News

HUD Delays Implementation of Final Rule Updating HOME Investment Partnerships Program

The U.S. Department of Housing and Urban Development (HUD) has announced a significant update to the HOME Investment Partnerships (HOME) program regulations. This final rule, which was originally set to take effect on February 5, 2025, has now been delayed until April 20, 2025. The delay follows President Trump's directive to freeze all pending regulations, affecting the timeline for implementation. The final rule was published in the Federal Register on January 6, 2025, and aims to modernize and streamline program requirements while ensuring better alignment with other federal housing initiatives. Here is a detailed overview of the changes and their implications for stakeholders. Key Highlights of the Final Rule Simplification and Streamlining: The updated regulations are designed to reduce administrative burden and complexity, making it easier for participants to navigate the program requirements. Changes include clarified guidelines and updated processes to improve efficiency and accessibility. Alignment with Other Federal Housing Programs: The revisions harmonize HOME program regulations with other federal housing initiatives, such as the Community Development Block Grant (CDBG) and Section 8 Housing Choice Voucher programs. This alignment facilitates cohesive and complementary use of federal housing resources. Implementation of Recent Statutory Amendments: The final rule incorporates recent amendments to the HOME statute, ensuring compliance with current legislative mandates. Applicability: The revised regulations apply to developments for which HOME funds are committed on or after 30 days following the new implementation date effectively starting April 20, 2025. Background on the Final Rule The final rule follows the publication of a proposed rule on May 29, 2024. HUD received and reviewed extensive feedback from stakeholders during the comment period, resulting in adjustments to ensure the regulations address both practical challenges and statutory requirements. Minor revisions were also made to CDBG and Section 8 program regulations to align with the updated HOME program rules. Implications for Affordable Housing Stakeholders For Developers: Developers planning to utilize HOME funds for projects must familiarize themselves with the updated requirements to ensure compliance. Streamlined processes may expedite project approvals and reduce administrative delays. For Public Housing Agencies (PHAs) and Local Governments: Agencies administering HOME funds will benefit from more precise regulations and enhanced alignment with other federal housing programs. Training and resources may be required to adapt to the new requirements. For Tenants and Communities: The updates aim to enhance the efficiency and effectiveness of HOME-funded projects, resulting in improved housing opportunities for low-income families. Next Steps HUD encourages all stakeholders to review the final rule in detail and assess its impact on their operations and strategies. Additional guidance and training materials are expected to be released to assist in the transition to the updated regulations. Given the implementation delay, stakeholders have extra time to prepare for the changes and ensure compliance with the new requirements. Conclusion The final rule represents a significant step forward in modernizing the HOME program and optimizing its role in addressing the nation s affordable housing needs. Although implementation has been postponed until April 20, 2025, stakeholders should continue preparing to align with the updated requirements and capitalize on the improved processes.

Understanding Medicare Advantage Flex Card Benefits in HUD Housing Income Determinations

In January 2025, the U.S. Department of Housing and Urban Development (HUD) clarified how Medicare Advantage (MA) supplemental benefits, particularly those administered through Flex Cards, should be treated when calculating income for HUD-assisted housing residents. This guidance helps housing providers accurately determine which benefits should be included or excluded from income calculations. Key Points for Income Calculations Rent and Utility Support When MA supplemental benefits are explicitly used for rent and utilities, these amounts must be included in income determinations. Only the amount spent on rent and utilities should be counted, not the total available benefit. Rent and utility expenditures may be documented through third-party verification or resident self-certification if third-party documentation is unavailable. Other Flex Card Benefits Benefits used for purposes other than rent and utilities (such as groceries, medical expenses, or over-the-counter medications) should be excluded from income calculations. Unused benefits that expire at month-end or year-end are not counted as income. Housing providers should assume Flex Card benefits are not being used for rent and utilities unless they have specific information indicating otherwise. Verification Requirements Housing providers should note that: Most MA supplemental benefits are excluded from income and do not require verification. Providers should not require beneficiaries to track or document routine Flex Card purchases for excluded benefits. Only benefits used explicitly for rent and utilities need verification. As part of the application and intake procedures, owners and managers should inquire whether applicants or residents use MA benefits for rent or utilities. When residents report using MA benefits for rent and utilities, providers should first attempt to obtain third-party documentation. Self-certification is acceptable when third-party documentation cannot be obtained. Example Scenario If a resident receives a $100 monthly Flex Card benefit: If they spend $50 on medical expenses and $0 on rent/utilities, the entire $100 is excluded from income. If they spend $30 on rent/utilities and $70 on other eligible expenses, only the $30 used for rent/utilities is counted as income. Any unused portion that expires is not counted as income. Practical Implementation Housing providers should: Update their policies and procedures to reflect these requirements. Train staff on the proper treatment of MA supplemental benefits. Develop appropriate verification procedures for benefits used for rent and utilities. Maintain clear documentation of included benefits. This guidance helps ensure consistent and appropriate treatment of Medicare Advantage supplemental benefits while minimizing the administrative burden on housing providers and residents.

