HOME Program Overview

The Home Investment Partnerships Program (HOME) Program is a federal block grant program directed by the U.S. Department of Housing and Urban Development (HUD) and is designed to create affordable housing for low-income households. The Montana Department of Commerce is responsible for the administration of HOME within the state of Montana. Commerce provides HOME funds to units of local government (counties and incorporated cities and towns) and non-profits throughout the state. An individual may not apply directly to the state HOME Program.

The purposes of the HOME Program include expanding the supply of affordable housing for low- and very low-income persons; improving the means of state and local governments to implement strategies to achieve adequate supplies of decent, affordable housing; and providing both financial and technical assistance to participants to develop model programs for affordable, low-income housing.


 

The HOME Investment Partnerships Program (HOME) is the largest federal block grant designed exclusively to create affordable housing for low-income households and was created under Title II of the National Affordable Housing Act of 1990. Montana’s State allocation of HOME funds is provided by HUD, and the Montana Department of Commerce grants these funds to local governments, non-profit developers including Community Housing Development Organizations (CHDOs), and public housing authorities for the development and preservation of affordable housing for income-eligible individuals and families.

The objectives of the HOME Program are as follows:

  • Expand the supply of decent, safe, sanitary, and affordable housing for very low-income and low-income Montanans (i.e., those at or below 60% and 80% of area median income, respectively); and
  • Mobilize and strengthening the abilities of units of local governments, public housing authorities, CHDOs, and other organizations to implement strategies for achieving an adequate supply of decent, safe, sanitary, and affordable housing.

Eligible Projects

Homebuyer Assistance Activities

HOME funds may be used to support homeownership affordability through the acquisition of non-luxury housing with suitable amenities. Homebuyer assistance activities are expressly limited to financial assistance provided to eligible beneficiaries (including downpayment and closing costs) and sufficiently documented costs that directly support homebuyer assistance activities for existing housing units or housing units under construction. HOME funds may be used to help eligible beneficiaries acquire, in fee simple title, a 1- to 4-unit dwelling or a condominium unit.

Housing Development Activities

HOME funds may be used to develop affordable rental and/or homeownership housing through the acquisition, new construction, reconstruction, or rehabilitation of non-luxury housing with suitable amenities. Activities may include real property acquisition, site improvements, new construction, rehabilitation, reconstruction, conversion, and other expenses including financing costs, temporary relocation expenses of any households, businesses, or organizations. Acquisition of vacant land or demolition must be undertaken only with respect to a particular, predefined housing project intended to provide affordable housing within established time frames.


Eligible Applicants

A local government may apply for HOME funds directly or sponsor an application on behalf of a non-profit. If awarded, the applicant (local government) remains responsible for meeting all HOME requirements, including those related to long-term affordability.

Counties may apply to use HOME funds for activities proposed to resolve housing problems in the unincorporated jurisdiction of the county. A county may apply for a housing project that will include activities within the jurisdiction of an incorporated city or town if the proposed project is intended to benefit all county residents. A county may apply for a grant to fund a project that would assist two or more separate, unincorporated communities.

Municipalities may apply to use HOME funds for projects proposed within the jurisdiction of the incorporated city or town. A municipality may apply for a project located outside the city's jurisdiction if it can provide assurances the project area will be annexed within the HOME contract period.

Consolidated city-county governments will be considered as two separate jurisdictions: one, the city jurisdiction; and two, the unincorporated jurisdiction of the county. Each may apply separately for HOME funds. The city and county boundaries, as delineated on the date of consolidation, will define the jurisdiction of each.

In addition to applying indirectly under the sponsorship of a local government, non-profits including CHDOs and public housing authorities may apply for HOME funds directly.

HOME Investment Partnerships Program and Housing Trust Fund Application Guidelines (PDF) (Word)
Applications for new proposals due September 15, 2021
Applications for previously awarded projects due September 30, 2021
Please see the Application Toolkit for additional documents

Uniform Application for Montana Housing Projects (click here)

 


Housing Development Projects

Commerce accepts applications for housing development annually, on or about September 15th. Grants are awarded to construct, acquire, and/or rehabilitate rental properties, or develop new units for homeownership. Awards are to fill financing gaps and may not exceed HUD-determined subsidy limits. Additionally, 5% of HOME investments must be matched. For more information, including an overview of ranking criteria and specific questions and required documents, see Application Guidelines (above).

