HOME Investment Partnerships Program (HOME)

The HOME Investment Partnerships Program (HOME) is a federal formula grant program established under Title II of the Cranston-Gonzalez National Affordable Housing Act and administered by the U.S. Department of Housing and Urban Development (HUD). The program provides funding to support the development and preservation of affordable housing for low- and very low-income households.

In Hawaiʻi, HOME funds are administered by the Hawaiʻi Housing Finance and Development Corporation (HHFDC). The County of Hawaiʻi receives HOME funding through HHFDC and administers these funds in accordance with federal regulations at 24 CFR Part 92, as well as applicable state requirements.

HOME funds support a broad range of activities that expand the supply of decent, safe, sanitary, and affordable housing, strengthen partnerships with nonprofit housing organizations, and promote long-term housing affordability.

2027 Application Process and Availability of Funds

In 2027, the County anticipates receiving an allocation of $2,850,000 in HOME funds.

Request for Proposals for the 2027 program year is anticipated to be open from September 2026 to November 2026. A tentative schedule will be posted in July 2026.

See Sample 2024 HOME Application here

Program Overview

The HOME Program provides flexible funding to:

• Expand the supply of affordable rental housing
• Support homeownership opportunities for eligible households
• Provide direct assistance to renters and homebuyers
• Partner with nonprofit organizations and private developers
• Leverage additional public and private investment

HOME funds may be used to support the development and preservation of affordable housing through:

• Acquisition of property, including assistance to homebuyers
• New construction, reconstruction, or rehabilitation of non-luxury housing with suitable amenities
• Site improvements, conversion, and demolition
• Project-related costs, including financing and relocation expenses for displaced persons, families, businesses, or organizations
• Tenant-Based Rental Assistance (TBRA), including security deposit assistance
• Administrative and planning costs
• Operating assistance for Community Housing Development Organizations (CHDOs)

All HOME-assisted housing must be permanent or transitional housing and must meet HUD property standards upon project completion (24 CFR §§ 92.206–92.209 and § 92.251).

Eligible beneficiaries are generally households with incomes at or below HUD-established limits. All HOME-funded activities must comply with federal requirements related to income eligibility, property standards, and long-term affordability.

Program Requirements

HOME funds are subject to federal and state requirements, including:

Rent and Subsidy Limits

• HOME-assisted rental housing must comply with HUD-published rent limits, updated annually
• The program establishes maximum per-unit subsidy limits
• Homeownership units must meet maximum property value limits

Match Requirement

• A 25% non-federal match is required for most HOME expenditures (excluding certain administrative costs and CHDO predevelopment loans that do not result in completed projects)
• Match contributions may include donated labor or materials, the value of donated property, bond proceeds, and other eligible resources
• The match requirement may be reduced for jurisdictions experiencing financial distress or federally declared disasters

CHDO Set-Aside

At least 15% of HOME funds must be reserved for housing developed, owned, or sponsored by qualified nonprofit organizations designated as Community Housing Development Organizations (CHDOs)

Affordability Periods

HOME-assisted housing must remain affordable for minimum periods based on the activity and amount of subsidy:

• Rental housing (new construction): up to 20 years
• Homeownership and rehabilitation: 5 to 15 years

Tenant-Based Rental Assistance (TBRA)

HOME funds may be used to provide tenant-based rental assistance to eligible households, helping residents afford housing in the private market.

Assistance may include:

• Monthly rental assistance
• Security deposit assistance

TBRA is administered in accordance with HOME program regulations and applicable state and County guidelines.

Community Housing Development Organizations (CHDOs)

CHDOs are qualified nonprofit organizations that play a key role in the HOME program.

The County:

• Works with HHFDC to support CHDO-eligible activities
• Ensures that required CHDO set-aside funds are utilized appropriately
• May support capacity-building efforts for nonprofit housing partners

Long-Term Affordability and Compliance

The County monitors HOME-assisted projects to ensure compliance with:

• Income eligibility requirements
• Rent limitations
• Property standards
• Affordability periods

These requirements help ensure that HOME-funded housing remains affordable and continues to benefit the community over time.

