HOME funds are awarded annually through a competitive application process to cities, counties and non-profit organizations outside the local participating jurisdictions.  Community Housing Development Organizations (CHDOS) are eligible to apply for State HOME funds only if the proposed project is outside most HOME participating jurisdictions.  THDA anticipates an allocation of $15-$17 million in Fiscal Year 2009.

ELIGIBLE APPICANTS
Applicants with previous HOME grants must meet draw down requirements by February 27, 2009 to be eligible to apply.  Applicants with 2008 HOME grants must have requested at least 25% of their grant; applicants with 2007 HOME grants must have requested at least 50% of their grant; applicants with 2006 HOME grants must have requested 75% of their grant; and applicants with 1992 through 2005 HOME funds must be 100% drawn down.

GRANT AMOUNT
The maximum HOME grant is $500,000.  Applicants must apply for at least $100,000.  There is a $750,000 maximum that can be awarded to any one county if there are multiple grant applications from that county.

HIGHLIGHTS FOR 2009
All of the changes or clarifications for the 2009 HOME program are in homeownership activities:

• For CHDOs, HOME funds are to be used as the primary method of financing the development of single-family units either through new construction or acquisition and substantial rehabilitation of a substandard unit.
• Front and back end ratios may not exceed thirty-five percent (35%) and forty-five percent (45%), respectively.  Lower rates are encouraged.
• THDA expects the use of THDA mortgages whenever suitable.
• The homebuyers must make a contribution from their own funds equal to one percent (1%) of the purchase price of the property.  This requirement will be waived for special needs homebuyers working with non-profit agencies funded for downpayment assistance under the Special Needs Set-aside.
• All homebuyers must complete a homebuyer education program from a THDA qualified homebuyer education counselor prior to purchase.
• Grantees are expected to not only shepherd the homebuyer through the home buying process, but also work toward fostering an on-going relationship with the homebuyer.  This includes facilitating additional homeowner counseling, verifying homeowner occupancy requirements on an annual basis, and monitoring mortgage default issues.

For more information, you may contact Coralee Holloway, Director of Community Programs at (615) 815-2030.