From Rental Rehab to the HOME Program - Making the Transition

Copies of Model Programs are available through Community Connections (

HUD-1370-CPD, January 1993

This guidebook describes how the HOME Program can be used to help localities increase homeownership opportunities for low-income households.

In particular, it focuses on assisting States, local governments, and nonprofit agencies in establishing first-time homebuyer programs under HOME.

It discusses the benefits of homeownership, the barriers low-income families face in becoming homeowners, and the HOME Program's first-time homebuyer eligibility requirements.

It also provides important information about program design, including the key components of a first-time homebuyer program, possible methods of efficiently financing such programs, and methods of complying with the unique resale provisions of the HOME program.

Although the HOME statute has been altered to eliminate the "first-time" homebuyer requirement and expanded to include recapture of the HOME subsidy during the affordability period, this guide provides an excellent discussion of how to structure resale provisions. HOME subsidy assistance may take different forms.

The form chosen for any particular homeowner or program will depend upon the characteristics and needs of the purchasers, the interests of the participating lending institutions, and the capabilities and resources of the participating jurisdiction.

This guide discusses different forms of subsidy that are possible under the HOME program, such as direct loans, subsidies to private lenders, gap financing, and the donation or discount of land or property.

Finally, this guidebook uses case studies to discuss how three participating jurisdictions assisted families in different housing markets.

These model programs may prove helpful to participating jurisdictions in deciding how to design their own programs for first-time homebuyers.

Content Archived: May 20, 2011