24 C.F.R. § 92.451
§ 92.451 Reallocation of HOME funds from a jurisdiction that is not designated a participating jurisdiction or has its designation revoked. (24 CFR Part 92)
Operative Text
(a) Failure to be designated a participating jurisdiction. HUD will reallocate, under this section, any HOME funds allocated to or reserved for a jurisdiction that is not a participating jurisdiction if: (1) HUD determines that the jurisdiction has failed to: (i) Meet the participation threshold amount in § 92.102; (ii) Provide notice of its intent to become a participating jurisdiction in accordance with § 92.103; or (iii) Submit its consolidated plan, in accordance with 24 CFR part 91; or (2) HUD after providing for amendments and resubmissions in accordance with 24 CFR part 91 disapproves the jurisdiction's consolidated plan. (b) Designation revoked. HUD will reallocate, under this section, any funds remaining in a jurisdiction's HOME Investment Trust Fund after HUD has revoked the jurisdiction's designation as a participating jurisdiction under § 92.107. (c) Manner of reallocation. HUD will reallocate funds that are subject to reallocation under this section in the following manner: (1) If the funds to be reallocated under this section are from a State, HUD will: (i) Make the funds available by competition in accordance with criteria in § 92.453 among applications submitted by units of general local government within the State and with preference being given to applications from units of general local government that are not participating jurisdictions, and (ii) Reallocate the remainder by formula in accordance with § 92.454. (2) If the funds to be reallocated are from a unit of general local government: (i) Located in a State that is participating jurisdiction, HUD will reallocate the funds to that State. The State, in distributing these funds, must give preference to the provision of affordable housing within the unit of general local government; or (ii) Located in a State that is not a participating jurisdiction, HUD will reallocate the funds by competition among units of general local government and community housing development organizations within the State, with priority going to applications for affordable housing within the unit of general local government; and reallocate the remainder by formula in accordance with § 92.454.
Under 24 CFR Part 92 § 92.451, HUD is authorized to pull back HOME program funds that were allocated to a jurisdiction when that jurisdiction fails to meet certain participation requirements—such as reaching the minimum funding threshold, notifying HUD of its intent to participate, or submitting an approvable consolidated plan. Similarly, if a jurisdiction's participating-jurisdiction status is formally revoked under § 92.107, any remaining funds in its HOME Investment Trust Fund are subject to reallocation. The method HUD uses to redistribute those funds depends on whether the original recipient was a state or a local government, with different competitive and formula-based processes applying to each scenario.
Plain English — not legal advice.
Property owners and developers who rely on HOME-funded programs administered by a state or local participating jurisdiction should be aware that 24 CFR Part 92 § 92.451 gives HUD authority to redirect those funds if the jurisdiction loses its participating status. A compliant operator generally monitors the status of the jurisdictions through which their projects are funded and maintains documentation of any HOME-assisted commitments in case funding sources shift. When reallocation occurs, funds tied to local governments within a participating state are redirected to that state, which is then required to prioritize affordable housing within the original locality—a factor that can affect project timelines and funding availability.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Tenants living in or seeking affordable housing supported by HOME funds should know that 24 CFR Part 92 § 92.451 can result in funding being redirected away from their local government if that government fails to meet federal participation requirements. When this happens, the reallocation process includes provisions designed to preserve a priority for affordable housing within the affected community, which may help protect the availability of assisted units. Tenants who have concerns about how a reallocation may affect their housing can reach out to a local tenant-rights organization, a HUD-approved housing counseling agency, or their state's housing finance agency for general information about how HOME funds are being administered in their area.
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.
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