HOME Program Partners

HOME Program Partners

To ensure success in providing affordable housing opportunities, the HOME Program requires PJs to establish new partnerships and maintain existing partnerships. Partners play different roles at different times, depending upon the project or activity being undertaken with HOME funds. Key program partners include:

- PJs. A PJ is any state, local government, or consortium that has been designated by HUD to administer a HOME program.

      - State governments: States are given broad discretion in administering HOME funds. They may allocate funds to units of local government directly, evaluate and fund projects themselves, or combine the two approaches. States may also fund projects jointly with local PJs. They may use HOME funds anywhere within the state, including within the boundaries of local PJs.

      - Local governments and consortia: Units of general local government, including cities, towns, townships, and parishes, may receive PJ designation or they may be allocated funds by the state. Contiguous units of local government may form a consortium for the purpose of qualifying for a direct allocation of HOME funds. The local government or consortium then administers the funds for eligible HOME uses.

- Community Housing Development Organizations (CHDOs). A CHDO is a private, nonprofit organization that meets a series of qualifications prescribed in the HOME regulations. Each PJ must use a minimum of 15 percent of its annual allocation for housing that is owned, developed, or sponsored by CHDOs. PJs evaluateorganizations’ qualifications and designate them as CHDOs. CHDOs also may be involved in the program as subrecipients, but the use of HOME funds in this capacity is not counted towards the 15 percent set-aside.

- Subrecipients. A subrecipient is a public agency or nonprofit organization selected by a PJ to administer all or a portion of its HOME program. It may or may not also qualify as a CHDO. A public agency or nonprofit organization that receives HOME funds solely as a developer or owner of housing in not considered a subrecipient.

Other important partners in the HOME Program include:

- Developers, owners and sponsors. Developers, owners, and sponsors of housing developed with HOME funds may be for-profit or nonprofit entities. Developers are the entities responsible for the putting the housing deal together. Owners are the entities that hold title to the property after rehabilitation, construction, or acquisition. Sponsors work with other organizations—such as other nonprofits—to assist them to develop and

own housing. At project completion, they turn over title to the property to the other organization.

- Private lenders. Most HOME projects leverage or involve other financing, from for-profit lenders or other entities such as foundations or community groups.

- Third-party contractors. There is a range of other entities that might work on the HOME Program, such as architects, planners, construction managers, real estate agents, or consultants. These third-party contractors are responsible for specific, well-defined tasks that contribute to the PJ’s overall affordable housing activity, such as consolidated planning.

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