A. J. Johnson Partners with Mid-Atlantic AHMA for December Training on Affordable Housing - March 2025

In March 2025, A. J. Johnson will partner with the MidAtlantic Affordable Housing Management Association for three live webinar training sessions for real estate professionals, particularly those in the affordable multifamily housing field. The following sessions will be presented: March 12: Intermediate LIHTC Compliance - Tailored for experienced managers, supervisory personnel, investment asset managers, and compliance specialists, this program builds upon the content covered in the Basics of Tax Credit Site Management. It includes a more thorough discussion of income verification issues, minimum set-aside concerns (including the Average Income Minimum Set-Aside), optional fees, and the use of common areas. The Available Unit Rule is explored in detail, along with the requirements for units occupied by students. Attendees will also learn how to establish rents at a tax-credit property. The changes impacting the LIHTC program due to HOTMA will also be covered in detail.  While this course includes some practice problems, it is more discussion-oriented than the Basic course. A calculator is necessary for this course. March 13: Interviewing Skills for Affordable Housing Managers - One of the most crucial skills any affordable housing manager can possess is interviewing applicants and residents to gather the information needed to determine eligibility. Unfortunately, this is also one of the most significant weaknesses of many affordable housing managers. To address this issue, this training has been developed. This three-hour session emphasizes the interview process and provides concepts and tools to assist managers during their interviews. The techniques apply to various interview settings, including initial eligibility interviews, interim certifications, and annual recertifications. The primary focus is on the initial eligibility interview, which is critical to the housing process. The skills taught in this session will also help managers detect fraud and handle interactions with third parties when resolving discrepancies. March 26: Advanced LIHTC Compliance - This full-day training is designed for senior management staff, developers, corporate finance officers, and others involved in decision-making regarding the structure of LIHTC deals. This training addresses complex topics such as eligible and qualified basis, applicable fraction, credit calculation (including first-year calculation), placed-in-service issues, rehabilitation projects, tax-exempt bonds, projects with HOME funds, Next Available Unit Rule, employee units, mixed-income properties, the Average Income Minimum Set-Aside, the vacant unit rule, and effective collaboration with State Agencies. These sessions are part of the year-long collaboration between A. J. Johnson and MidAtlantic AHMA and are designed to provide affordable housing professionals with the knowledge needed to effectively manage the complex requirements of the various agencies overseeing these programs. Persons interested in any (or all) training sessions may register by visiting either www.ajjcs.net or https://www.mid-atlanticahma.org.

