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Use of Funds

Eligible Activities - Owners, Sponsors, Developers

Using the 15% set-aside, a CHDO acting as an  owner, sponsor, or developer may undertake any of the following activities:

  • acquisition and/or rehabilitation of rental
    property;
  • new construction of rental housing;
  • acquisition and/or rehabilitation of homebuyer property;
  • new construction of homebuyer property;
  • direct financial assistance to purchasers of HOME-assisted housing sponsored or developed by a CHDO with HOME funds.

Ineligible Activities - Owners, Sponsors, Developers

Using the 15% set-aside, a CHDO acting as an owner, sponsor, or developer may not undertake any of the following activities:

  • rehabilitation of existing homeowners' properties;
  • tenant-based rental assistance.

Eligible Activities - Subrecipients

CHDOs may also act as subrecipients with non-set-aside funds by undertaking all other HOME-eligible activities such as:

  • TBRA;
  • homeowner rehabilitation;
  • providing downpayment or closing cost assistance; and
  • brokering or other real estate transactions that are not counted towards the set-aside.

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