What is the HOME Investment Partnership Program?

Woodmansee South neighborhoodThe City of Salem partners with several non-profits and community partners to utilize the HOME program to provide affordable housing to residents. The City does not offer direct support to individual residents, but can refer residents to an appropriate community partner.

The HOME Program was created by the National Affordable Housing Act of 1990 (NAHA) and provides formula grants that communities use (often in partnership with local nonprofit groups) to fund a wide range of activities including building, buying, and/or rehabilitating affordable housing for rent, homeownership, or providing direct rental assistance to low-income people.

The primary objectives of the HOME program are to:

  • Provide decent safe affordable housing to lower income households
  • Expand the capacity of nonprofit housing providers
  • Strengthen the ability of state and local governments to provide housing
  • Leverage partnerships

Eligible Activities a Community Partner Can Get a Grant For

Interior home remodelGrant activities can be divided into four general categories.

Homebuyer Activities

Eligible Costs for homebuyer activities include:

  • Acquisition
  • Rehabilitation

Forms of Assistance typically include:

  • Grants
  • Deferred-payment loans
  • Below-market rate loans

Program Designs vary according to the needs of a community, but some standard designs include:

  • Down payment and closing cost assistance
  • Gap financing
  • Development subsidy

Additional Requirements

  • Subsidy layering
  • Eligible property types
  • Property standards
  • Eligible applicant/ beneficiary
  • Affordability period and monitoring

Homeowner Rehabilitation

Eligible Costs for homeowner rehabilitation activities include:

  • Hard costs
  • Project related soft costs

Forms of Assistance typically include:

  • Grants
  • Deferred-payment loans
  • Non-interest bearing loans
  • Interest bearing loans

Rental Housing Activities

Eligible Costs for rental housing activities include:

  • New construction
  • Rehabilitation or reconstruction
  • Conversion
  • Site improvements
  • Acquisition of property or vacant land
  • Demolition
  • Relocation costs
  • Refinancing
  • Capitalization of project reserves
  • Project-related soft costs

Tenant-Based Rental Assistance (TBRA)

Eligible Costs for homebuyer activities include:

  • Rental assistance programs
  • Voucher or certificate model
  • Security deposit programs

Additional Requirements

  • Eligible applicant/ beneficiary
  • Eligible TBRA units
  • Property standards

The list of current HOME grant recipients and their grant amounts can be found on page 281 of Budget Book 1 in the City's annual budget.