Notice CPD-14-08 provides operating guidance to jurisdictions on requirements that Congress included in the FY12 and FY13 appropriations bills regarding the HOME Investment Partnerships (HOME) program. The notice also explains how these requirements are affected by the HOME Final Rule published on July 24, 2013.
The Appropriations Act of 2012 imposed new requirements on projects that receive FY12 HOME funds, and the Appropriations Act of 2013 imposed the same requirements on projects that receive FY13 HOME funds.
These laws require participating jurisdictions (PJs) to:
1) Repay any HOME funds invested in projects not completed within four years of the date funds are committed. HUD may grant a one-year extension if the failure to complete the project was beyond the control of the PJ.
2) Commit FY12 and FY13 HOME funds only to a project after the PJ has underwritten the project, assessed the development capacity and fiscal soundness of the developer being funded, and examined neighborhood market conditions to ensure that there is an adequate need for the HOME project.
3) Convert any FY12 and FY13 HOME-assisted homeownership unit not sold within six months of completion to a HOME-assisted rental unit.
4) Provide FY12 and FY13 HOME funds for development activities only to Community Housing Development Organizations (CHDOs) that have staff with demonstrated development experience.
The 2013 final HOME rule contains provisions similar to those in the FY12 and FY13 appropriation laws. The provisions in the final rule apply to all projects for which funds are committed on or after August 23, 2013. To eliminate situations in which a project would be subject to both the FY12/FY13 appropriation laws and the provisions of the 2013 HOME final rule, the Appropriations Act of 2014 states that any project subject to the 2013 HOME rule is not subject to the FY12/FY13 appropriation requirements, regardless of the source year of the funds.
The notice goes into details for each of the four FY12/FY13 appropriations requirements and compares them to the 2013 final rule requirements.
View Notice CPD-14-08 at http://portal.hud.gov/hudportal/documents/huddoc?id=14-08cpdn.pdf