Members of the Preservation Working Group, including LeadingAge, recently applauded the Department of Housing and Urban Development’s proposal to update program rules for the HOME Investment Partnerships Program.
HOME is the largest federal block grant to state and local governments designed exclusively to create affordable housing for low-income households.
The proposed rule, published May 29, “seeks to reduce burden and increase flexibility for participating jurisdictions and other program participants,” according to HUD. Comments on the proposal were accepted through July 29.
In a July 26 letter to HUD that LeadingAge helped develop, the coalition identified as a priority for the HOME program changes to a definition of “troubled properties.” The new definition, the group said, would allow additional flexibility to preserve the affordability of a housing project not found in the 2013 final rule. “In the past, the program focused on financial viability alone without allowing for preservation based on the physical condition of housing units at risk of failure or foreclosure,” according to the PWG.
“In the proposed rule, HUD clarifies that it may consider the financial viability or the physical condition of the housing when preserving HOME-assisted units at risk of failure or foreclosure,” the letter stated. “We appreciate the growing recognition that changes to physical characteristics may substantially impact the preservation of a project, including deferred maintenance due to unanticipated financial limitations, or unforeseen capital needs.”
Additionally, the PWG applauded changes that allow higher maximum per-unit subsidy limits, as well as changes to Community Housing Development Organizations related to designations and project requirements.
“The increased subsidy can help defer upfront costs of upgrades that support sustainability and preservation,” the letter said.
