The
HOME Program imposes an affordability period on projects assisted
with HOME funds in order to ensure that HOME investments yield affordable
housing over the long term.
For
Homebuyer Projects, the length of the affordability period
is based on the amount of HOME funds invested in the property.
Affordability
Period for Homebuyer Projects:
HOME
FUNDS PROVIDED
|
AFFORDABILITY PERIOD
|
<$15,000
$15,000
- $40,000
>$40,000
|
5
years
10
years
15
years
|
For
Rental Projects, the length of the affordability period is
based on the amount of HOME funds invested in the property, as well
as on the nature of the activity funded.
Affordability
Period for Rental Projects:
ACTIVITY
|
AVERAGE
PER-UNIT HOME
|
MINIMUM
AFFORDABILITY PERIOD
|
Rehabilitation
or Acquisition of Existing Housing |
<$15,000
$15,000
- $40,000
>$40,000
|
5
years
10
years
15
years
|
Refinance
of Rehabilitation Project |
Any
dollar amount |
15
years |
New
Construction or Acquisition of New Housing |
Any
dollar amount |
20
years |
Click
on the underlined keywords below for more information on the affordability
period and related requirements applicable to each type of HOME
activity.
|
For
homebuyer
projects, the affordability period affects the terms of the resale/recapture
of the property if sold during the affordability period. |
|
For
rental
projects, rent and occupancy requirements remain in effect for
the length of the affordability period. |
|
Affordability
periods do not apply to homeowner
rehabilitation or TBRA
activities. |
For
further guidance, see HOMEfires,
Vol. 5, No. 2.
|