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MortgagePoint » Your Trusted Source for Mortgage Banking and Servicing News 60 February 2025 J O U R N A L tions that receive annual HOME grant funding. The HOME final rule streamlines program requirements for states and localities, better aligns HOME funding with other federal housing resources, reduces the administrative burden for communities and housing developers, improves assistance and protections for renters, strengthens the use of HOME for homeownership activities, and encourages energy efficient and green building practices. "These new rules build on HUD's commitment to reducing the red tape and making programs easier to use," said the Honorable Adrianne Todman, HUD Agency Head. "For more than 30 years, HOME has provided funding to build new homes, assist home buyers, and provide rental assistance. HOME funding plays a critical role in advanc- ing housing opportunities for families across the country." Finding Success in the HOME Program Since the creation of the program in 1992, more than 1.38 million homes have been completed through HOME fund- ing. The HOME program is a critical tool to bolster housing production and preserve existing affordable housing at a time of dire need nationwide, and the regulatory improvements will ensure funding is effectively and efficiently deployed to boost housing supply and lower costs for families nationwide. Updates to the HOME regulations will strengthen the program for years to come. HUD's final rule will: • Reduce unnecessary burden on grantees and beneficiaries by streamlining income determina- tions; • Simplify HOME rental housing requirements, making it easier to use HOME for small rental housing projects; • Better align HOME with LIHTC and other federal funding; • Simplifying tenant-based rental assistance (TBRA) and making HOME TBRA work better for ten- ants, landlords, and participating jurisdictions; • Strengthening tenants' rights and protections for occupants of HOME-assisted rental units and recipients of HOME tenant-based rental assistance; • Modernize and simplify require- ments for homeownership activi- ties; • Establish a new method for deter- mining maximum per unit subsidy limits; • Incentivize green building and en- ergy-efficient building practices to lower energy costs for families and save money for residents; • Making HOME easier to use to increase the supply of housing by addressing pre-development costs; and, • Expand the availability and capac- ity of community developers by updating guidance for Community Housing Development Organiza- tions and Community Land Trusts. Streamlining HUD's Functions HUD's updates will improve the ability of participating jurisdictions who receive HOME to implement funding more effectively and efficiently making it easier for States and localities to use HOME to support renters, home- owners, and homebuyers. HUD's rule will reduce the administrative burden by aligning utility allowances with oth- er HUD programs, reducing duplicative inspections by accepting NSPIRE per- formed for other funding sources, and reducing the administrative burden of performing income determinations by accepting determinations performed for other funding sources. The rule also incentivizes the use of HOME funds for small rental projects such as accessory dwelling units and duplexes by reduc- ing the frequency of inspections and income determinations and eliminating arduous waiting list requirements for small properties. HUD's rule will also simplify requirements for homeownership activities. The update also addresses common challenges in homebuyer activities by extending sales deadlines for HOME-assisted units, adding clarity for resale provisions, and allowing for rehabilitation of HOME-assisted prop- erties after acquisition. The changes to HOME tenant- based rental assistance will support low-income renters by creating a man- datory lease addendum with enhanced tenant protections, better defining causes for eviction in the HOME program, and reducing burdensome paperwork for tenants. "The final rule ref lects insightful comments offered by multiple stake- holders, whether someone is the pro- spective resident of a new home, owner of an existing property renovated, with HOME dollars, a developer or operator of affordable rental housing, or a civil servant administering the grant pro- gram, these changes will simplify the use of grant funding," Principal Deputy Assistant Secretary for Community Planning and Development Marion McFadden said. "I'm also pleased that new regulations will incentivize build- ing energy efficient homes, resilient to weather-related disasters." HUD's update will also expand op- portunities for nonprofit organizations and developers to access HOME fund- ing to create and retain renter or home- owner housing in their neighborhoods by revising requirements for communi- ty housing development organizations and community land trusts. It will also provide incentives for energy efficiency and green building standards, expected to result in lower utility and insurance costs for homeowners.