HOME Investment Partnerships Program (HOME)

The City of Boise receives an annual allocation of HOME Investment Partnerships Program (HOME) funds from the U.S. Department of Housing and Urban Development (HUD). This HOME block grant provides funding to states and local governments to address housing needs by creating and maintaining the supply of safe, sanitary, decent, and affordable housing for low-income households.

Funding

Based on the availability of HOME funds, the City periodically opens competitive applications for funding. Each application is announced through a Notice of Funding Opportunity (NOFO), which outlines the primary requirements for project proposals, including funding limits, loan terms, affordability minimums, target population preferences, City priorities, and application scoring metrics. A NOFO is accompanied by corresponding Program Guidelines that should be reviewed thoroughly prior to submission of an application for funding.

HOME Multifamily Development Program Guidelines

HOME funds serve as gap financing to developers in the form of loans. Beyond any limits established by the City, HUD imposes limits on the amount of HOME funds that can go into any given project, known as per unit subsidy limits, which are updated annually by HUD and included in any NOFO published by the City. All HOME-assisted housing must meet program requirements during a period of affordability (POA), which ranges from five to twenty years depending on the type of activity and amount of HOME funds. In an effort to meet and sustain the demand for affordable housing, the City imposes an extended commitment period of 30 years beyond the HOME POA. This combined period is referred to as the total performance period.

HOME funds may be used to reimburse a variety of eligible costs during the pre-development and construction phases of a project within the limitations of HOME regulations and those imposed by the City. Eligible HOME project costs can be viewed here.

Applications

Who Can Apply

Non-profit and for-profit developers are eligible to apply for HOME funds. Developers must demonstrate the ability and capacity to finance, develop, and maintain a project that adheres to all HOME program regulations and City requirements for the duration of the total performance period.

Funding Opportunities

Underwriting and Due Diligence

Applicants are required to submit a proforma and numerous supporting documents to show that the project has the initial funding and ongoing income to support the project, including ongoing maintenance needs over the course of the HOME POA. Projects undergo a comprehensive underwriting process to review the project’s strength and financial viability and to confirm various limits and requirements around unit type/mix, income and rent limits, level of HOME subsidy, etc. This process may require the submission of additional documentation.

Projects that do not meet underwriting and due diligence criteria or secure other fund sources will not receive a commitment of HOME funds.

Proforma excel form

Certifications and Disclosures

The developer team must disclose any identity of interest and lobbying activities or certify that none exist or have taken place.

What to Expect During Project Construction

Once a written agreement has been executed, the developer team can expect to be in contact with City staff regularly regarding fund requests (draws), project status, labor hours, and other documentation and reporting required during the project. Federally funded projects must adhere to local and state codes and laws, as well as HUD/HOME requirements and federal cross-cutting regulations.

Accessing funds

Funds are provided on a reimbursement basis. Draw requests are submitted in Neighborly on a template provided by the City and must include all required supporting documentation. A retainage of 5% of funds is held until projects are completed and all required documentation/reporting has been submitted and approved by the City.

Procurement and Labor

There are several laws and regulations that apply to outreach to workers, hiring of workers, wages, and debarment, each of which requires documentation and/or reporting throughout a project’s construction period.

• Section 3: economic opportunities for low-income residents and businesses
• MBE/WBE: outreach and opportunities for women and minority owned businesses
• Davis Bacon: prevailing wage requirements (as applicable)
• Debarment/Suspension of developers or contractors/subcontractors as verified via Sam.gov

City of Boise Procurement and Labor Standards Policy coming soon.

Housing Standards

Several laws and regulations apply to the physical housing units, common spaces, and leasing offices, as well as to housing programs and services, property management agencies, tenant selection plans, etc.

• Physical Standards: local and state building/fire codes, HUD lead-based paint regulations
• Fair Housing and accessibility requirements: Equal Opportunity in Housing, Fair Housing Act, Title VI Civil Rights Act, 504 Rehabilitation Act, Americans with Disabilities Act, Equal Employment Opportunity Act, etc.

Section 504 Guide & Self-Evaluation

Leasing Period

Prior to units being leased and the project being considered ‘completed’ by the City, several steps must take place, including documentation and reporting review/approval and physical inspections.

• Affirmative marketing
• Unit inspections
• Tenant income verification
• Rent review
• Utility allowance review

Affirmative Fair Housing Marketing Plan template (Multifamily Housing: Form HUD-935.2A)