HOME CHDO (Community Housing Development Organizations) Program

HOME is the largest Federal block grant to State and local governments designed exclusively to create affordable housing for low-income households. Each year it allocates approximately $2 billion among the States and hundreds of localities nationwide.

The HOME Program is authorized under Title II of the Cranston-Gonzalez National Affordable Housing Act, as amended. HOME provides formula grants to States and localities to fund a wide range of activities that build, buy, and/or rehabilitate affordable housing for rent or homeownership or provide direct rental assistance to low-income people.

The Department of Community Affairs is one of 28 participating jurisdictions in New Jersey with HOME funds to distribute. Before seeking HOME funds from the Department, you should contact the city or county in which your project is located to determine whether HOME funds are available there.
The HOME CHDO Program is administered by the Department in accordance with both the federal HOME program rules, found at 24 CFR Part 92, and the rules of the Department s Balanced Housing Program (N.J.A.C 5:43-1.1 et seq.). When Federal and State program requirements differ, the more stringent will apply. 
To be eligible to apply to this program you must be a State certified CHDO. To be eligible for funds from this set-aside, a non-profit organization must have submitted CHDO documentation to the Department, and be certified as a CHDO.

Further information about CHDO eligibility and certification is available by calling (609) 292-3846 or click on the link below titled: HOME CHDO designation and application.

General requirements 
Any units created with HOME funds must be affordable to low-income families (generally defined as having an adjusted gross income below 80% of the applicable area median income). These units may either be rented or sold to qualified households using the following assumptions:

• If the unit is for rent, the family should pay no more than 35% (40 percent for households applying for age-restricted units) of its gross income for rent and utilities.
• If the unit is for sale, the buyer should pay no more than 28% of household income monthly for mortgage principal and interests, taxes and insurance, and condominium fees where applicable

The project activity must include rehabilitation (whether substantial or moderate), new construction, or conversion of non-residential properties to residential use.

HOME Production Program funds may be used for construction costs and development costs such as professional fees and financing costs. Acquisition is an eligible cost; however, acquisition of vacant land alone is not an eligible use of funds. HOME funds also may be used to cover deficits during the first 18 months of operation for a rental project.

Rental units are to be used for permanent housing.

Any contract for construction (rehabilitated or new construction) of 12 or more HOME-funded units must contain a provision requiring use of prevailing wage rates as defined by the Davis-Bacon Act.