24 C.F.R. § 92.301
§ 92.301 Project-specific assistance to community housing development organizations. (24 CFR Part 92)
Operative Text
(a) Project-specific technical assistance and site control loans—(1) General. Within the percentage specified in § 92.300(c), HOME funds may be used by a participating jurisdiction to provide technical assistance and site control loans to community housing development organizations in the early stages of site development for an eligible project. These loans may not exceed amounts that the participating jurisdiction determines to be customary and reasonable project preparation costs allowable under paragraph (a)(2) of this section. All costs must be related to a specific eligible project or projects. (2) Allowable costs. A loan may be provided to cover project costs necessary to determine project feasibility (including costs of an initial feasibility study), consulting fees, costs of preliminary financial applications, legal fees, architectural fees, engineering fees, engagement of a development team, option to acquire property, site control and title clearance. General operational expenses of the community housing development organization are not allowable costs. (3) Repayment. The community housing development organization must repay the loan to the participating jurisdiction from construction loan proceeds or other project income. The participating jurisdiction may waive repayment of the loan, in part or in whole, if there are impediments to project development that the participating jurisdiction determines are reasonably beyond the control of the borrower. (b) Project-specific seed money loans—(1) General. Within the percentage specified in § 92.300(c), HOME funds may be used to provide loans to community housing development organizations to cover preconstruction project costs that the participating jurisdiction determines to be customary and reasonable, including, but not limited to the costs of obtaining firm construction loan commitments, architectural plans and specifications, zoning approvals, engineering studies, and legal fees. (2) Eligible sponsors. A loan may be provided only to a community housing development organization that has, with respect to the project concerned, site control (evidenced by a deed, a sales contract, or an option contract to acquire the property), a preliminary financial commitment, and a capable development team. (3) Repayment. The community housing development organization must repay the loan to the participating jurisdiction from construction loan proceeds or other project income. The participating jurisdiction may waive repayment of the loan, in whole or in part, if there are impediments to project development that the participating jurisdiction determines are reasonably beyond the control of the community housing development organization.
Under 24 CFR Part 92 § 92.301, HOME funds can be channeled through participating jurisdictions to community housing development organizations (CHDOs) in two distinct loan forms during the early stages of affordable housing projects. The first form covers technical assistance and site control costs—such as feasibility studies, legal and architectural fees, and property options—while the second covers preconstruction 'seed money' costs like construction loan commitments, zoning approvals, and engineering studies. Both loan types are subject to caps on what the jurisdiction considers customary and reasonable, must tie to a specific eligible project, and carry repayment obligations that can be waived if project impediments arise that are reasonably outside the CHDO's control.
Plain English — not legal advice.
Participating jurisdictions and property owners working with CHDOs under § 92.301 generally maintain clear documentation showing that any HOME-funded loan proceeds are allocated only to allowable project-specific costs, never to a CHDO's general operating expenses. Compliant operators typically track the distinction between site control loan costs (feasibility studies, title clearance, legal and architectural fees) and seed money loan costs (firm construction commitments, zoning approvals, engineering studies) to ensure each draw aligns with the correct loan category. Jurisdictions administering these funds also establish written policies defining what they consider 'customary and reasonable' costs and document any determination to waive repayment based on impediments beyond the borrower's control.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
While § 92.301 primarily governs the relationship between participating jurisdictions and CHDOs rather than individual tenants, the affordable housing projects it helps finance are intended to expand the supply of homes available to lower-income households. Tenants living in or seeking housing in CHDO-developed properties may benefit from understanding that these projects are subject to HOME program requirements, and concerns about whether a development is meeting those requirements can be raised with the local participating jurisdiction's HOME program office. Tenant-rights organizations and HUD's local field offices can also be resources for understanding how § 92.301-funded projects fit into broader affordable housing protections.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated September 4, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
Effective Timeline
References Out
No outbound references recorded yet for this provision.
References In
No inbound references recorded yet for this provision.