HUD recently announced that it is proposing new regulatory requirements under its HOME Investment Partnerships Program (HOME) that would re-write some of HOME’s compliance requirements. HUD’s proposed rule would:

  • Require state and local governments to adopt policies and procedures to improve their oversight of projects, develop a system for assessing the relative risk of projects, and more closely monitor their HOME-funded sub-recipients;
  • Require state and local governments to assess a developer’s capacity and the long-term viability of the project, before they commit HOME funds to a project;
  • Require more frequent reporting by state and local “˜participating jurisdictions’ to enable HUD to more closely track projects once they’re under way; and
  • Set a higher “˜performance bar’ by establishing specific timeframes for taking appropriate corrective actions against participating jurisdictions who fail to complete what they started.

In addition, HUD is in the process of improving the Integrated Disbursement and Information System (IDIS), the primary data collection and reporting mechanism for tracking the commitment of HOME funds. The HOME program is an essential source of gap financing for nearly all multifamily affordable housing properties financed by the Low-Income Housing Tax Credit.

To read the notice click here.