Eligible Activities/Costs (92.205)

The applicant should consult the federal regulations 24 CFR 92.205-215 for guidance on eligible and prohibited activities.

The major categories for the eligible costs are:

• Development hard costs defined as the actual cost of constructing or rehabilitating housing;
• The cost to refinance existing debt secured by housing that is being rehabilitated with HOME funds;
• Cost of acquiring improved or unimproved real property, including acquisition by homebuyer;
• Related soft costs defined as other reasonable and necessary costs incurred by the owner and associated with the financing or development (or both) of new construction, rehabilitation, or acquisition of housing assisted with HOME funds;
• CHDO project specific assistance under Section 92.301
• Relocation costs defined as costs of relocation payments and other relocation assistance to persons displaced by the project;
• Costs related to payment of loans. If HOME funds are not used to directly pay a cost specified in this section, but are used to pay off a construction loan, bridge financing, or guaranteed loan, the payment of principal and interest for such loan is an eligible cost if the loan was used for eligible costs specified in 92.206 and the HOME assistance is part of the original financing for the project and the project meets the requirement.
• Tenant-based rental assistance, such as rental assistance payments and security deposit payments made to provide tenant-based rental assistance for a family

Eligibility of the Applicants

Eligible Applicants include:

• Public Agencies
• Private Non-profit agencies
• Government agencies
• Developers
• Owners
• Community Housing Development Organizations (CHDO)

Eligible Activities: General

HOME funds may be used by a participating jurisdiction to provide incentives to develop and support *affordable rental housing and homeownership affordability through the acquisition (including assistance to homebuyers), new construction, reconstruction, or rehabilitation of non-luxury housing with suitable amenities, including real property acquisition, site improvements, conversion, demolition, and other expenses, including financing costs, relocation expenses of any displaced persons, families, businesses, or organizations; to provide tenant-based rental assistance, including security deposits; to provide payment of reasonable administrative and planning costs; and to provide for the payment of operating expenses of community housing development organizations. The housing must be permanent or transitional housing. The specific eligible costs for these activities are set forth in §§ 92.206 through 92.209. The activities and costs are eligible only if the housing meets the property standards in § 92.251 upon project completion.

*HOME-assisted rental housing must comply with certain rent limitations. HOME rent limits are published each year by HUD. The program also establishes maximum per unit subsidy limits and homeownership value limits.

**Some special conditions apply to the use of HOME funds. PJs must match every dollar of HOME funds used (except for administrative costs and CHDO predevelopment loans for projects that do not move forward) with 25 cents from nonfederal sources, which may include donated materials or labor, the value of donated property, proceeds from bond financing, and other resources. The match requirement may be reduced if the PJ is distressed or has suffered a Presidentially declared disaster. In addition, PJs must reserve at least 15 percent of their allocations to fund housing to be owned, developed, or sponsored by experienced, community-driven nonprofit groups designated as Community Housing Development Organizations (CHDOs). PJs must ensure that HOME-funded housing units remain affordable in the long term (20 years for new construction of rental housing; 5-15 years for construction of homeownership housing and housing rehabilitation, depending on the amount of HOME subsidy). PJs have two years to commit funds (including reserving funds for CHDOs) and five years to spend funds.

Forms of Assistance

HOME funds may be used as equity investments, interest-bearing loans or advances, non-interest bearing loans or advances, interest subsidies consistent with the purposes of this part, deferred payment loans, grants, or other forms of assistance as approved by HUD/HHFDC. HOME funds may be used to guarantee loans made by lenders. The amount of the loan guarantee account must be based on a reasonable estimate of the default rate on the guaranteed loans, but under no circumstances may the amount on deposit exceed 20% of the total outstanding principal amount guaranteed, 2021 HOME Proposal 7 c/5-8-20 except that the account may include a reasonable minimum balance. While loan funds guaranteed with HOME funds are subject to all HOME requirements, funds which are used to repay guaranteed loans are not.

