HUD has posted the 2016 homeownership value limits (the “95% limits”) for the National Housing Trust Fund (NHTF) and HOME Investment Partnerships (HOME) programs.
According to the NHTF statute, a state may devote no more than 10% of its annual NHTF allocation for homeowner activities, which include constructing, rehabilitating, or preserving housing for homeownership. NHTF may also be used to assist homeowners with down payment or closing cost assistance and to make interest rate buy-downs. To be eligible for homeowner assistance in the NHTF program, the assisted homebuyer’s must have income less than 50% of the area median income, be a first-time homebuyer, and complete HUD-certified homeownership counseling.
The NHTF statute also requires that homes have an initial purchase price that meets requirements in the Cranston-Gonzalez National Affordable Housing Act, which created the HOME program. The NHTF Interim rule requires that the initial purchase price or after-rehabilitation value of NHTF-assisted homeownership units not exceed 95% of the area’s median purchase price for newly constructed or standard existing housing.
These values will be effective on May 2.
The NHTF values are at http://bit.ly/1QapVLy
The HOME values are at http://bit.ly/23zfMVH