HUD's FY 99 Budget
Key Programs and Initiatives: Home Bank and Home Grants

HOME Bank (Loans)

President Clinton's proposed new HOME Bank loan guarantee program builds on the highly successful HOME program by allowing local jurisdictions to finance large rental or homeownership developments. HUD will insure loans made to localities, enabling them to leverage up to five times their current HOME grant allocation�up to $100 million in loans nationwide. The $100 million in loan authority, together with the leveraged funds, is expected to stimulate the construction or rehabilitation of approximately 6,000 to 9,000 single family homes and multifamily rental units.

HOME Investment Partnerships Program (Grants)

The proposed $50 million funding increase for HOME grants will boost the total funding for the grants to $1.55 billion. This funding will produce substantial amounts of housing: 78,250 units of affordable housing for owners and renters through construction, rehabilitation and acquisition activities. In addition, 11,200 families will receive tenant-based rental assistance.

The HOME Investment Partnerships Program has established a solid foundation for this new initiative and has proved its effectiveness in community revitalization by making possible -- as of September 30, 1997 -- the construction, purchase, or rehabilitation of housing for 280,000 families and individuals, in addition to helping more than 36,000 families with tenant-based rental assistance.