The federally funded HOME program provides a financing source for several eligible activities that increase the supply of affordable housing for low and very low income persons. Funding is determined annually by HUD and depends on congressional appropriation. One of these activities is the acquisition and rehabilitation or new construction of rental housing. As the HOME Administrator for the State of Missouri, MHDC uses a portion of its annual HOME allocation to finance rental production at a very low interest rate, which results in rents that are affordable to low income families.
Developers (for-profit and non-profit) are eligible to apply for financing. Applicants must demonstrate prior, successful housing experience and engage the services of housing professionals; such as, architects, appraisers, attorneys, accountants, contractors and property managers with demonstrable multifamily housing experience. Developers must have the financial capacity to successfully complete and operate the proposed housing development.
Additionally, applications must meet a demonstrated low-income housing need, provide housing for low-income and very-low income persons and families, demonstrate local support, leverage HOME funds with tax credits, other equity and/or rental assistance, provide rents below HUD’s Fair Market Rents” or rents based upon a payment affordable to persons below 50 percent of the Area Median Income and be economically feasible.
The Commission sets the schedule annually and a Notice of Funding Availability (NOFA) is published.
Other HUD Forms
MHDC also utilizes funding for home repair of income qualifying single-family homeowners to complete non-cosmetic home repair. Funds are allocated through a Notice of Funding Availability.