PJs must commit all HOME funds for affordable housing projects within 24 months of allocation. Included in this commitment requirement is the CHDO set-aside. PJs must reserve at least 15% of their HOME funds for projects owned, developed or sponsored by CHDOs within the 24-month timeframe.
- If HUD determines that a PJ has not committed its overall funds or reserved at least 15% of its funds for CHDOs in accordance with the requirements, it will deobligate the appropriate amount from the PJ's HOME Investment Trust account at the Treasury.
- Deobligated funds resulting from PJs' inability to meet the commitment requirements are reallocated in accordance with the HOME regulations.
To read about how HUD determines commitment requirements, see HUD CPD Notice 99-04 "Commitment and Expenditure Deadline Requirements for the HOME Program." Clicking on the above link will bring you to the HUD CPD index, from which you can download CPD Notice 99-04 for review. This notice is also a good reference for guidance on expenditure requirements.