOME's requirements—including that units remain affordable for a set period, usually 15 to 30 years depending on the project type.

The process from funding approval to a completed project can take one to three years or longer, depending on the scope of work and any complications during construction or permitting. This means HOME-funded housing that is currently available for rent or purchase was likely approved and funded in previous years.

Income limits and who can use HOME-funded housing

HOME-funded housing is reserved for households with incomes at or below a certain percentage of the area median income. That percentage varies by project type. Down payment information programs often serve households at 80 percent of area median income; rental housing may be set aside for households at 50, 60, or 80 percent of median, depending on the project.

Area median income is calculated by HUD for each metropolitan area and county. A household earning $50,000 per year might may have access to in one county but not another, because the median income threshold is different. Your local housing authority or the project manager can tell you the income limit for a specific HOME-funded property.

Income is typically verified through tax returns, W-2s, pay stubs, or other documentation. Some projects also have preferences—for example, prioritizing people who work in the community or have been displaced by development. These preferences are set by the local government or developer managing the project.

Finding HOME-funded housing in your area

Start by contacting your city or county community development department, housing authority, or planning office. These offices maintain lists of HOME-funded projects that are completed or under way. They can tell you which projects currently have units available, what the income limits are, and how to inquire about a specific property.

If your area has a housing authority, that is often the central point for information about affordable housing programs, including HOME. Many housing authorities maintain websites listing current and upcoming projects. Some areas also have community development corporations or nonprofits that manage HOME-funded projects; your local government can direct you to them.

Real estate listing sites do not always identify a property as HOME-funded, so a general search may not show you all available units. Calling your local housing office is the most direct way to learn what is available and what the next steps are for a property you are interested in.

Down payment information through HOME

Some local governments use HOME funds to help first-time homebuyers with down payments and closing costs. These programs are usually managed by a housing authority, nonprofit lender, or community development organization. The amount of information varies—some programs cover a percentage of the down payment; others cover closing costs; some do both.

Down payment information through HOME typically comes with conditions: the buyer must meet income limits, complete homebuyer education, and agree to keep the home as a primary residence for a set period. Some programs require the buyer to repay the information if the home is sold within a certain timeframe; others forgive it after a number of years of ownership.

To find out whether your area offers HOME-funded down payment help, ask your local housing authority or search for "down payment information" plus your city or county name. Nonprofits like NeighborWorks and local community development organizations often administer these programs.

Rental housing created or preserved by HOME

When HOME funds new apartment construction or the rehabilitation of existing buildings for rental, the resulting units are typically affordable for 15 to 30 years. The owner or management company is required by the HOME program to keep rents below a certain level and to rent to households within the income limits set for that project.

Rents in HOME-funded buildings are usually lower than market rate for the area, but they are not free. A household earning 60 percent of area median income might pay 25 to 30 percent of their income in rent, depending on the project's structure and local rent limits. Some HOME-funded buildings also include supportive services—case management, job training, or mental health support—particularly if they serve people experiencing homelessness or other challenges.

To find out about HOME-funded rental housing, contact the property directly or ask your local housing authority for a list. Many properties have waiting lists, so even if units are not when ready available, you can ask to be added to the queue.

Timeline and funding cycles

HOME funding is distributed annually, but the process of planning, approving, and completing a project takes time. Your local government receives its HOME allocation, then issues a call for proposals from developers and nonprofits. Projects are reviewed and selected, funding is awarded, and construction or rehabilitation begins—a cycle that typically takes six months to a year before work starts on the ground.

Once construction begins, the timeline depends on the scope of the project. A down payment information program might process applications year-round; a new apartment building might take 18 to 36 months to complete. Some areas have multiple HOME-funded projects at different stages; others may have completed their current projects and are planning the next round.

If you are interested in HOME-funded housing in your area, ask your local housing office when the next funding cycle begins and what projects are planned. This helps you understand whether new units will be available soon or whether current projects are your only option.

Frequently Asked Questions

How do I know if a rental property or home for sale is HOME-funded?

The property listing or landlord may not mention HOME funding. Your best approach is to contact your local housing authority or community development office and ask for a list of HOME-funded properties currently available. You can also ask the property manager or landlord directly whether the building received HOME funding.

What is the difference between HOME and other affordable housing programs?

HOME is one of several federal programs that fund affordable housing. Others include the Low-Income Housing Tax Credit, Section 8 rental information, and public housing. HOME typically funds construction and rehabilitation; Section 8 provides rental vouchers to individuals. Your local housing authority can explain which programs serve your situation.

Can I use HOME down payment information if I have bad credit?

HOME down payment information programs do not have a single credit requirement—it depends on the specific program and the lender involved. Some programs work with lenders that are more flexible on credit; others require a minimum credit score. Ask the program administrator about their credit policy before you explore.

How long does a HOME-funded unit stay affordable?

Affordability periods vary by project type. Rental housing is typically affordable for 15 to 30 years; down payment information may have a shorter affordability period or may require repayment if you sell the home within a certain timeframe. The specific terms are set when the project is approved and should be explained to you before you rent or buy.

What if there are no HOME-funded projects available in my area right now?

Ask your local housing authority when the next HOME funding cycle begins and what projects are planned. In the meantime, explore other programs: Section 8 rental vouchers, public housing, tax credit properties, or down payment information from other sources. Your housing authority can point you toward other options.