New HUD Regulations to strengthen and improve HOME
Today, HUD Secretary Shaun Donovan announced new HUD regulatory requirements that will strengthen and improve the HOME program. Since 1992, the program has affordably housed more than 1 million families.
Donovan said, “Through these new steps, we want to expand HOME’s impact and ensure that every dollar is used smartly to help families afford their homes. Since we took office, we have been committed to strengthening the HOME Program and ensuring that it creates affordable housing in an efficient and accountable way.” Specifically, HUD’s proposed rule would:
Require state and local governments to adopt policies and procedures to improve their oversight of projects, develop a system for assessing the relative risk of projects, and more closely monitor their HOME-funded sub-recipients;
Require state and local governments to assess a developer’s capacity and the long-term viability of the project, before they commit HOME funds to a project;
Require more frequent reporting by state and local ‘participating jurisdictions’ to enable HUD to more closely track projects once they’re under way; and
Set a higher ‘performance bar’ by establishing specific timeframes for taking appropriate corrective actions against participating jurisdictions who fail to complete what they started.
Click here to read the full press release from HUD.
This announcement follows yesterday’s joint committee hearing, “HUD Affordable Housing Program Fraud,” held by the House Financial Services Subcommittee on Insurance, Housing and Community Opportunity as well as the Subcommittee on Oversight and Investigations.
Click here to read our previous post announcing the hearing.
Click here for an archived webcast of yesterday’s hearing and a list of witnesses.