HOME Investment Partnerships Program (HOME) – Grants to Build Affordable Housing for Low-Income Households 2026 Guide
HOME Investment Partnerships Program (HOME) – Grants to Build Affordable Housing for Low-Income Households 2026 Guide
The HOME Investment Partnerships Program (HOME) is one of the largest federal block grant programs in the United States dedicated exclusively to creating affordable housing for low-income households. Administered by the U.S. Department of Housing and Urban Development (HUD), this program empowers states and local governments to build, buy, and rehabilitate affordable homes while strengthening communities.
If you are a low-income renter, first-time homebuyer, nonprofit developer, real estate investor, or local government official, understanding how the HOME Program works can open the door to significant funding opportunities and affordable housing solutions.
In this comprehensive 2026 SEO-optimized guide, we’ll cover:
- What the HOME Investment Partnerships Program is
- Who qualifies for HOME assistance
- How funds are allocated
- Types of housing activities funded
- How developers and nonprofits can apply
- HOME vs. other federal housing programs
- Frequently asked questions
What Is the HOME Investment Partnerships Program?
The HOME Investment Partnerships Program is a federal grant program established under the Cranston-Gonzalez National Affordable Housing Act of 1990. It provides annual grants to states and local governments to fund a wide range of affordable housing activities for low-income households.
The program is designed to:
- Increase the supply of affordable housing
- Strengthen public-private housing partnerships
- Expand the capacity of nonprofit housing providers
- Provide direct rental and homeownership assistance
Unlike direct federal construction projects, HOME funds are distributed to participating jurisdictions (PJs), which then design housing strategies based on local needs.
Who Administers the HOME Program?
The HOME Program is administered by HUD through its Office of Affordable Housing Programs (OAHP).
Funds are distributed to:
- States
- Large cities
- Urban counties
- Consortia (groups of smaller jurisdictions working together)
These entities are called Participating Jurisdictions (PJs).
Each PJ must submit a Consolidated Plan outlining:
- Local housing needs
- Funding priorities
- Target income groups
- Specific housing activities
Who Qualifies for HOME Assistance?
The HOME Program primarily serves low-income households.
Income Eligibility Requirements
To qualify, households must generally fall within these income limits:
- Low-income: ≤ 80% of Area Median Income (AMI)
- Very low-income: ≤ 50% of AMI
HUD updates AMI limits annually, and they vary by location.
Income Targeting Rules
- At least 90% of HOME rental assistance must benefit households at or below 60% of AMI.
- All HOME-assisted rental units must be occupied by income-eligible households.
What Types of Housing Activities Does HOME Fund?
The HOME Program is flexible and can fund a wide range of affordable housing activities.
1. New Construction of Affordable Housing
HOME grants can finance:
- Multifamily rental housing
- Single-family homes
- Mixed-income developments (with HOME-restricted units)
Funds may be used for:
- Land acquisition
- Construction costs
- Site improvements
- Infrastructure
2. Rehabilitation of Existing Housing
HOME funds can be used to:
- Repair aging rental properties
- Upgrade substandard housing
- Improve accessibility
- Address health and safety issues
This is especially important in preserving affordable housing stock.
3. Tenant-Based Rental Assistance (TBRA)
HOME funds can provide rental assistance similar to vouchers.
However, HOME TBRA is different from:
- Housing Choice Voucher Program
Unlike Section 8, HOME TBRA is locally administered and may have time limits depending on the jurisdiction.
4. First-Time Homebuyer Assistance
HOME funds can support:
- Down payment assistance
- Closing cost assistance
- Mortgage buy-downs
- Direct homebuyer subsidies
Many states use HOME funds to create first-time homebuyer programs for low-income families.
5. Community Housing Development Organizations (CHDOs)
A unique feature of the HOME Program is the required set-aside for CHDOs.
At least 15% of HOME funds must be reserved for CHDOs.
CHDOs are nonprofit housing developers that:
- Serve low-income communities
- Have community-based boards
- Develop and manage affordable housing
This strengthens nonprofit participation in affordable housing development.
How Is HOME Funding Allocated?
HUD distributes HOME funds using a formula based on:
- Population
- Poverty rates
- Housing overcrowding
- Age of housing stock
Large cities and urban counties receive funds directly. Smaller jurisdictions receive funds through state programs.
Each year, Congress appropriates funding for the HOME Program as part of the federal budget.
How Developers Can Access HOME Funds
Real estate developers, nonprofit organizations, and housing agencies can apply for HOME funding through their local Participating Jurisdiction.