Applications are evaluated according to ranking criteria and receive points for responses to each criterion. Successful applicants are awarded grants commensurate with demonstrated need, HUD’s subsidy limits, and availability of funds. Both successful and unsuccessful applicants are notified of funding decisions once they are made, and all applicants are provided an opportunity to meet with Commerce staff to discuss their applications and overall ranking outcomes with the aim of helping applicants identify areas for improvement and opportunities for future success.
 
Homebuyer Assistance Programs

Commerce accepts applications for homebuyer (downpayment) assistance programs on a rolling basis. Grants covering a 2-year period are awarded to eligible entities seeking to undertake homebuyer activities locally. Awards fund grantee's administrative costs as well as subsidies to individual homebuyers. Grantees determine maximum subsidies based on their local housing markets and targeted beneficiaries, and ensure that home purchase prices follow HUD-determined limits. Generally, HOME investments for individual activities are matched at a rate of 5%. For more information, including  an overview of ranking criteria and specific questions and required documents, see Application Guidelines (available upon request). 

Applications are evaluated according to ranking criteria and receive points for responses to each criterion. Successful applicants are awarded grants commensurate with demonstrated need and availability of funds. Both successful and unsuccessful applicants are notified of funding decisions once they are made, and all applicants are provided an opportunity to meet with Commerce staff to discuss their applications and overall ranking outcomes with the aim of helping applicants identify areas for improvement and opportunities for future success.


HOME Program Purchase Price Limits

2021 HOME Program Purchase Price Limits effective June 1, 2021 for Existing and Newly Constructed Homes are available on HUD's website.

Applicants Proposing to do Rehabilitation Activities

As of April 22, 2010 the U.S. Environmental Protection Agency's (EPA) Renovation, Repair, and Painting (RRP) Program Rule applies to paid renovators who work in pre-1978 housing and child-occupied facilities, including: renovation contractors, maintenance workers in multi-family housing, painters, and other specialty trades. Under the rule, child-occupied facilities are defined as residential, public, or commercial buildings where children under age six are present on a regular basis. Contractors are required to have a certified renovator on board for each job taking place in a home or facility defined by the rule.

There are some differences between the EPA RRP Rule and the HUD Lead Safe Housing Rule (LSHR). A major difference is that the LSHR requires clearance examinations. All housing receiving federal assistance must still comply with the LSHR. Read more about complying with the LSHR and RRP.

EPA-Authorized Lead Renovation, Repair, and Painting Courses are offered by the Montana Weatherization Training Center at MSU - Bozeman, the only EPA accredited training provider in Montana.

Projects involving structures built prior to 1980 are considered to have the potential for lead-based paint (LBP) and procedures have been developed to ensure compliance with federal regulations. If structures are being funded by CDBG, HOME, or HTF for rehabilitation, the units must be tested for LBP and if positive, the LBP must be removed during rehabilitation or prior to occupancy. CDBG-, HOME-, and HTF-assisted units constructed before 1980 must be tested for LBP using HUD Performance Characteristics Sheet Testing and applicable industry standards. All assisted units must be free of LBP prior to occupancy. For many projects, program funds can to be used to assist with the cost of LBP testing and remediation activities.

Grantees are required to document that proposed rehabilitation activities have been assessed for LBP or lead water service lines; that the applicant has the resources to ensure that certified LBP inspectors and contractors are available to accomplish the proposed activities; and that the cost and design of the proposed activity takes LBP removal and remediation into account. Applicants for CDBG, HOME, and HTF funding are required to certify that they accept all program requirements, including compliance with all state and federal LBP requirements and regulations.

Commerce requires that Preliminary Architectural Reports (PARs) funded with state or federal funding through the Department, or submitted in support of a grant application for any state or federal funding, meet the requirements of the Department’s PAR requirements. Among other things the requirements include describing all concerns, deficiencies, compliance issues, and relevant regulations related to LBP, evaluating the existence of LBP in any existing facilities, and describing all mitigation measures that will be implemented to remediate any LBP.

