The HOME Investment Partnership Program (HOME), funded by the US Department of Housing and Urban Development (US HUD), provides formula grants to states and localities to fund activities that build, buy, and/or rehabilitate affordable housing. Households with low incomes rent or purchase these homes; HOME may also provide families with direct rental assistance. Participating jurisdictions, or PJs, are required to match every dollar received with 25 cents in funding and determine how to allocate funds; they also often partner with local non-profits1, 2.
Expected Beneficial Outcomes (Rated)
Increased access to affordable housing
Increased access to quality housing
Other Potential Beneficial Outcomes
Increased neighborhood choice
Evidence of Effectiveness
The HOME Investment Partnership Program is a suggested strategy to increase access to affordable, quality housing for households with low incomes1, 2, 3. Available evidence suggests that HOME can increase homeownership, long-term affordability, and neighborhood choice for participating households4, 5. The HOME program may also generate and support jobs rehabilitating homes2. Additional evidence is needed to confirm effects.
When used to increase homeownership for households with low incomes, the HOME program can help reduce the racial wealth divide. A significant part of the racial wealth divide at all income levels relates to lower homeownership rates and lower home values for people of color6, 7, 8.
The HOME program can also provide direct rental assistance to families with low incomes. When implemented in this way, the program helps families relocate to safer neighborhoods and reduces their exposure to crime9, 10.
Potential to decrease disparities: Suggested by expert opinion
The HOME Investment Partnership Program is a suggested strategy to decrease disparities in access to affordable, quality housing between households with low incomes and those with higher incomes1, 2, 3. Experts suggest that additional funding for HOME is needed to expand program reach and provide access to quality, affordable housing for all eligible households18, 19, especially for communities of color facing extensive housing inequities that have been exacerbated during the COVID-19 pandemic19. To reduce disparities in housing access for renters with extremely low incomes, experts recommend removing time constraints on tenant-based rental assistance offered by HOME programs, allowing recipients to use the funds for longer term housing (i.e., beyond the current 24-month limit)18. HOME programs that provide additional services such as job and skills development trainings, foreclosure prevention services, counseling, legal aid, and food assistance may increase housing security and financial stability for participants with low incomes13, 16. In Aurora, IL, program data suggest that participation in the HOME program reduced homelessness among children and veterans16.
Discriminatory housing, lending, and exclusionary zoning policies in the era of Jim Crow and government-sanctioned segregation led to the redlining practices of the Federal Housing Administration and concentrated poverty. Redlining entrenched residential segregation, denying people of color access to government-insured mortgages and making the homes in the neighborhoods where they lived uninsurable8. The Fair Housing Act of 1968 was passed to reduce housing discrimination, but it has not stopped housing discrimination against people of color or helped rebuild the marginalized neighborhoods created by residential segregation19, 20. In the present day, formerly redlined neighborhoods remain more likely to include older homes in poorer condition, meaning homes that have energy inefficient systems; lead paint, soil, or pipes; mold and other allergens; repair needs; challenges with heating and cooling; and more. These neighborhoods are often near sources of pollution, toxins, and other health hazards, such as coal-fired power plants or hazardous waste disposal sites21.
The HOME Investment Partnership Program was established as part of the National Affordable Housing Act of 199022, 23 and is part of the federal government’s acknowledgement that safe, affordable, decent housing is not yet available to all Americans22, 23. As of 2021, approximately 1.3 million homes were built or preserved as part of the HOME program. More than 384,000 families with low or very low incomes benefited from HOME’s rental assistance, through $26.3 billion in direct HOME funds and $117 billion in additional public and private dollars. HOME program activities also created roughly 1.5 million jobs22.
- Does your local HOME Investment Partnership Program (HOME program) have partnerships with other organizations, including nonprofits and for-profits, with a vested interest in creating additional affordable housing? Are any of these organizations focused on improving access for families with low or very low incomes? Can the HOME program form partnerships with local US Department of Veterans Affairs (VA) organizations?
- How will the agency administering your HOME program raise funds to match a set proportion of their federally allocated HOME funds?
- What community priorities can be addressed with HOME funds? How will you assess if these goals are met?
- Does your HOME program provide additional support or services for participants such as job and skills development trainings, foreclosure prevention services, counseling, legal aid, and food assistance? Are additional resources available to integrate such services into your HOME program?
The HOME Investment Partnership Program is active in all 50 states1. Each state selects an agency to coordinate the program and manage funds from the US Department of Housing and Urban Development (US HUD); examples include the Colorado Department of Local Affairs, the Montana Department of Commerce, and the Kentucky Housing Corporation11, 12, 13. County level agencies, such as New Jersey’s Ocean County Department of Planning and Pennsylvania’s Montgomery County Department of Housing and Community Development, can also administer programs14, 15. Cities may also manage programs. The HOME program in Aurora, Illinois, part of the city’s Division of Neighborhood Redevelopment, for example, receives $750,000 annually from US HUD; in conjunction with the city’s Community Development Block Grant (CDBG) program, it funded urgent upgrades to 63 housing units16. The city of Melbourne, Florida maintains two housing programs with federal HOME funds, both the Homeowner Housing Rehabilitation Program and the Tenant Based Rental Assistance Program aid families with low and very low incomes17.
