Tuesday, Nov 8 2011 2:07PM
The proposal would institute new oversight requirements both before and during projects to ensure risks are acceptable and funds are used appropriately. To comply with the rule, state and local governments would assess programs before granting HOME funds, and would regularly report on the project to HUD.
The U.S. Department of Housing and Urban Development (HUD) recently proposed new regulations for the Home Investment Partnerships Program (HOME).
The program, designed to produce more affordable housing for low-income residents, is the largest federal block grant to state and local governments in support of that purpose. While it has contributed to more than one million affordable homes since 1992, there have been concerns over its performance and level of accountability.
The proposal would institute new oversight requirements both before and during projects to ensure risks are acceptable and funds are used appropriately. To comply with the rule, state and local governments would assess programs before granting HOME funds, and would regularly report on the project to HUD.
In accordance with efforts to improve the program, data management is being improved to reduce risks and better identify and address projects that are experiencing difficulties. The proposed rule is meant to make the program more efficient and prevent fraud or misuse of funds, to better provide
affordable housing assistance and promote community development.
HOME grants can fund rental housing and rental assistance, homebuying and rehabilitation assistance and related activities. Because of the program's size, this proposal could significantly impact the availability and effective use of funds.
For further reference, check out this source:
U.S. Department of Housing and Urban Development