HOME was enacted under Title II (42 USC 12701-12839) of the Cranston-Gonzales National Affordable Housing Act (Pub. L. 101-625, approved November 28, 1990).
There are five general purposes of HOME programs:
- Expanding the supply of decent, safe, sanitary and affordable housing.
- Expanding the capacity of nonprofit Community Housing Development Organizations (CHDOs) to develop and manage affordable housing.
- Leveraging federal housing assistance funds with State and local matching contributions and private investment.
- Promoting the development of public-private partnerships to utilize effectively all available resources to provide affordable housing.
- Helping low- and very-low-income families develop the skills and knowledge necessary to become responsible tenants and homeowners.
More specifically, HOME funds can provide incentives for the acquisition, rehabilitation or construction of affordable rental and ownership housing. Funds can also be used for tenant-based rental assistance.