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

HOME Frequently Asked Questions

What non-development programs are available?

Homeowner Rehabilitation Assistance (HRA) - Provides funding for assisting lower income households that own their home with rehabilitation, reconstruction, or new construction of their primary residence.

Homebuyer Assistance (HBA)- Provides funds to lower income homebuyers for downpayment and closing cost assistance. This program also provides funding for modifications to the home to make it accessible for persons with disabilities after the home is purchased.

Tenant-Based Rental Assistance (TBRA) - Provides funds to provide rental subsidies and security deposits for eligible households, based on income while household engages in a self sufficiency plan.

Contract for Deed (CFD) - Provides funds to assist lower 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. Additional CFD funds are available to provide home rehabilitation or reconstruction, if needed.

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

Criteria Reservation System Contract Award
Funding Availability Available funding based on a communal pot. Funds may be moved into Reservation System to meet demand. Funds awarded to a specific Administrator for a specific activity.
Flexible Funds Participant may provide any type of assistance (TBRA, HBA, HRA) for any set-aside type (General, PWD, CFD, DR) to their community on an as-needed basis. Funds are restricted to the activity to which the contract is awarded.
Application Abbreviated Application Process. Comprehensive application process with a specified deadline.
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 by timelines provided in the State HOME Rules at time of application

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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 (Community Development Block Grant (CDBG), Community Services Block Grant (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, the Department requires 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.

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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 CFD. Match is also not a requirement if you are serving households under the Persons with Disabilities set-aside or the Disaster Relief set-aside.

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How much funding may I apply for?

The HOME Notice of Funding Availability (NOFA) provides the maximum amount that may be requested by activity type.

If you apply to become a Reservation System Participant (RSP), you are not obligated to serve a specific number of households, nor are you limited to a specific fund amount other than the total of funds in the reservation set-aside for your activity. You may enter up to four reservations at any given time for each county within your service area for all activities other than TBRA. TBRA allows up to 20 reservations at any given time. Once a reservation is completed, and has moved into active status, you may place another reservation.

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What are the application requirements?

Most of the application requirements are built into the Application Submission Procedures Manual (ASPM) and the contract or Reservation System Participation (RSP) Application. These requirements can be found in 10 TAC ยง23.25 . All applications require an applicant certification of compliance with state and federal laws, rules, and guidance governing the HOME Program. This certification is included in the application.

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 contract or RSP Agreement term. 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.
  • 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 and grant agreement;

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.

A $30 application fee, as defined in the NOFA, is sufficient to discourage the submission of partial or incomplete applications except as otherwise allowed by state statute. If you are a nonprofit providing expanded non-housing related services to your clientele, this fee may be waived if you request the fee waiver in the resolution.

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

Applications must be substantially complete when submitted to TDHCA. This means that all volumes must be included and forms completed. However, in the event of an oversight on the application, or TDHCA requires further clarification, TDHCA 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(s) must be cured by. If the Deficiency is not cured by that date, the application will be terminated. TDHCA staff is available to assist applicants with application issues. In the event that an application is terminated, the applicant may appeal staff’s decision in accordance with 10 TAC §1.7 or they may reapply for an agreement under an open NOFA. A terminated application will not negatively impact a newly submitted application.

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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 in an amount equivalent to 4% of project hard 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 TDHCA’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.

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If I become an administrator, how will I implement the program?

The HOME Division strives to provide excellent technical assistance to all of our funding recipients. Each administrator is assigned to a specific Performance Specialist. Your Performance Specialist will work closely with you throughout program implementation to ensure your success.

The HOME Division also periodically posts HOME Technical Assistance material online for timely access by you and your staff. This material provides detailed information on topics associated with administration of your HOME funds.