Homeowner Rehabilitation Programs

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HOME funds can be used to assist low-income homeowners in the rehabilitation of their homes. Such HOME assistance can meet a critical need for homeowners who lack the funds to make necessary physical improvements to their homes.

Rehabilitation assistance can be used to make essential improvements, bring houses up to physical codes, as well as improve energy efficiency and handicapped accessibility. Activities of this type serve to improve the living conditions of individual households and help avoid neighborhood blight.

The HOME Program does not require affordability periods with rehabilitation assistance to homeowners. However, PJs may choose to impose such requirements at their discretion.

When administering a HOME-funded homeowner rehabilitation program, HOME Program rules require that specific requirements be met in the following areas:

	Eligible activities. For homeowner rehabilitation programs using HOME funds, eligible activities include the rehabilitation or reconstruction of homes in order to meet property standards.
	Eligible forms of assistance. PJs may structure HOME assistance for homeowner rehabilitation programs using any of the forms of HOME assistance listed in the discussion of Subsidies.
	Eligible costs. The HOME Program allows hard and soft costs as well as refinancing for homeowner rehabilitation activities. Click on Eligible Costs for a list.
	Eligible property types. The following property types may be assisted through a homeowner rehabilitation program; single family housing, condominium housing, a cooperative unit, or manufactured home.
	Property values. The value of the HOME-assisted property after rehabilitation must not exceed 95 percent of the median purchase price for the area.
	Property standards. Properties that are rehabilitated with HOME funds must meet certain standards. To review these standards, click on the HOME Property Standards link.
	Eligible applicants and beneficiaries. To be eligible for homeowner rehabilitation under the HOME Program, a homeowner must be low income, must own the home, and the property to be rehabilitated must serve as the owner's principal residence.
	Other Federal requirements. Chapter 4 of HUD's HOME training manual Building HOME: A HOME Program Primer provides detailed information about each of the requirements described in this table.