HOME Program

The Home Investment Partnerships (HOME) program provides funding for cities to acquire, rehabilitate, and construct affordable rental and homeownership opportunities. HOME funds can also be used for the operating costs of community housing development organizations (CHDOs), down payment assistance for first-time homebuyers, and homeowner rehabilitation assistance.

Malden receives HOME funds through the North Suburban Consortium (NSC), a group of eight cities that collectively apply for and administer its HOME funds as a consortium. The NSC is composed of Arlington, Chelsea, Everett, Malden, Medford, Melrose, Revere, and Winthrop, and is led by Malden. Since its creation in 1991, the NSC has developed approximately 1,900 affordable HOME units, including an active portfolio of more than 600 HOME rental units.

The U.S. Department of Housing and Urban Development (HUD) awards HOME grants annually to HOME consortia and other state and local governments. The NSC’s HOME funds are administered by the Malden Redevelopment Authority, which as of July 1, 2021 does business as the City of Malden’s Office of Strategic Planning and Community Development (OSPCD). The NSC’s HOME program is administered in accordance with HOME laws and regulations.

HOME Programs

Applications for HOME funds are considered on a rolling, case-by-case basis. Developers seeking project financing, first time homebuyers seeking down payment assistance, and homeowners seeking rehabilitation assistance can apply for funds throughout the year. Community Housing Development Organizations (CHDOs) seeking CHDO operating funds should contact the HOME Director for information about availability and the certification process.

HOME programs are open to income-eligible residents or homebuyers in any of the eight NSC communities, and to any developer wishing to build affordable units in an NSC community.

  1. Affordable Housing Development
  2. Down Payment Assistance
  3. Homeowner Rehab
  4. CHDO Operating Assistance

The NSC receives an annual allocation of HOME funds through HUD. Rather than having a specific Request for Proposal process at a given time during the year, projects are considered on an ongoing basis.  We suggest an interested potential developer/applicant contact the NSC to make an appointment to discuss a project prior to submitting an application.

Eligible Applicants
Any private for-profit or not-for-profit entity that can demonstrate the capacity to develop and operate a qualifying project is eligible to apply for HOME project funding.

Eligible Areas
All NSC communities. The NSC communities are Arlington, Chelsea, Everett, Malden, Medford, Melrose, Revere, and Winthrop, Massachusetts.
 
Income Eligibility
HOME Program funds may only be used to assist households with incomes at or below 80% of area median income. Rental projects must primarily serve households with incomes at or below 60% of area median income. Assisted units must remain affordable for a period of between 5 and 20 years, depending on the initial amount of subsidy provided for the project.

Rental Housing Development
HOME-assisted rental housing must comply with certain rent limitations. HOME rent limits are published each year by HUD. The program also establishes maximum per unit subsidy limits and maximum purchase-price limits.

For rental housing and rental assistance, at least 90% of benefiting families must have incomes that are no more than 60% of the HUD-adjusted median family income for the area. In rental projects with five or more assisted units, at least 20% of the units must be occupied by families with incomes that do not exceed 50% of the HUD-adjusted median.
 
Rental Housing Affordability Requirements
HOME-assisted rental units must adhere to the rent and income limits described below for the following terms*:

Activity

HOME Investment Per Unit

Minimum Affordability Period

Acquisition or Rehabilitation of Existing Housing

Less than $15,000

5 years

$15,000 - $40,000

10 years

More than $40,000

15 years

Rehabilitation Involving Refinance

Any $ amount

15 years

New Construction or Acquisition of Newly Constructed Housing

Any $ amount

20 years

*These are minimum HUD requirements. NSC may impose a longer affordability requirement.
 
Homeownership Development
 HOME funds can be used for the acquisition and/or rehabilitation of existing structures for sale to income-eligible first time homebuyers, including distressed, abandoned, or foreclosed properties, or for the new construction of homeownership projects.

Units must be sold at a price that is affordable to a reasonable range of income-eligible buyers (i.e. 70% AMI to 80% AMI).

All homebuyers purchasing HOME-assisted units must have a household income of not more than 80% of the area median income. All homebuyers must have household assets of not more than $75,000 (post-purchase) to qualify. Homebuyers must attend a first time homebuyer counseling course from a HUD-certified agency.

Each homeownership unit acquired, rehabilitated, or constructed with HOME funds must have an appraised value that does not exceed 95% of the area's median price, as determined by the Homeownership Value Limits set annually by HUD.
 
 The length of the affordability period must adhere to the minimum HUD requirements:

HOME Investment Per Unit

Minimum Affordability Period

Less than $15,000

5 years

$15,000 - $40,000

10 years

More than $40,000

15 years


NSC may impose a longer affordability requirement. The affordability requirement will be secured through an Affordable Housing Restriction. If the homebuyer sells the property during the affordability period, certain resale or recapture requirement will apply. 

Application
Please complete the Developer Application with assistance from the NSC community representative where the project will be located. The application must be submitted to the member community staff person who will determine whether to submit it along with the community's formal sponsorship to the NSC Board. The NSC only considers applications sponsored by the host community (Arlington, Chelsea, Everett, Malden, Medford, Melrose, Revere, or Winthrop).
 
If the proposal is consistent with the NSC’s priorities in the Consolidated Plan, and the applicant demonstrates sufficient experience and resources to pursue the project, the NSC Board will make a decision regarding commitment of funds, and request additional information needed to undertake a complete financial analysis.

Project Selection Guidelines
 To be considered for HOME funding a project must be:

  • Located within one of the eight communities;
  • Eligible under HOME Program regulations; and
  • Consistent with NSC’s Consolidated Plan and HOME Program priorities.

Projects meeting the threshold requirements are further evaluated based upon the extent to which the project:

  • Is ready to proceed;
  • Sponsor has the experience and ability to carry out the proposed project;
  • Cost-effectively increases the supply of housing that is affordable to low-income persons, particularly in areas that are accessible to expanding job opportunities;
  • Exceeds the HOME Program's minimum requirements to serve very low- and low-income residents;
  • Provides matching resources;
  • Has other reliable funding sources committed to the total cost of the project;
  • Provides supportive services if proposed project targets persons with disabilities;
  • Provides facilities and services that permit elderly or handicapped residents who become frail and need assistance to continue to reside in the project;
  • Preserves the affordability of housing that may be converted, demolished or abandoned;
  • Remedies the effects of discrimination and improves housing opportunities for disadvantaged minorities; and
  • Stimulates investment and participation by the private sector.

HOME funds are allocated in amounts appropriate to the scope and needs of the proposed project. HOME funds are provided in the form of low interest loans. The NSC reserves the right to:

  • Adjust the amount of funds allocated to projects and to negotiate modifications to the proposed work plan and budget prior to executing an agreement; and
  • Fund those projects which reflect the highest and best use of HOME funds.

For additional information, please call the HOME Program Director at 781-324-5720 x 5729.