The HOME Investment Partnerships Program (HOME) is the largest federal block grant created exclusively to build and preserve affordable housing for low-income households. HUD distributes roughly $1.3 billion a year to states and units of local government, which use it for affordable housing development, rehabilitation, tenant-based rental assistance, and homebuyer programs. This guide walks through who can apply, how the money flows, what HOME funds, and the steps to put together a competitive application.
Who Can Apply for HOME Funds
Like most HUD block grants, HOME money does not go directly from HUD to individual nonprofits. It flows through participating jurisdictions (PJs) - states and larger local governments that receive an annual HOME allocation by formula. Which path applies to you depends on where your project is located:
- Participating jurisdictions. States and qualifying cities and counties receive HOME funds directly from HUD and run their own funding rounds, choosing which projects and activities to fund.
- Subrecipients and developers. Nonprofits, housing developers, and community development corporations typically receive HOME dollars by applying to a participating jurisdiction's funding round - not to HUD directly.
- Community Housing Development Organizations (CHDOs). Every PJ must set aside at least 15% of its HOME allocation for projects owned, developed, or sponsored by certified CHDOs - nonprofit housing organizations that meet specific capacity and board-representation rules. If you can qualify as a CHDO, you gain access to that dedicated set-aside.
If you are a nonprofit or developer, your first move is to identify the participating jurisdiction that covers your project's location and find out when it accepts proposals - and whether becoming a certified CHDO makes sense for your organization.
What HOME Can Pay For
HOME is flexible within affordable housing, but every activity has to serve low-income households (generally at or below 80% of area median income, with deeper targeting for rental projects). Common eligible uses:
| Activity | Examples |
|---|---|
| Rental housing | New construction, acquisition, and rehabilitation of affordable rental units, with long-term affordability and rent limits |
| Homebuyer programs | Down payment and closing-cost assistance, and development of homes for sale to income-eligible buyers |
| Homeowner rehab | Repair and rehabilitation of owner-occupied homes for low-income households |
| Tenant-based rental assistance (TBRA) | Time-limited rental subsidies and security-deposit assistance for income-eligible tenants |
HOME generally cannot be used for public housing operating costs, project-based rental assistance under Section 8, or as a substitute for other federal subsidies - the program has specific prohibitions that catch first-time applicants.
The 25% Match and Affordability Periods
Two HOME requirements trip up applicants more than any others:
- The 25% match. Participating jurisdictions must contribute a permanent, non-federal match equal to 25 cents for every HOME dollar drawn. Eligible match includes donated land or materials, the value of below-market financing, foregone fees, and volunteer labor. Build your match plan into the application from the start - it is not an afterthought.
- Affordability periods. HOME-assisted units must remain affordable for a set period - from 5 years for smaller homebuyer and rehab investments up to 20 years for new rental construction. The deeper the HOME investment per unit, the longer the unit must stay affordable, enforced by deed restrictions or covenants.
How to Apply: Step by Step
- Find your participating jurisdiction. Determine whether your project sits in a state or local PJ, then locate that jurisdiction's HOME program page, its Consolidated Plan and Annual Action Plan priorities, and its current Notice of Funding Availability.
- Confirm eligible activity and income targeting. Match your project to an eligible HOME activity and confirm the household incomes you'll serve meet the program limits. Pull the income documentation plan now, not later.
- Decide whether to pursue CHDO status. If you're a nonprofit developer, certification opens the 15% set-aside and dedicated CHDO operating funds - but it requires meeting board, capacity, and experience standards.
- Build the development budget and match plan. Lay out total development cost, sources and uses, the HOME request, and exactly where your 25% match comes from. Every cost should tie to an eligible activity.
- Document affordability and underwriting. Show the rents or sale prices, the affordability period you'll commit to, and an operating pro forma that demonstrates the project is financially feasible for the full term.
- Address capacity and federal compliance. HOME projects carry federal requirements - environmental review, Davis-Bacon labor standards on larger projects, Uniform Relocation Act protections, and ongoing affordability monitoring. Show you can handle them.
- Submit before the deadline and track it. PJ funding rounds are firm. Incomplete or late applications are screened out before review.
Why HOME Applications Get Rejected
- No credible 25% match plan (the single most common avoidable failure).
- An activity or cost that isn't actually HOME-eligible.
- Income targeting or rent limits that don't meet program rules.
- A pro forma that doesn't show feasibility over the full affordability period.
- No realistic plan for environmental review, labor standards, or relocation.
- Missing the PJ's Consolidated Plan priorities, or blowing the deadline.
Find Open Housing & Homelessness Grants
FindGrants tracks open affordable housing and homelessness opportunities for nonprofits and community organizations - HOME and Continuum of Care programs, state housing trust funds, and local funding rounds. You can browse by state, explore funding by type - development, supportive housing, rental assistance, rehab, and homelessness services - check upcoming housing deadlines, or start with the housing nonprofit funding hub. When you're ready to apply, the application builder drafts a complete, export-ready package against the funder's requirements.
The Bottom Line
HOME rewards applicants who get the fundamentals right: the correct participating jurisdiction, a clearly eligible activity, income targeting that meets the rules, a real 25% match, and a pro forma that holds up over the affordability period. Nail those and you're ahead of most of the field. Run your organization's profile to see the housing and homelessness grants you qualify for right now.