24 C.F.R. § 93.50
§ 93.50 Formula allocation. (24 CFR Part 93)
Operative Text
(a) Allocations to States. HUD will provide to the States allocations of funds in amounts determined by the formula described in this part. (b) Amount available for allocation. The amount of funds available for allocation by the formula is the balance remaining after providing for other purposes authorized by Congress, in accordance with the Act and appropriations. (c) Allocations for the insular areas. The allocation amount for each insular area is determined by multiplying the funds available times the ratio of renter households in each insular area to the total number of renter households in the 50 States, the District of Columbia, the Commonwealth of Puerto Rico, and the insular areas. (d) Allocations for the 50 States, the Commonwealth of Puerto Rico, and the District of Columbia—(1) Amounts available for allocations. The amount of funds that is available for allocation by the formula to the 50 States, the Commonwealth of Puerto Rico, and the District of Columbia is determined using the most current data available from the U.S. Census Bureau that is available for the same year for all these geographic areas. The amount is equal to the balance of funds remaining after determining formula allocations for the insular areas under § 93.50(c). For purposes of paragraphs (d)(1) and (2) of this section, the term “State” means any of the 50 United States, the Commonwealth of Puerto Rico, and the District of Columbia. (2) Allocations. (i) Allocations to the States are determined using the four needs factors described in § 93.51(a) through (d), multiplying each factor by the amount available under § 93.51(d)(1) by its priority weight, and summing the four factors for each State. (ii) The factor described in § 93.51(a) is weighted 0.5. The factors described in § 93.51(b) and (d) are weighted at 0.125 and the factor described in § 93.51(c) of this section is weighted at 0.25. (iii) The sum of the four needs factors for each State is then multiplied by the construction cost factor described in § 93.51(e) of this section and by the total amount of funds available for State allocations.
Under 24 CFR Part 93 § 93.50, federal HOME Investment Partnerships Program funds designated for affordable housing are distributed to states, territories, and insular areas through a formula-based allocation process administered by HUD. Insular areas receive a share proportional to their renter-household population relative to the broader national count. The remaining funds flow to the 50 states, Puerto Rico, and the District of Columbia based on four weighted housing-need factors drawn from Census Bureau data, with the resulting figure then adjusted by a local construction cost factor.
Plain English — not legal advice.
Property owners and developers who participate in HOME-assisted projects should understand that the volume of funding available in any given state is shaped by the formula set out in 24 CFR Part 93 § 93.50, not by discretionary decisions at the local level. Because allocations reflect renter-household counts, housing-need indicators, and construction costs, the total pool a state administering agency has to work with can shift from cycle to cycle as Census data is updated. Operators who regularly pursue HOME funds generally monitor their state's participating jurisdiction announcements to anticipate funding availability.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
For renters, 24 CFR Part 93 § 93.50 is the provision that determines how much HOME Program money each state receives to fund affordable housing development and rental assistance activities. Because the formula weighs housing-need factors, jurisdictions with greater documented need may receive proportionally larger allocations, which can influence the supply of income-restricted rental units available locally. Tenants seeking to understand how these funds are used in their area can contact their state or local housing agency, review HUD's publicly posted allocation data, or reach out to a tenant-rights or housing-advocacy organization for context.
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 3, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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