HOME rental recipients:

After discussions with HUD it has been determined that HOME projects need to have initial occupancy of all units before projects are closed-out, thus lowering the vacancy rate of HOME units during initial rent-ups. To achieve this directive from HUD, IFA is implementing a new procedure for HOME close-outs. 

HOME recipients that are ready to close their rental project, but do not have initial occupancy of all units, should send-in initial close-out documentation (Section 3, match report). When all of the units in the projects have been initially occupied by a HOME eligible household the owner may submit the final draw, final quarterly report and final completion report. Please note that until your project has obtained initial occupancy of all units, the project will have to submit a quarterly report on its due date until the final quarterly report is sent. This procedure is effective immediately.

Once IFA has entered the occupancy report into HUD's IDIS system, the owner will receive a notice from IFA stating that the affordability period has begun. From that point forward, the owner will work with IFA's HOME compliance department to submit compliance reports and arrange for onsite inspections.

Please be advised that your project's affordability period (the length of HOME compliance) will not start until the project has been closed-out. 

If you have questions about this new procedure please contact your IFA project manager.