Dealing with Federal Immigration Agents at Apartment Communities

Not surprisingly, we are starting to receive inquiries from property managers about how they should respond if federal immigration officials enter a property searching for individuals without legal immigration documents. Immigration and Customs Enforcement (ICE) raids at apartment communities are becoming more common and have already taken place in Alexandria, VA, New York City, Chicago, Boston, Miami, Los Angeles, Atlanta, and Phoenix. According to sources within the Trump administration, significant immigration raids are scheduled for three U.S. cities each week. Such raids will almost certainly affect some apartment communities. In addition to ICE, agencies taking part in the raids include the U.S. Marshals Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Customs and Border Protection, the Drug Enforcement Administration (DEA), and the FBI. Apartment community property managers and staff must know how to respond if such raids happen on their property. Unlike what you may see on TV, federal agents do not have unrestricted access to private property or homes. As property managers, you are responsible for safeguarding your residents' privacy. I will outline the key rights and appropriate responses for property managers when interacting with ICE agents. My focus will be on legal compliance while protecting tenant privacy. This guidance is general in nature and is not meant to replace advice from your company s counsel. First, property managers should politely ask for and carefully examine: The agents' credentials - official identification and badge numbers A judicial warrant is signed by a judge or magistrate (not merely an administrative warrant). An administrative warrant is a formal written document that authorizes a law enforcement officer from a designated federal agency, such as an ICE agent from DHS, to make an arrest or seizure. This type of warrant is issued by a federal agency like DHS and can be signed by an immigration judge or immigration officer. Unlike a judicial warrant, an administrative warrant does not permit a search. Therefore, an ICE agent armed only with an administrative warrant cannot conduct a search based on that warrant. Nonetheless, in certain circumstances, the administrative warrant allows the agent to effectuate a seizure or arrest. It is important to note that an immigration warrant does not equate to a judicial warrant; an immigration warrant does not permit a search of nonpublic areas. If an ICE officer or any other immigration agency officer arrives at your property requesting entry to search your premises or to obtain evidence with only an immigration warrant, you have the right to refuse entry and reject compliance with the warrant since it does not grant the officer the authority to enter or conduct a search. Without a valid judicial warrant, property managers can: Decline to provide access to private areas of the property Refuse to share tenant information or records Politely state, "I do not consent to entry without a judicial warrant." Document the interaction, including agent names, badge numbers, and time. If presented with a judicial warrant, managers should: Verify it lists the specific address and areas to be searched. Only allow access to the areas specifically listed. Keep a copy of the warrant. Take detailed notes of the interaction. Contact the property owner and legal counsel. Throughout any interaction: Remain professional and calm. Do not physically obstruct agents. Do not provide false information. Take notes or record the interaction if it is legal in your state. Document everything in writing afterward. A valid judicial warrant must be signed by a federal or state judge or magistrate (not just an ICE agent) It must have the correct property address, including unit numbers if applicable Check the date - warrants have expiration dates. Look for "U.S. District Court or the appropriate state court" in the header Verify it has a case number Confirm the judge's signature is present (not a stamp or electronic signature) Tenant Privacy Rights: Property managers cannot give consent for searches of individual tenant units. Tenant lease agreements generally include privacy protections Managers should not provide:Tenant rental applicationsLease agreementsPayment recordsUnit numbersPersonal informationAccess to security cameras or footage Keys to individual units If ICE presents a subpoena rather than a warrant: Subpoenas do not grant immediate entry rights You can state, "I need time to review this with legal counsel." Typically, a compliance timeframe is listed. Contact your attorney before providing any documents. Important Documentation Steps: Write down the names and badge numbers of all agents present Note the exact time and date Record which areas of the property were accessed Document any requests made by agents Keep copies of all paperwork presented Note any statements made by either party List any witnesses present Here's how to prepare property staff for potential encounters with ICE agents: Staff Training Protocol: Have a clear written policy for all staff members Designate specific personnel authorized to interact with law enforcement Create a contact chain showing who to call (property manager, legal counsel, owner) Practice scenarios through role-playing exercises Post emergency contact numbers at the front desk/office Specific Staff Instructions: Never volunteer information Direct all law enforcement to the property manager Don't run or create panic if agents arrive Don't provide access codes or keys Keep a logbook for all law enforcement interactions If approached alone, say, "Let me get my supervisor - they're authorized to assist you." Emergency Response Plan: Keep the property attorney's number easily accessible Have a backup manager designated Maintain an updated list of translation services if needed Keep blank incident report forms ready Have a working camera or phone ready to document Maintain copies of "Know Your Rights" materials Communication Protocol: Establish how to notify residents of law enforcement presence Create a system for documenting all interactions Set up secure storage for tenant information Develop a media response plan Have a process for informing property ownership This article offers comprehensive guidance for property managers on interacting with Immigration and Customs Enforcement (ICE) agents and other federal law enforcement agencies. The key points emphasize that property managers should: Understand the critical distinction between judicial and administrative warrants, with only judicial warrants permitting searches of private areas. Protect tenant privacy rights by not voluntarily sharing personal information or rental documents or providing access to private spaces without proper judicial authorization. Maintain professionalism while knowing their rights to refuse entry or information sharing without proper judicial warrants. Implement thorough documentation practices for all law enforcement interactions. Develop clear protocols for staff training, emergency response, and communication channels. The guidance emphasizes the significance of preparation through staff training, written policies, and established communication protocols. Property managers are urged to work closely with legal counsel when needed and maintain detailed records of all interactions. This document serves as a practical resource for property managers to navigate their legal obligations while protecting tenant privacy rights and ensuring professional operations during potential immigration enforcement activities. Since it is likely that immigration enforcement actions at an apartment community may involve agents bypassing management and proceeding directly to apartments, I am working with Immigration attorneys to develop a checklist for residents that will outline their rights if confronted with immigration authorities. After completing that document, I will post it on our website and you may make it available to your residents.

