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HOME Program
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A brief overview and history...
In 1990, Congress sought an affordable housing plan—national in scope, yet locally flexible. Dollars sent to states and localities via HUD, Congress said, must be administered by seasoned and successful housing finance agencies. As a result, The National Affordable Housing Act of 1990 (of which HOME is one part) was enacted, and the Illinois Housing Development Authority (IHDA) was selected by the governor as the entity best qualified to run HOME statewide.
Federal HOME funds provide resources and flexibility to state and local governments to help them meet a variety of what they determine to be the most pressing low-income needs. State and municipalities use HOME funds for aquisition, rehabilitation, new construction and rental projects. When HOME funds are repaid, the dollars are recycled for new projects.
How do HOME funds help the residents of Illinois?
The purpose of HOME funds is really three-fold. HOME funds are administered to:
Expand the supply of decent and affordable housing for renters and homeowners with low and very low incomes. Depending upon the program, people earning between 50 percent and 80 percent of a region's median income will usually qualify for HOME-assisted housing.
Strengthen the ability of state and local governments to design and implement local affordable housing strategies that (1) increase the stock of decent, reasonably priced dwellings, (2) weigh the unique demographic, economic and other features where housing is built and (3) provide affordable rental housing to low-income families.
Extend and strengthen partnerships among all levels of government, the private sector and non-profit organizations in the production and operation of affordable housing in Illinois.
Can individuals take advantage of HOME funds?
While individuals are NOT ELIGIBLE to apply directly to IHDA for HOME funds, a number of homebuyer and homeowner programs are available through local sponsor agencies across the state.
Who can apply for HOME funds?
HOME's Affordable Multifamily Housing and Single-Family programs are available to for-profit developers, non-profit groups and Community Housing Development Organizations, called CHDOs. Applications are accepted at anytime, year round.
How may HOME funds be used?
In Illinois, HOME funds may be used in five distinct ways. Each of the five HOME funding categories is briefly outlined here and described more fully in the corresponding links. HOME funding categories include:
- Rehabilitation and new construction of affordable multifamily housing.
- Purchase and rehabilitation assistance for homebuyers.
- Rehabilitation of single-family, owner-occupied homes.
- Rehabilitation of rural small rental properties.
- Rehabilitation and new construction of supportive housing for the homeless.
Please note: The HOME Program is not a "categorical" housing program requiring a specific housing activity. Rather, the HOME Program gives states and local governments the authority and freedom to decide exactly what kind of housing assistance—or mix of housing help—is most appropriate to meet their particular housing needs.
How are HOME funds distributed?
IHDA allocates HOME funds according to a ranking system, explained in application packets provided to developers, organizations and local governments. Because demand for HOME financing regularly outstrips its availability in Illinois, proposals that leverage HOME funds with money from other sources are strongly encouraged and receive priority. Finally, all applications may not be funded, and those that are funded may receive less than the full amount requested.
Some Illinois cities, counties or combinations (called HOME "Participating Jurisdictions," or PJs) get their federal HOME fund allocations directly from HUD each year. Any affordable housing developer or organization wishing to do business in these areas of the state should therefore apply not to IHDA, but directly to the local Participating Jurisdictions.
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