HUD Exchange - HOME Investment Partnerships Program (link)

  • Capital Needs Assessment Requirements (PDF)
  • Comparing CDBG v HOME v HTF (PDF)
  • Management Plan Template for City/County (Word)
  • Management Plan Template for Non-Profit (Word)
  • Market Analysis Requirements (PDF)
  • Preliminary Architectural Report Requirements (PDF)
  • Residential Anti-displacement and Relocation Assistance Plan (Word)
Grantees are responsible for carrying out project activities commensurate with the project application and ensuring compliance with all applicable state, federal, and local requirements. The Montana Department of Commerce (Commerce) is committed to assisting grantees with these responsibilities and seeks to provide uniform guidance through the Affordable Housing Development Grant Administration Manual along with published tools and resources (hereafter, Manual). The Manual details various state and federal requirements pertaining to the HOME Investment Partnerships Program (HOME) and Housing Trust Fund Program (HTF). It is designed to walk grant administrators through each step of a HOME-/HTF-assisted housing development project, from notice of grant award and start-up to procurement and project completion, and its organization mirrors the lifecycle of most projects.

In addition, Commerce staff are available to provide technical assistance. Please contact us if you have comments, questions, or need assistance.

Manual

HOME and HTF Affordable Housing Development Grant Administration Manual (Word) (PDF)

 


Tools and Resources

 

START-UP

Start-Up Requirements Checklist (Word) (PDF)

Project Budget

Budget Template (Word) (PDF)

Project Implementation Schedule

Implementation Schedule Template (Word) (PDF)

Firm Commitment of Other Funding Sources

Guidelines on Providing Acceptable Documentation of Non-HOME/-HTF Funding Sources (Word) (PDF)

Project Management Plan

Sample Project Management Plan (Word) (PDF)

Sample Subrecipient Agreement (Word) (PDF)

Environmental Review (HOME)

Sample Letter and Resolution Designating Environmental Certifying Official (Word) (PDF)

Part 58 Environmental Review Process and Resources (Word) (PDF)

HUD Resources for Complying with Related Laws and Authorities (Part 58)

Agency Contacts for Environmental Information and Notification Distribution (Word) (PDF)

HUD Form – Environmental Review for Activity/Project that is Categorically Excluded Subject to Section 58.5

HUD Form – Part 58 Environmental Assessment (EA)

Sample Tribal Consultation Letter (Word) (PDF)

Sample State Historic Preservation Office Letter (Word) (PDF)

Sample Letter and Resolution Showing Agreement by Local Government to Prepare Environmental Review on Behalf of a Non-Government Entity (Word) (PDF)

Environmental Review (HTF)

Suggested Format: New Construction – HTF Funds Only

Suggested Format: Rehabilitation – HTF Funds Only

Suggested Format: New Construction – HTF and Other HUD Funds

Suggested Format: Rehabilitation – HTF and Other HUD Funds

Sample Environmental Certification (Word) (PDF)

Civil Rights

Sample Fair Housing Policy Resolution (Word) (PDF)

Fair Housing Poster (Form HUD-928.1)

Sample Complaint Procedure Resolution and Complaint Form (ADA and Section 504) (Word) (PDF)

Sample Equal Employment Opportunity (EEO) Policy (Word) (PDF)

Equal Employment Opportunity (EEO) Poster

Establish Financial Accounting System

Electronic Funds Transfer (EFT) Sign Up Form (PDF)

Signature Certification Form (Word) (PDF)

Contract

Project Set Up and Completion Report – Multifamily Development (Word) (PDF)

Project Set Up and Completion Report – Single-Family Development (Word) (PDF)

 

PROJECT MANAGEMENT

Records Creation and Retention

Suggested Record Organization (Word) (PDF)

Uniform Relocation Act (URA)

Forthcoming

Procurement Procedures

Procurement Checklist (forthcoming)

Sample Request for Proposals (RFP) for Project Management Services (Word) (PDF)

Sample Request for Qualifications (RFQ) for Architectural Services (Word) (PDF)

HOME Supplemental Conditions (forthcoming)

HTF Supplemental Conditions (Word) (PDF)

Step-by-Step Guide to Procurement by Sealed Bid (Word) (PDF)