Rent Rules Under Final HOME Rule

The final HOME rule changes the HOME Program rent determination rules. One change permits the use of a PHA utility allowance for HOME units. The second and more significant change allows owners to collect more than the HOME rent for tenants who receive project-based rental assistance - even if the resident lives in a High HOME unit. The rules for establishing rent for a HOME unit are as follows: High HOME Rent Limits: The rent must not exceed the lesser of the fair market rent for comparable units in the area or 30% of the adjusted income of a family whose annual income equals 65% of the median income for the area. Low HOME Rent Limits: In rental projects with five or more HOME-assisted units, at least 20% of the units must be occupied by very low-income families. The rent for these units must not exceed 30% of the annual income of a family whose income equals 50% of the median income for the area, or the rent contribution of the family must not be more than 30% of the family s adjusted income. Alternatively, if the unit is LIHTC, the rent must not exceed the gross rent for rent-restricted residential units as determined under 26 U.S.C. 42(g)(2). SRO Projects: The rent limit for SRO units with both sanitary and food preparation facilities is the zero-bedroom fair market rent. The limit for units with only one or neither of these facilities is 75% of the zero-bedroom fair market rent. Utility Allowances: The participating jurisdiction must establish maximum monthly allowances for utilities and services (excluding telephone, cable, and broadband) and update them annually. The utility allowance can be based on the HUD Utility Schedule Model, the local public housing authority s utility allowance, or another HUD-approved method. Note the change from the prior HOME rule, which did not permit using the PHA allowance. Review and Approval of Rents: The participating jurisdiction must review and approve rents proposed by the owner to ensure they do not exceed the rent limits minus the utility allowances. Subsequent Rents During the Period of Affordability: The HOME rent limits are recalculated periodically, and the participating jurisdiction must provide project owners with updated rent limits. Owners must annually provide information on rents and occupancy of HOME-assisted units to demonstrate compliance. Adjustment of HOME Rent Limits for an Existing Project: HUD may adjust the HOME rent limits for a project if necessary to support the continued financial viability of the project. Relation of Tenant Income to Rent: Each tenant's income must be determined initially and annually during the affordability period. However, the participating jurisdiction may permit an owner of small-scale housing to re-examine each tenant s annual income every three years instead of annually. The tenant s income will determine the rent that may be charged. Over-Income Tenants: If a tenant s income increases above the low-income (80%) limit, the tenant must pay a rent equal to the lesser amount payable under State or local law or 30% of the family s adjusted income. A tenant may pay more than the maximum HOME rent in the following situations: If the tenant participates in a rental assistance program and contributes no more than 30% of their monthly adjusted income or 10% toward rent, the maximum rent due from the tenant is their contribution under that program. Unlike the prior rule, this now applies even to High-HOME units. If a tenant's income increases above the low-income (80%) limit, the tenant must pay a rent amount equal to the lesser of the amount payable under State or local law or 30% of the family's adjusted income. For tenants in HOME-assisted units subject to rent restrictions under section 42 of the Internal Revenue Code (LIHTC units), the rent must comply with those restrictions. For floating HOME units, the rent must not exceed the fair market rent for comparable, unassisted units in the neighborhood. These revised rent rules go into effect for HOME projects on February 5, 2025.

