Fiscal Year 2013 HOME Investment Partnerships Program Formula Allocations

The City of Champaign received a slight decrease in FY 2013/14 funding ($266,521) from the anticipated budget estimate of $273,901. The final and the estimate were reductions compared to the FY 2012/13 allocation of $298,367. The following information from HUD provides an explanation of the funding allocation. Champaign receives the HOME funds from the Urbana HOME Consortium. Staff has lowered the Neighborhood Revitalization activity by an additional $7,380 to account for the additional reduction.

The FY 2013 HOME appropriation of $1 billion was reduced by 5.1 percent due to sequestration and then by another 0.2 percent as a result of an across the board rescission. The result was a HOME formula amount of $947 million. However, nearly $17 million was added back into the formula from funds recaptured from participating jurisdictions (PJs) that failed to meet HOME deadline requirements or that requested voluntary grant reductions in lieu of repayment for ineligible activities. Therefore, the HOME formula was run at $964 million. For FY 2013, there are 641 HOME PJs comprised of 52 states, 4 Insular Areas, and 585 local PJs including 142 consortia. 

Most PJs (426, 66%) experienced a decrease in their HOME allocation for FY 2013 due to sequestration; however many PJs’ (209 or 33%) allocations actually increased due to the use of 2006-2010 ACS data, which is weighted on the 2010 Census population and household numbers. In FY 2012, HUD used 2005-2009 ACS data which was weighted on 2010 Census population and household numbers. 

Because the HOME formula consists of six separate factors, the impact of the source data used may change the formula results for any or all of the formula factors, resulting in an increase or decrease in formula allocation when compared to allocations using previous data sources. For more information on HOME formula factors, see 24 CFR § 92.50(c).