Step-by-Step Process
- Identify your local PJ
- Review their Consolidated Plan
- Monitor Notice of Funding Availability (NOFA)
- Submit a detailed project proposal
- Meet affordability and compliance requirements
HOME Affordability Requirements
HOME-assisted units must remain affordable for a specific period.
Affordability Periods
- 5 years (small rehab projects)
- 10–15 years (moderate rehab)
- 20 years (new construction rental housing)
During this period:
- Rent limits apply
- Income eligibility must be maintained
- Resale restrictions may apply
HOME Rent Limits
HUD establishes maximum HOME rents based on AMI.
Two types:
- High HOME Rent
- Low HOME Rent
Rents must be affordable to households at 60% AMI or below.
HOME vs. Other Federal Housing Programs
HOME vs. Section 8
Feature HOME Section 8 Administered by Local PJs Public Housing Authorities Funding Type Block Grant Voucher Project-Based? Yes Optional Rental Assistance Yes (TBRA) Yes
HOME vs. Community Development Block Grant (CDBG)
Both are HUD programs, but:
- HOME focuses specifically on affordable housing.
- CDBG has broader community development purposes.
HOME vs. Low-Income Housing Tax Credit (LIHTC)
The Internal Revenue Service administers LIHTC through tax incentives.
Developers often combine:
- HOME funds
- LIHTC
- State housing grants
- Private financing
This layered financing makes large affordable housing developments possible.
Benefits of the HOME Program
1. Flexibility
Local control allows tailored solutions.
2. Leverage Effect
HOME funds often attract private investment.
3. Community Impact
Supports:
- Job creation
- Neighborhood revitalization
- Housing stability
4. Long-Term Affordability
Ensures units remain affordable for years.
Challenges of the HOME Program
- Complex compliance rules
- Income verification requirements
- Long affordability restrictions
- Limited annual funding
Despite challenges, it remains a cornerstone of U.S. affordable housing policy.
How Low-Income Families Can Apply
To apply for HOME assistance:
- Contact your local housing department
- Visit your state housing finance agency website
- Search for HOME-funded rental properties
- Apply directly with property managers
How Nonprofits Can Become CHDOs
To qualify as a CHDO:
- Be a nonprofit organization
- Have 1/3 low-income board representation
- Demonstrate development capacity
Once certified, CHDOs can access the 15% set-aside funds.
Compliance and Monitoring
Participating Jurisdictions must:
- Conduct annual monitoring
- Ensure rent compliance
- Verify income eligibility
- Submit performance reports to HUD
Failure to comply can result in repayment obligations.
Economic Impact of the HOME Program
The HOME Program:
- Creates construction jobs
- Stabilizes housing markets
- Reduces homelessness risk
- Expands homeownership opportunities
Affordable housing is critical for workforce stability and economic growth.
Frequently Asked Questions (FAQ)
Is HOME the same as Section 8?
No. HOME is a block grant program, while Section 8 provides vouchers through housing authorities.
Can HOME funds be used for emergency rental assistance?
Yes, through Tenant-Based Rental Assistance (TBRA).
Are HOME homes free?
No. They are affordable, not free. Tenants pay rent based on income limits.
Can investors use HOME funds?
Yes, but projects must meet strict affordability and compliance requirements.
2026 Outlook for HOME Program
As housing affordability remains a national crisis, the HOME Program continues to play a critical role in expanding affordable housing supply.
Future priorities may include:
- Climate-resilient housing
- Energy-efficient affordable units
- Rural housing expansion
- Mixed-income developments
Local governments are increasingly combining HOME funds with other federal and state resources to maximize impact.
Final Thoughts
The HOME Investment Partnerships Program is a powerful federal initiative that supports affordable housing development, rental assistance, and homeownership opportunities for low-income households across the United States.
Whether you are:
- A low-income renter seeking affordable housing
- A nonprofit developer building community-based housing
- A city official planning housing strategies
- A real estate investor exploring public-private partnerships
Understanding how HOME works can unlock significant opportunities.
As housing costs continue to rise nationwide, federal programs like HOME remain essential to ensuring safe, decent, and affordable housing for millions of Americans.
Disclaimer
This article is for informational and educational purposes only. Program guidelines, income limits, and funding availability may change annually. Always consult your local housing authority or the U.S. Department of Housing and Urban Development (HUD) for the most up-to-date and official information before applying or making financial decisions.
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