Understanding Security Deposits and Fees in HOME Rental Projects

The Final Rule for the HOME Investment Partnerships Program (HOME), effective February 5, 2025, establishes specific rules regarding security deposits and fees that property owners and managers must follow. These regulations are designed to protect tenants while maintaining fair housing practices. Below, we outline the key aspects of these guidelines. Security Deposits: Key Requirements Refundable Nature and LimitsSecurity deposits must be fully refundable and cannot exceed the equivalent of two months' rent. This ensures that tenants are not overburdened financially. Prohibition of Surety BondsThe use of surety bonds, security deposit insurance, or similar instruments is strictly prohibited, whether as a replacement for or in addition to a security deposit. This regulation is especially relevant as such services gain traction in the rental housing industry. Deductions and RefundsUpon tenancy termination, owners must: Provide an itemized list of charges, specifying amounts for each item deducted from the deposit. Promptly refund the remaining balance to the tenant after deducting any valid expenses. Permissible Fees HOME regulations allow property owners to charge specific fees, provided they align with the following parameters: Application FeesOwners may charge a reasonable application fee. The definition of "reasonable" is flexible, depending on factors such as location, financing sources, and the type of background checks performed. Customary Parking FeesParking fees are permissible if they are customary for rental housing projects in the area. Fees for Voluntary ServicesOptional services such as bus transportation or meals can be charged, but participation in these services must remain voluntary for tenants. Prohibited Fees To safeguard tenants, HOME regulations explicitly prohibit: Charges for surety bonds or similar instruments in place of or in addition to security deposits. Non-customary fees such as those for laundry room access or fees to inspect units. Fees for addressing deficiencies caused by normal wear and tear or unrelated to tenant activity. Intersection with Other Housing Programs Property managers must also account for overlapping program regulations, such as the Low-Income Housing Tax Credit (LIHTC) program. For instance: While parking fees may be allowed under HOME, they may not comply with LIHTC guidelines if the parking space is included in the project s eligible basis. Best Practices for Compliance Stay InformedManagers should familiarize themselves with HOME and other applicable program rules to avoid compliance issues. Transparent CommunicationClearly outline all fees and security deposit policies in lease agreements to ensure tenants are well-informed. Record-KeepingMaintain detailed records of all fees collected and refunds issued to provide transparency and support regulatory audits. Property owners and managers can foster trust with tenants by adhering to these guidelines while ensuring compliance with HOME program regulations.

Understanding Income Determination Methods in the HOME Program Final Regulation

Understanding Income Determination Methods in the HOME Program The new final HOME regulation maintains specific income targeting requirements that necessitate accurate income determination for participating families. This article outlines the various methods and requirements for determining annual income under the HOME program's final regulation, effective February 5, 2025. Federal and State Subsidized Housing Units For HOME-assisted rental units that receive Federal or State project-based rental subsidies, participating jurisdictions must defer to the existing income determination processes: The public housing agency's determination The owner's determination The rental subsidy provider's determination Tenant-Based Rental Assistance When families receive Federal tenant-based rental assistance (such as housing choice vouchers) and apply for or live in HOME-assisted rental units, participating jurisdictions can (but are not required to) accept the rental assistance provider's income determination. Standard Income Determination Methods Participating jurisdictions must follow specific procedures for calculating annual and adjusted income for all other cases. The process includes several key components: Documentation Requirements For tenants in HOME-assisted housing without HOME tenant-based rental assistance, jurisdictions can use any of these methods: Examining at least two months of source documents (wage statements, interest statements, unemployment compensation statements). This method must be used to determine initial income. This method is also required every sixth year of the affordability period if the affordability period is ten years or more. In intervening years, the following methods may be used: Obtaining a written statement from the family regarding income and family size, with a certification of accuracy Securing a written statement from a government program administrator that verifies the family's annual income and size Jurisdictions must examine at least two months of source documentation for homeowners receiving rehabilitation assistance, homebuyers, and recipients of HOME tenant-based rental assistance. Income Definitions Participating jurisdictions must choose one of two definitions when determining income eligibility: Annual income as defined in 5.609(a) and (b). This is the Section 8 definition of income and will be used by most PJs. Adjusted gross income as defined by IRS Form 1040 series Important note: Jurisdictions must maintain consistency by using only one definition per HOME-assisted program or rental housing project. Income Calculation Considerations Family Composition and Income Projection When calculating family income, jurisdictions must: Project the prevailing rate of income at the time of eligibility determination. Include income from all household members except live-in aides and foster children/adults. Exclude income derived from the HOME-assisted project. Allow families to certify net family assets below the threshold for imputing income ($51,600 in 2025). Timing Requirements Income determinations are valid for six months. If more than six months elapse between the initial determination and the provision of HOME assistance, family income must be reexamined. Note how this timeframe differs from most other programs, which limit the age of income verifications to 120 days. Adjusted Income Calculations Participating jurisdictions must calculate adjusted income in three specific scenarios: For families receiving tenant-based rental assistance For tenants living in Low HOME Rent units subject to particular provisions. For over-income tenants requiring rent recalculation Special Considerations Participating jurisdictions are not required to calculate adjusted income independently for units assisted by federal or state project-based rental subsidy programs. Instead, they should accept the determination made by the public housing agency, owner, or rental subsidy provider under that program's rules. This comprehensive framework ensures consistent and accurate income determination across HOME program participants while providing flexibility to accommodate various housing assistance scenarios. Special Requirements for Small-Scale Rental Housing A small-scale rental project is a rental housing project comprising no more than four units. This includes single and scattered projects, as long as the total number of units does not exceed four. The definition is intended to provide flexibility and reduce administrative burdens for smaller rental housing developments while ensuring compliance with HOME program requirements. For small-scale housing, the final rule provides exceptions to the requirement for annual re-examinations of tenant income. Instead of annual re-examinations, tenant income must be re-examined according to the following schedule: Initial income determination must be conducted using source documents or a written statement from a government administrator. Triennial income re-examinations: Tenant income must be re-examined every three years during the affordability period. Sixth-year re-examination: A complete income re-examination using source documents must be conducted every sixth year of the affordability period. Additional re-examinations for projects with longer affordability periods: Year 9: For projects with a period of affordability greater than 5 years. Year 12: For projects with a period of affordability greater than 10 years. Year 15: For projects with a period of affordability of 20 years. Year 18: For projects with a period of affordability of 20 years. These exceptions aim to reduce the administrative burden on participating jurisdictions and owners while ensuring compliance with HOME program requirements.