Prohibited Activities (92.214)

HOME funds may not be used to:

• Provide project reserve accounts, except as provided in Section 92.206(d)(5), or operating subsidies;
• Provide tenant-based rental assistance for the special purposes of the existing Section 8 Program, in accordance with Section 212(d) of the Act;
• Provide non-federal matching contributions required under any other federal program;
• Provide assistance authorized under section 9 of the 1937 Act (annual contributions for operation of public housing);
• Carry out activities authorized under 24 CFR Part 968 (Public Housing Modernization);
• Provide assistance to eligible low-income housing under 24 CFR Part 248 (Prepayment of Low-Income Housing Mortgages); except that assistance may be provided to priority purchasers as defined in 24 CFR 248.101;
• Provide assistance (other than tenant-based rental assistance or assistance to homebuyers to acquire housing previously assisted with HOME funds) to a project previously assisted with HOME funds during the period of affordability established by the County. However, additional HOME funds may be committed to a project up to one year after project completion (see 92.502) but the amount of HOME funds in the project may not exceed the maximum per unit subsidy amount established under 92.250
• Pay for the acquisition of property owned by the State of Hawaiʻi/County of Hawaiʻi, except for property acquired by the State/County with HOME funds, or property acquired in anticipation of carrying out a HOME project;
• Pay delinquent taxes, fees or charges on properties to be assisted with HOME funds and;
• Pay for any cost that is not eligible under 92.206-209.

This is not intended to be an inclusive list. Refer to the Federal Register 24 CFR 92.205-215 for guidance on eligible and prohibited activities.

Compliance with Applicable State and Federal Regulations

Recipients and sub-recipients selected to receive HOME funds for eligible projects will be required, if applicable, to certify, provide documentation and assure that it will comply with the following regulations, policies, guidelines, and requirements with respect to the acceptance and use of federal funds.

Home Program Resources

• FAQs
• HOME Facts
• Maximum Per Unit Subsidy Limits
• HOME Rent Limits
• Homeownership Value Limits
• Income Limits
• Laws & Regulations

Consolidated Plan and Annual Action Plan

2025-2029 Consolidated Plan

The County’s Consolidated Plan (Con Plan) is a five-year strategic plan that addresses the County’s housing and community development needs and Federal funding priorities. The Con Plan ensures that jurisdictions receiving federal assistance adequately utilizes and develops a plan for it housing and community development related needs of very low-, low-, and moderate-income families in a way that improves the availability and affordability of decent, safe and sanitary housing in a suitable living environment as well as expands economic opportunities.

In addition to serving as a strategic plan for the County’s priorities and objectives for its HUD programs, the Con Plan is also used as a decision-making tool for the County and to measure the County’s annual accomplishments of its Con Plan’s objectives by HUD. As such, projects seeking CDBG funding must be consistent with the Con Plan and address a priority housing or community development need as well as fulfill a housing or community development goal as outlined in the Con Plan.

The Con Plan was drafted with extensive community input through public hearings and consultation with the Hawaiʻi County Housing Agency, community organizations and government agencies, and by public survey and studies.

2026 Annual Action Plan

The County is required to submit an Annual Action Plan (AAP) for HUD’s approval that serves as the County’s annual planning document. The AAP addresses the specific activities/projects the County will undertake during the program year to meet the Con Plan objectives with the anticipated annual CDBG fund allocation.

The activities/projects that the County proposes to finance in the AAP are selected in accordance with the County’s Project Evaluation and Rating System. This process involves the rating and ranking of each activity/project by an evaluation committee coordinated by the Office of Housing and Community Development. The evaluation committee submits its recommendation to the Mayor for approval and upon its approval, the AAP is drafted and made available for public comment. A Resolution to authorize the Mayor to enter into an agreement with HUD, along with the AAP with the approved activities/projects. is presented to the Hawaiʻi County Council for adoption. Upon adoption by the Council, the AAP is submitted to HUD for approval by the May 15th deadline.

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