The HOME-ARP program was created by the American Rescue Plan (ARP) to reduce homelessness and increase housing stability. IFA was designated approximately $29 million in HOME-ARP funds in a one-time allocation.
Qualified Populations
Individuals experiencing homelessness*
Individuals at risk of homelessness*
Persons fleeing or attempting to flee domestic violence, dating violence, sexual assault, stalking or human trafficking.
Other populations for which providing supportive services or assistance would prevent homelessness or would serve those at greatest risk of housing instability.
*As defined by 24 CFR 91.5
Eligibility
Activities
Rental Housing
HOME-ARP funds may be used to acquire, rehabilitate, or construct affordable rental housing primarily for occupancy by households of individuals and families that meet the definition of one or more of the qualifying populations.
Supportive Services Supportive services are offered for activities necessary to assist the qualifying populations, prevent homelessness, or enable qualifying households to obtain and maintain housing. Eligible services are listed in CPD 21-10, and in the Supportive Services section of this application.
Nonprofit Operating Reasonable and necessary costs of operating the nonprofit organization.
Nonprofit Capacity Building Reasonable and necessary general operating costs that will result in the expansion or improvement of an organization’s ability to successfully carry out eligible HOME-ARP activities.
Applicants
Nonprofit and for-profit entities
Local governments
Application Process
The current HOME-ARP funding round has closed. The next application round will open in CY 2026.
Yes, Treasury guidance seeks to minimize the administrative burden of using ERA2 funds as a capital subsidy in conjunction with other affordable housing programs, including HOME-ARP.
No, the project simply needs to offer housing to all 4 qualifying populations to earn points.
No, supportive services are not required to be eligible for unit development funds.
No, applicants can partner with service providers within the area to provide services.
Qualifying population units do not have an income restriction. Applicants for these units qualify simply based on their confirmed stats as one of the 4 ‘QP’ populations. Rent limitations for ‘QP’ units is restricted to not exceed 30% of the adjusted income of a household whose annual income is 50% of the median area income as defined by HUD.
Low Income units require the applicant’s income to be confirmed initially in accordance with HUD’s income determination section 92.203. This can include income up to 80% of the AMI. Rent limitations for ‘Low Income’ units must comply with HUD’s HOME rent limitations 24 CFR 92.252(a). This means the lesser of Fair Market Rent for existing housing for comparable units in the area, as established by HUD, or a rent equal to 30% of the income of a family at 65% of the median income for the area, as determined by HUD. When a household receives tenant-based rental assistance, the rent allowable is the tenant rental contribution plus the rent subsidy allowable under the rental assistance program.
HUD has a qualifying population guide which gives greater detail on each population, as well as documentation the project will be required to obtain and retain to confirm each participants status in the qualifying populations: HOME-ARP Qualifying Populations: At-A-Glance
Project specific waitlists are allowable in HOME-ARP. Applicants will need to explain in the application how the waitlist is managed and operated and how qualifying people are selected to the projects waitlist.
Yes, both programs, sponsored by Iowa Finance Authority, may contribute funds to the same unit. If multiple programs are subsidizing the same unit, the unit will be required to comply with the most restrictive of the two programs’ rules.
If an environmental review is completed by the first participating jurisdiction, the second participating jurisdiction may work together with the first and obtain a copy of their approved review. The second participating jurisdiction may then use this information in their request for release of funds from HUD. Both jurisdictions must have an approved environmental release of funds before work may begin on the project.
70% of HOME-ARP units must be reserved for ‘Qualifying Population’ households. For units restricted for occupancy by qualifying households, in no case can HOME-ARP rents exceed 30% of the adjusted income of a household whose annual income is equal to or less than 50% of the median income for the area, as determined by HUD. 30% of HOME-ARP designated units may be reserved for low-income households. For los-income households the rent limitation is the lesser of the Fair Market Rent for existing housing for comparable units in the ara, as established by HUD, or rent equal to 30% of the income of a family at 65% of median income for the area, as determined by HUD. See HOME-ARP program notice CPD-21-10 for more information.
Davis-Bacon requirements apply if the construction contract includes 12 or more HOME-ARP assisted units.
The application manual includes the scoring rubric for this funding round. Category 9 of the scoring rubric discussed the fully accessible units. The scoring criteria indicates “The percentage of fully accessible HOME-ARP units as shown in the plans submitted with the application”. The percentage is based on the total HOME-ARP funded units.
Resources
Notices
The current HOME-ARP funding round has closed. Notices will be posted when the next application round opens in CY 2026.
