Texas Department of Housing & Community Affairs - Building Homes and Strengthening Communities

HOME Frequently Asked Questions

What Non-Development Programs are Available?

Homeowner Rehabilitation Assistance - Provides funding for assisting low-income households that are owner-occupied.

Homebuyer Assistance - Provides funds to low-income homebuyers for downpayment and closing cost assistance. This program also provides funding for modifications to the home to make it accessible to Persons with Disabilities after the home is purchased.

Tenant-Based Rental Assistance - Provides funds to pay a rental subsidy based on the income of the Household, to low income households that are participating in a self sufficiency plan.

Contract for Deed Conversion - Provides funds to assist low income (at or below 60% AMFI) residents of colonias who currently hold a Contract for Deed. The Contract for Deed may be converted, using HOME funds, into a traditional mortgage, which allows the Household to build equity and realize true homeownership. There are additional funds available in this program to provide home rehabilitation or reconstruction if needed.


What is the difference between the Reservation System and a Contract Award?

Criteria Reservation System Contract Award
Funding Availability Available funding based on remaining communal pot during NOFA period. Funds may be moved into Reservation System to meet demand. Funds dedicated to a specific Administrator for a specific activity. The 2012 NOFA does not allow for Contract Award applications.
Flexible Funds Participant may provide any type of assistance (TBRA, HBA, HRA, or CFD) to their community on an as-needed basis. Funds are restricted to the activity that the contract is awarded for.
Application Abbreviated Application Process. Current Administrators may opt in without additional application submission. Comprehensive application process.
Match Match commitment may be provided with each individual reservation, or with every fourth reservation. Match commitment must be declared at time of application.
Households Served 25% of households served must be at or below 30% AMFI. No other targeting is required. Administrator must declare income levels of households to be served at the time of application.
Required Performance Benchmarks No Required Benchmarks. Reservations may be submitted as needed by the Administrator. Funds must be committed within 12 months


What is Match?

Match is the funding source that is provided by the Administrator (which are used for project hard or soft costs. Other federal funds (CDBG, CSBG, etc.) may not be used to match HOME funds. Common way to provide Match are fee and permit waivers, donated professional labor (architectural services, inspection services, etc.), donated use of equipment (backhoes, front loaders, trenchers, etc.), and donated demolition and site preparation services. The cash value of Match is reported to TDHCA. For the purposes of application, reasonable estimates for the amount and type of Match to be provided are acceptable.

To document Match commitment for application, please submit, along with the Uniform Application, an itemized schedule of the Match anticipated, and back up documentation, such as a schedule of the FEMA rates for equipment or the Building Permit Fee schedule.


How much Match must be provided?

This depends on the size of your city/county and the Program Activity you are applying for. There is a minimum Match requirement based on population. Match is not required for TBRA or CFDC. Match is also not a requirement if you are serving Persons with Disabilities under the Persons with Disabilities set-aside or victims of Disaster under the Disaster Relief set-aside.


How much funding may I apply for?

During 2012, the HOME Notice of Funding Availability (NOFA) is only open for Reservation System Applications.

If you apply to become a Reservation System Participant, you are not obligated to serve a specific number of households, nor are you limited to a specific amount of funds other than the total of funds in the Reservation set-aside for your activity. You may enter up to five Reservations at any given time for each county within your service area for all activities other than TBRA. TBRA allows up to thirty Reservations at any given time. Once a Reservation is completed, and had moved into active status, you may place another Reservation.


What are the application requirements?

Most of the application requirements are built into the ASPM and the Uniform Application/RSP Application. These requirements can be found in §23.24 for all programs. All programs require:

An Applicant certification of compliance with state and federal laws and state and federal rules and guidance governing the HOME Program. This certification is included in the Application forms for Contract Award and for Reservation System Participation Agreements.

A resolution signed and dated within the six (6) months preceding the Application submission date from the Applicant's direct governing body which includes:

  • Authorization of the submission of the Application.
  • Commitment and amount of cash reserves, if applicable, for use during the Agreement term. These reserves must be in the amount of $80,000 for all programs other than TBRA. TBRA requires a $15,000 cash reserve. The availability of Cash Reserves must be documented in one of the following ways:
    • Financial statements indicating adequate local unrestricted cash or cash equivalents to utilize as cash reserves and a letter from the Applicant's bank(s) or financial institution(s) indicating that current account balances are sufficient; or
    • Evidence of an available line of credit or equivalent in an amount equal to or exceeding the above requirement; or
    • The CPA opinion letter from the most recent audit and a statement from the CPA that indicates, based on past experience with grant programs and past audits, the applicant has in place the best practices and financial capacity necessary in order to effectively administer a HOME Program award.
  • Source of funds for Match obligation and Match dollar amount. Contract awards must state a specific amount of Match, RSP Agreements only require that the governing body agrees to provide Match as required.
  • Name and title of the person authorized to represent the organization; and
  • Signature authority to execute a contract;

Any Applicant requesting $25,000 or more must be registered in the federal System for Award Management (SAM) and have a current Data Universal Numbering System (DUNS) number. Applicants may apply for a DUNS number (dnb.com). When you have the DUNS number, you can register with the SAM. To show that you are registered in the SAM, you may submit a print-out from the website showing your organization’s information.

An Application fee, to be defined in the NOFA, which is sufficient to discourage the submission of partial or incomplete Applications except as otherwise allowed by state statute. This application fee is $30. If you are a nonprofit providing expanded services (non-housing related) to your clientele, this fee may be waived, but you have to request the fee waiver in the resolution.


What happens if my Application has an error or I forgot to include an attachment?

Applications must be substantially complete when submitted to the Department. This means that all volumes must be included and forms completed. However, in the circumstance that there was an oversight on the Application or the Department requires further clarification, the Department will issue an Administrative Deficiency (“Deficiency”). This Deficiency will be sent to the Applicant in an email. The Deficiency will include the issue with the Application as well as curative measures that may be taken to correct the Deficiency. The Deficiency will include a date that the deficient item must be cured by. If the Deficiency is not cured by that date, the Application will be terminated. Department staff is available to assist Applicants with Application issues. In the event that an Application is terminated, the Applicant may reapply for funds as long as the NOFA has not closed and there is adequate funding. A terminated Application will not negatively impact a newly submitted Application.


Are there funds to pay for the Contract Administrator/ Reservation System Participant’s expenses?

Yes. Each Administrator will have Administrative funds available based on project costs, exclusive of soft costs and match. For all programs other than TBRA this amount is equivalent to 4% of project hard costs. For TBRA, this amount is 8% of Project Hard Costs. TBRA is allotted more Administrative Funds because TBRA does not have any associated soft costs.

Administrative funds can be used for any eligible administrative expense as allowed by 24 CFR §92.207. This includes, but is not limited to, costs for staff time, office supplies (including computers, software, etc. that may be necessary to comply with the Department’s paperless systems), marketing costs, and outsourcing of professional services to administer the program.

Additionally, costs can be offset by funds from project soft costs. These funds can be used to pay for expenses directly related to an address, such as inspection services and lead-based paint abatement.


If I become an Administrator, how will I implement the Program?

The HOME Division strives to provide excellent Technical Assistance to all of our State and Sub Recipients. Each Reservation System Participation Agreement will be assigned to a specific Performance Specialist. Your Performance Specialist will work closely with you throughout the Agreement period to ensure your success.

Additionally, the HOME Division has posted online Learning Modules which can be accessed at any time by you and your staff. These modules will provide detailed information on topics associated with administration of your HOME funds.