The federal HOME Investment Partnerships Program has reached a milestone, producing 1 million units of affordable housing, announced the Department of Housing and Urban Development (HUD).
Created 20 years ago, the HOME program provides formula grants to states and localities that communities often use in partnership with local nonprofit groups to fund a wide range of affordable housing developments, both rental and homeownership.
Each year, HUD allocates about $2 billion to more than 600 state and local jurisdictions to increase or improve the affordable housing stock. The program also provides rental assistance.
HUD identified the 1 millionth HOME unit as a three-bedroom, two-bath house in Owensboro, Ky. Resident Michelle Nash, a mother of three, helped to build the home along with Habitat for Humanity.
Nash purchased the home for $65,500 after contributing 600 hours of labor toward its construction. The total construction cost was $109,260, with a HOME investment of $35,000. The monthly mortgage is $400, allowing her to be a full-time student as she cares for her children, according to HUD.
“Today, state and local governments rely on the HOME program to produce affordable homes for very low- and extremely low-income families struggling to find a place to call home. Reaching 1 million homes provides this landmark production program works,” said HUD Secretary Shaun Donovan.