Housing Development - HOME Investment Partnerships Program (HOME)

The HOME Investment Partnerships (HOME) Program is a federal program that provides funds to the State and certain local governments to promote affordable housing activities. Maryland's program is administered by CDA and a portion of the annual allocation is used in conjunction with existing CDA Development, Homeownership, and Special Loan Programs. Funds also are allocated to an Initiatives Fund, which are awarded competitively to stimulate ideas, test new ideas in housing, initiate pilot programs, and support promising projects.

HOME funds may be used to finance the construction, acquisition, and rehabilitation of rental housing, owner-occupied housing, and special needs housing such as group homes. For HOME funds used in conjunction with CDA programs, projects must meet the eligibility criteria for the CDA program. For HOME funds from the Initiatives Fund, eligible projects must be projects that are ineligible for or do not need CDA program funds, or for programs, projects, and activities which CDA has elected, as a matter of policy, not to fund under its existing programs.

Nonprofit organizations, local governments, local housing agencies and State government agencies are eligible to apply for HOME funds.

For rental housing units, HOME funds are targeted to residents with incomes that do not exceed 50 percent of area median income or non-metro median income, whichever is the greater, adjusted for household size. For owner-occupied units, HOME funds are targeted to those with incomes at or below 55 percent of the statewide median income for a four-person household. The number of units restricted for income purposes will generally be equal to the number of units determined by dividing the HOME funds by the total cost of the project and multiplying the result times the total units in the project. CDA may approve a lesser number of restricted units at these income levels if the lesser number is needed for financial viability of the project.

Generally, HOME funds are provided as zero interest deferred loans, but may be provided as grants under certain limited circumstances. Loans require equity sharing with CDA in the event the project is sold or no longer provides low- income housing. Loan terms range from 20 to 40 years depending on the type of housing financed. The maximum amount of assistance to a single project or activity generally will not exceed the amount needed to make the project viable and to comply with any federal HOME regulations.

Local governments may apply for funds through the Initiatives Fund for projects, programs, or activities. Local government comments are also solicited on all projects for which HOME funds are requested.

Single Family Housing Programs
Community Development Administration
Maryland Department of Housing and Community Development
100 Community Place
Crownsville, MD 21032-2023
410-514-7530
Toll Free (Maryland Only): 800-638-7781
peschaum@dhcd.state.md.us