Types of Activities (Rehabilitation, Acquisition, etc.)

Eligible uses of HOME funds generally fall into four categories: owner-occupied housing rehabilitation activities, assistance to home buyers, rental housing development activities, and tenant-based rental assistance (TBRA). The HOME statute specifies that rehabilitation of both rental and homeowner units should be given preference over other types of eligible uses of HOME funds, such as acquiring or constructing affordable housing.

As shown in Figure 4, of the nearly 1.5 million housing units and TBRA households that have been assisted using HOME funding from the program’s beginning through July 31, 2014, nearly 500,000 (34%) were rehabilitated units, about 390,000 (26%) were acquired units, and about 290,000 (20%) were newly constructed units. An additional 290,000 (20%) of “units” were households that received TBRA rather than physical housing units.

Figure 4. Number of Completed HOME Units and Households Receiving TBRA by Activity Type

Through July 2014

HOME units completed


Source: Figure created by CRS based on data in HUD’s July 31, 2014 HOME National Production Report.

Some activities are more expensive than others and require a larger investment of HOME funds. Therefore, the breakdown of total HOME funding used for each eligible activity looks somewhat different than the number of units completed for each eligible activity. For example, rehabilitated units accounted for just over one-third of the completed units (including TBRA) that used HOME funds, but the funds used for rehabilitation account for nearly 43% of total HOME funds expended on completed units (a total of about $12 billion since the program’s inception). Acquired units accounted for over a quarter of completed units that use HOME funds, but account for only about 15% of the funding (about $4 billion). New construction and TBRA each accounted for about 20% of completed units, but new construction accounts for nearly 40% of the funds spent (almost $11 billion) while TBRA accounts for only 3% of funds spent (less than $1 billion). Figure 5 illustrates the amount of funding that has been spent on each activity since the program began.

The difference between the percentage of funding going toward each activity and the percentage of completed units of each activity type reflects the difference in the average investment of HOME funds required for each activity. A newly constructed unit costs the most, on average: a newly constructed unit costs an average of $38,000 in HOME funds, while the average cost of rehabilitating a unit is $24,000 in HOME funds and the average cost of acquiring a unit is about $11,000 in HOME funds.

Figure 5.HOME Funds Spent by Activity Type

Through July 31, 2014 ($ in billions)


HOME funds spent


Source: Figure created by CRS based on data in HUD’s July 31, 2014 HOME National Production Report.

Whether a PJ uses HOME funds for rehabilitation, acquisition, or new construction depends in part on the types of programs it is administering and the housing needs it is trying to meet. As shown in Figure 6, about three quarters of home buyer units that receive HOME funds use those funds for acquisition costs (such as down payment assistance). A relatively small number of home buyer units use HOME funds for rehabilitation or new construction. In contrast, virtually all owner-occupied units with HOME investments use those funds for rehabilitation activities. For rental units that use HOME funds, about half of the units are rehabilitated. Most of the remaining HOME rental units are newly constructed, with just a small number of rental units receiving HOME funds for acquisition costs.

Figure 6.Type of Investments in HOME Units by Unit Type

Through July 31, 2014


HOME type of investments

Source: Figure created by CRS based on data in HUD’s July 31, 2014 HOME National Production Report.

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