‡ Resources with a focus on equity.
US HUD-HOME resources‡ - US Department of Housing and Urban Development (US HUD), HUD Exchange. HOME Investment Partnerships Program resources page.
US HUD-HOME reports - US Department of Housing and Urban Development (US HUD), HUD Exchange. Frequently requested ad hoc HOME reports.
US HUD-203k - US Department of Housing and Urban Development (US HUD). 203(k) rehabilitation mortgage insurance.
NLIHC-HOME‡ - National Low Income Housing Coalition (NLIHC). HOME Investment Partnerships Program: An important resource for the development of low income housing.
LHS-COVID-19 response‡ - Local Housing Solutions (LHS). Housing issues: COVID-19. New York University, Furman Center and Abt Associates, Inc.
* Journal subscription may be required for access.
1 US HUD-HOME - US Department of Housing and Urban Development (US HUD). HOME Investment Partnerships Program.
2 Mickelson 2015 - Mickelson S. Building HOME: The HOME Investment Partnership Program's impact on America's families and communities. Enterprise Resource Center and the HOME Coalition. 2015.
3 US HUD-Herbert 2001 - Herbert C, Bonjorni J, Finkel M, et al. Study of the ongoing affordability of HOME program rents. Abt Associates, Inc. for US Department of Housing and Urban Development (US HUD). 2001.
4 US HUD-Turnham 2004 - Turnham J, Herbert C, Nolden S, Feins J, Bonjorni J. Study of homebuyer activity through the HOME Investment Partnerships Program. Washington, DC: US Department of Housing and Urban Development (US HUD); 2004.
5 US HUD-Carr 2008 - Carr K, Herbert C, Lam K, et al. Rates of foreclosure in HOME and ADDI Programs. US Department of Housing and Urban Development (US HUD). 2008.
6 PRRAC-Haberle 2021 - Haberle M, House S, eds. Racial justice in housing finance: A series on new directions. Washington, DC: Poverty & Race Research Action Council (PRRAC); 2021.
7 Urban-McCargo 2020 - McCargo A, Choi JH. Closing the gaps: Building black wealth through homeownership. Washington, DC: Urban Institute; 2020.
8 Kaplan 2007 - Kaplan J, Valls A. Housing discrimination as a basis for Black reparations. Public Affairs Quarterly. 2007;21(3):255-273.
9 CG-Housing vouchers - The Guide to Community Preventive Services (The Community Guide). Health Equity: Tenant-based housing voucher programs.
10 Anderson 2003 - Anderson LM, St. Charles J, Fullilove MT, et al. Providing affordable family housing and reducing residential segregation by income. American Journal of Preventive Medicine. 2003;24(3S):47-67.
11 CDOLA-HOME - Colorado Department of Local Affairs (CDOLA). HOME Investment Partnership Program.
12 MDOC-HOME - Montana Department of Commerce (MDOC): Montana Housing. HOME Investment Partnership Program.
13 KHC-HOME - Kentucky Housing Corporation (KHC). HOME Investment Partnerships (HOME) Program.
14 OCDP-HOME - Ocean County Department of Planning (OCDP). HOME Investment Partnership Program. Ocean County, New Jersey. Information on first-time homebuyers program, rental housing production through Community Housing Development Organizations (CHDOs), owner-occupied housing rehabilitation, and tenant-based rental assistance.
15 Montgomery PA-HOME - HOME Investment Partnership Program. Housing & Community Development, Department of Health and Human Services. Montgomery County, PA.
16 Aurora-HOME - City of Aurora, IL. HOME Investment Partnership Program.
17 Melbourne-HOME SHIP - City of Melbourne, Florida. Housing Programs: Homeowner Housing Rehabilitation Program, funded by the HOME Investment Partnership Program (HOME) and the State Housing Initiatives Partnership (SHIP) Program.
18 Mueller 2020 - Mueller EJ, Way HK, Wegmann J. Freefall: Why our housing safety net is failing the lowest-income renters during COVID-19. Journal of Affordable Housing. 2020;29(2):257-269.
19 Urban-Reynolds 2021 - Reynolds K, Lo L, Boshart A, Galvez MM. Federal reforms to strengthen housing stability, affordability, and choice. Washington, DC: Urban Institute; 2021.
20 AIC-HTF - All-In Cities, an Initiative of PolicyLink. All-In Cities Policy Toolkit: Housing trust funds (HTF).
21 Braveman 2022 - Braveman PA, Arkin E, Proctor D, Kauh T, Holm N. Systemic and structural racism: Definitions, examples, health damages, and approaches to dismantling. Health Affairs. 2022;41(2):171-178.
22 Fahe-HOME - Fahe Network: Strength in numbers. The HOME Investment Partnership Program offers families a down-payment on their American Dream.
23 US HUD-HOME guide - US Department of Housing and Urban Development (US HUD), Office of Community Planning and Development. The HOME program: An introductory guide to HOME, a new kind of affordable housing program. 1998.
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