HOME Investment Partnership Program

• Report this change to AHC and complete the Notification of Change in Owner/Management Contact Information. This form is used only to convey change of contact information. If there is an ownership change (i.e. sale of property), please contact AHC for additional information.
• Review the HOME Agreement and the Declaration of Covenants (or similar agreement) to become familiar with the HOME requirements of the property.
• Prepare a management plan that incorporates HOME compliance policies and procedures, and required documents and forms.
• If staff involved with applicant intake, leasing, property management and reporting are not already familiar with HOME requirements, sign up for training to avoid noncompliance.

Under the HOME program, a tenant’s annual income is calculated according to the method used to determine gross annual income for HUD’s Section 8 Program. This method differs from the way a household’s income is calculated for tax purposes. Owners/managers should refer to HUD Handbook 4350.3: Occupancy Requirements of Subsidized Multifamily Housing Programs, focusing on Chapters 3 and 5. Another excellent resource is the Technical Guide for Determining Income and Allowances for the HOME Program. As always, contact AHC for additional guidance and training opportunities.

A HOME unit is a unit that is occupied by an income eligible household with a compliant gross rent and meets the student status requirements. An income eligible household is one whose annual income is at or below the HUD established income limit for that household size. Compliant gross rent is the unit rent, plus an allowance for utilities and any non-optional charges that is at or below the HUD established rent for the unit size. A qualifying unit must also meet the Uniform Physical Conditions Standards (UPCS). In addition to income and rent compliance, the lease and any lease addenda must be executed and compliant with the HOME program.

Owners/managers are required to anticipate the amount of income a household will receive during the coming 12-month period. Generally, this amount is calculated by estimating the family’s annual income using current income and assets. However, if changes from current circumstances can be verified (e.g., an approved raise, an expected bonus, a change in the number of overtime hours to be worked) these should also be considered in anticipating annual income.

Under HOME, there is no limitation on the amount of assets an eligible household can own. But, anticipated income from assets must be included in the calculation of annual income. Section 8 program rules specify the types of assets to be considered. Unlike LIHTC, where a household can self-certify to assets if total assets amount to less than $5000, HOME requires third party verification of assets, regardless of total amount.

Third-party written verifications, or Verification of Employment (VOE) are preferred. A VOE is one that is sent directly to the employer, with the written release (approval) of the employee (your applicant/tenant). If a VOE is not possible, then first-hand documentation such as paystubs, are acceptable. However, in cases where either of these methods are not feasible, telephone verifications may be used as long as management staff complete, sign, and date a form that identifies the third party oral source. In some instances, an applicant/tenant can self-certify. If uncertain, call AHC!