Navigating the HOME Final Rule- Key Updates on Property Standards and Inspections

The U.S. Department of Housing and Urban Development (HUD) recently updated the HOME Investment Partnerships Program (HOME) Final Rule, emphasizing enhanced property standards and inspection requirements for participating jurisdictions (PJs). These updates aim to improve safety, accessibility, energy efficiency, and disaster resilience across affordable housing projects. New Construction Projects For new construction projects under the HOME program, the following standards are essential: Accessibility Compliance: Projects must comply with the design and construction requirements of 24 CFR part 8, Titles II and III of the Americans with Disabilities Act (ADA), and the Fair Housing Act. Energy Efficiency: Compliance with energy standards such as ASHRAE Standard 90.1-2019 for high-rise multifamily buildings and the 2021 International Energy Conservation Code for single-family and low-rise multifamily buildings is mandatory. Disaster Mitigation: New constructions must incorporate features that mitigate future disaster risks in alignment with state and local codes. Detailed Documentation: Construction contracts and documents must be sufficiently detailed to facilitate inspections. Broadband Infrastructure: Broadband installation is required for projects with more than four rental units unless it poses significant financial or logistical challenges. Detection Systems: Carbon monoxide and smoke detection systems must comply with HUD standards. Rehabilitation Projects Rehabilitation projects are subject to the following requirements: Code Compliance: All projects must meet applicable state and local codes or, in their absence, HUD s minimum property standards. Disaster Preparedness: Measures to mitigate future disaster impacts are mandatory. Inspection Documentation: As with new construction, detailed contracts and documents must support the inspection process. Detection Systems: Carbon monoxide and smoke detection systems are required, with allowances for battery-powered smoke alarms in specific cases. Green Building Standards: If the project's cost exceeds the maximum per-unit subsidy limit, it must meet green building standards. Acquisition of Existing Housing For existing housing acquisitions, specific standards apply: Recent Construction or Rehabilitation: Properties built or rehabilitated within 12 months before commitment must meet the respective standards. Safe and Sanitary Conditions: Homes intended for homeownership must be decent, safe, and sanitary, with inspections conducted no earlier than 90 days before commitment. Timely Compliance: Properties must meet standards at purchase or within six months of acquisition, which can be extended to 12 months if necessary. Combination Projects Combination projects that include rehabilitation and new construction must apply the respective standards to each component. Ongoing Property Condition Standards and Inspections To maintain compliance throughout the affordability period, ongoing requirements include: Code Adherence: Properties must meet state and local codes and HUD standards. Detection Systems: Carbon monoxide and smoke detection systems remain mandatory. Inspection Frequency:Initial and annual inspections for tenant-based rental assistance units.On-site inspections within 12 months of project completion and every three years thereafter. Increased inspection frequency for properties with health and safety deficiencies. Acceptance of Alternative Inspections: Inspections under other HUD programs or HUD-approved standards may be accepted. Inspection Procedures To ensure consistency and thoroughness, inspection procedures must include: Detailed Checklists: Inspection checklists and process descriptions. Training: Training and certification protocols for inspectors. Sampling Standards:At least four units must be inspected for projects with up to 20 HOME-assisted units.For projects with 21-130 units, 20% must be inspected. For larger projects, inspection sampling aligns with the NSPIRE methodology. Small-Scale Housing: Streamlined requirements for projects with 1-4 units to reduce administrative burdens. Conclusion The updated HOME Final Rule provides a robust framework to enhance the quality, safety, and sustainability of affordable housing projects. By adhering to these comprehensive standards and inspection protocols, participating jurisdictions can ensure that housing remains affordable, resilient, and livable for years to come.