Step-by-Step Guide to Procurement by Competitive Request (Word) (PDF)

Sample Professional Services Contract (forthcoming)

Sample of a Consultant’s Invoice Meeting Commerce’s Requirements (Word) (PDF)

Construction

Pre-Construction Conference Planning Guide (forthcoming)

Pre-Construction Conference Attendance and Materials Receipt Verification Form (Word) (PDF)

Equal Employment Opportunity (EEO) Poster *Must be posted at construction site*

OSHA Job Safety and Health Poster *Must be posted at construction site*

SAM Quick Start Guide for New Grantee Registration

Volunteer Certification Form (Word) (PDF)

Labor Standards Resources (HOME Only) (Word) (PDF)

Financial Management

Budgetary Authority Resolution (Local Governments Only) (Word) (PDF)

HOME/HTF Request for Reimbursement Form *Required for reimbursement* (Excel)

Uniform Status of Funds Form *Required for reimbursement* (Excel)

Uniform Invoice Tracking Form *Required for reimbursement* (Excel)

Project Progress Report *Required for reimbursement* (Word) (PDF)

Contract and Employment Reporting Form *Required for reimbursement* (Excel)

Labor Standards Resources (HOME Only) *If applicable, documentation required for reimbursement* (Word) (PDF)

Other Requirements

Equal Employment Opportunity (EEO) Poster

Violence Against Women Act (VAWA)

Notice of Occupancy Rights Under VAWA (Form HUD 5380)

Certification of Domestic Violence, Dating Violence, Sexual Assault, or Stalking, and Alternate Documentation (Form HUD 5382)

Lease Addendum - Violence Against Women and Justice Department Reauthorization Act of 2005 (Form HUD 91067)

Model Emergency Transfer Plan for Victims of Domestic Violence, Dating Violence, Sexual Assault, or Stalking (Form HUD 5381)

Emergency Transfer Request for Certain Victims of Domestic Violence, Dating Violence, Sexual Assault, or Stalking (Form HUD 5383)

Request for Assistance Identifying Assisted, Available Units for External Emergency Transfers (Word) (PDF)

Marketing and Leasing

Multifamily Housing AFHMP (Form HUD Form HUD 935.2A)

Single Family Housing AFHMP (Form HUD 935.2B)

Sample Tenant Selection Policy (forthcoming)

Sample Application for Rental Housing (forthcoming)

Sample Lease (forthcoming)

HOME Lease Addendum

VAWA Lease Addendum (Form HUD 91067)

Project Completion

Project Set Up and Completion Report – Multifamily Development (Word) (PDF)

Project Set Up and Completion Report – Single-Family Development (Word) (PDF)

Certification of Completion and Status of Funds Report -AND- Conditional / Final Closeout Certification (Word) (PDF)

Project Completion Monitoring Checklist (forthcoming)

Housing Development (Period of Affordability) Annual Certification

Calendar Year 2021 Annual Certification for Rental Housing (Word) (PDF)  Due March 31, 2022

Calendar Year 2021 Rent and Occupancy Report (Excel)

Annual Certification Quick Guide (Word) (PDF)

Annual Certification 12-minute Webinar

Rent Schedule Form (Excel)

 

Homebuyer Assistance (Period of Affordability) Annual Certification

Homebuyer Assistance Annual Certification (Word) (PDF) 

Homebuyer Assistance Program Income / Recaptured Funds Quarterly Reporting Form (Excel) (PDF)

Homebuyer Assistance Program Income and/or Recaptured Funds Returned to MDOC Form (Word) (PDF)

 

Community Housing Development Organization (CHDO) Certification

CHDO Certification (Word)

CHDO Program Income / Recaptured Funds Quarterly Reporting Form (Excel) (PDF)

CHDO Program Income and/or Recaptured Funds Returned to MDOC Form (Word) (PDF)

 

Property Standards 

Housing Quality Standards (HQS) Inspection Checklist Form HUD-52580-A (long form) Form HUD-52580 (short form)

Uniform Physical Condition Standards (UPCS) Form (PDF)

 

HOME Income and Rent Limits

2021 HOME Income Limits Effective June 1, 2021

2021 HOME Rent Limits Effective June 1, 2021