Rental Housing Development

Emerald Ridge
Emerald Ridge, East Alton

HOME Application

The Madison County HOME Program is designed to develop viable communities by promoting integrated approaches that provide decent housing, a suitable living environment and the expansion of economic opportunities for low and moderate income persons.

Eligibility for the Madison County HOME Program is open to not-for-profit and for-profit organizations, local governments, public agencies and Community Housing and Development Organization (CHDO’s). 

Utilizing partnerships among federal, state and local governments, and the private sector, including lending institutions, non-profit Community Housing Development Organization developers (CHDO) and for-profit and non-profit organizations, the program facilitates the construction of new single and multiple family housing, the rehabilitation of existing homes and multi-unit housing facilities, and provides tenant-based rental assistance.  HUD requires that 15 percent of all HOME Program funds are required to be used for projects that are developed, owned or sponsored by CHDO s.   

The HOME Program attempts to empower low and moderate income residents in Madison County by assisting in providing safe, suitable housing, helping to give residents a voice in the future of their communities; and assisting in the development of the management skills of existing organizations so they can achieve greater production capacity.

Madison County HOME Program Summary

HOME funds may be used for the following activities to develop rental housing:

  • Moderate and substantial rehabilitation;
  • Acquisition and rehab of existing units
  • New construction
  • Other reasonable and necessary activities related to affordable housing development

  HOME funds may be used perform the following homeownership related activities: 

    • Moderate and substantial rehabilitation
    • Acquisition and rehabilitation of existing units
    • New construction 

  Affordability Requirements

HOME-assisted rental units must adhere to the rent and income limits described below for the following terms:

Rental Housing Activity

Minimum Period of Affordability

Under $15,000

5 years

$15,000 to $40,000

10 years

Over $40,000 or   rehabilitation involving refinancing

15 years

New construction or   acquisition of newly constructed housing

20 years


In order to ensure that rental units remain affordable, the HOME Program has a two-tiered structure for rent and income limits as follows:

Low HOME Rent and Occupancy Standard: At least 20% of the HOME-assisted units must have rents that do not exceed the "Low HOME Rent."  These units must be occupied by families who have annual gross income that are less than or equal to 50% of the area median income; and

High HOME Rent and Occupancy Standard: The remaining HOME-assisted units (up to 80% of the units) must have rents that do not exceed the High HOME Rents.  These units must be occupied by families who have annual gross incomes that are less than or equal to 60% of the area’s median income.

HOME-assisted homeownership activities must adhere to long term affordability provisions for the following terms:

Homeownership Housing Activity

Minimum Period of Affordability

Under $15,000

5 years

$15,000 to $40,000

10 years

Over $40,000

15 years


The period of affordability is enforced by way of resale or recapture provisions that are disclosed at the time of application.  Resale provisions require owner occupancy and restrict any subsequent sale to an income eligible household during the period of affordability.  Recapture provisions require owner occupancy and requires repayment of direct buyer assistance for default of provisions under the applicable period of affordability.   

Income and Rent Limits

All HOME funded rental and homeownership activities must benefit persons or households at or below 80 percent of the area median income as published by HUD.  Rent and income limits by geographic area can be found in the HOME Program Application.

Match Funding

All funds distributed under the HOME Program must be matched by a non-federal source of financing.  The required match contribution for all types of activities is 25 percent.  Madison County Community Development will give a priority to proposals that exceed the required source of non-federal match.

For the majority of applications permanent, non-federal sources of funds -- non-refundable contributions from state or local governments or private sources -- will be eligible to satisfy the match funding requirement.  All applications for HOME funds should include anticipated sources of non-federal matching funds.  Additional information on matching funds is available in the General Program Guide or by contacting the Madison County Community Development department.

Federal Requirements

HOME-assisted housing units must conform to the following federal requirements, as applicable:

Equal Opportunity   Environmental Review (NEPA) 
Affirmative Marketing Fair Housing
Displacement & Relocation  Accessibility 
Labor (Davis-Bacon)  Acquisition 
Lead-Based Paint (Title X)   Debarment 

Funding Source:  U. S. Department of Housing & Urban Development

Grant Cycle:         Fiscal year is from October 1 to September 30

For additional information on the Madison County Development Community HOME Program contact Holly Klausing (618) 296-4247.