HOME Program Current Issues COSCDA Conference March 2015

HOME Budget & Production Trends HOME FY 2015 Appropriation: $900 Million 51% decrease since FY 2010 ($1.804b) FY 16 Request - $1.050 billion (+16%)

FY 2007 - 2015 Appropriations

Effect of Reduced Appropriation Minimum statutory qualification/participation thresholds for PJs - $500,000/$750,000 At $900m, 289 of 645 PJs receive allocations <$500,000 (49% of local PJs; 45% of all PJs) 60 PJs < $250,000

HOME and LIHTC In calendar years 2011 -2013, $2.05 billion of HOME funds was invested in 1,707 LIHTC projects (based on HOME completions): Producing 86,119 total rental units At an average HOME investment of $1.2 per project

HOME Four-Year Accomplishments   FY 2011 FY 2012 FY 2013 FY 2014 Rental Units 39,162 28,779 20,929 20,540 Homebuyer Units 21,593 20,129 15,350 12,854 Homeowner rehab Units 9,137 9,017 10,547 6,431 Total units Completed 69,892 57,925 46,826 39,825 TBRA Households Assisted 15,683 15,929 12,363 11,744

FY 2007 - 2014 Accomplishments

Cumulative / FY 2014 Tenure Type

CHDO Reservations & Expenditures New HOME Rule changes effective 1/1/15: Non-project-specific reservations to CHDOs no longer count toward: The 15% CHDO set-aside requirement; and As a commitment toward the overall commitment requirement. Established a separate 5-year CHDO expenditure deadline

Corresponding Report Changes Deadline Compliance Status Report for 2015 deadlines: Commitment requirement for grants through 2013 Includes new CHDO commitment requirement Disbursement requirement for grants through 2010 Includes new CHDO disbursement requirement CHDO reservation requirement removed New guidance to be issued shortly

HOME Commitment Change GAO issued opinion that HUD’s current “cumulative method” violates Sec 218(g) of NAHA, which establishes 24-month commitment requirement. HUD must implement commitment and CHDO reservation requirements on a grant-specific basis HUD drafting proposed rule to implement grant-specific method

HOME Commitments PJs must commit funds from each specific grant within 24 months 15% of each grant must be used for CHDO set-aside project (no more cumulative average) HOME funds uncommitted after 24 months cannot be recommitted Cancelled projects Projects completed below budget Change to treatment of program income required

HOME Commitments HUD anticipates significant increase in deobligations for: Failure to commit timely Funds becoming uncommitted after deadline New methodology may apply as early as FY 15 grants with deadlines occurring in 2017