Please if anyone can help, I am trying to clarify an issue with program income. I looked up the definition of program income in 92.503, which was helpful and which I have posted below. But what if restrictions are still on the property? Does this matter? Does this definition assume that the affordability restrictions are eliminated? Also, does the fact that HOME funds were used strictly for acquisition make any difference?
Program Income, Repayments, and Recapture Funds [92.503]
Program Income Defined
• Program income is the income received by a PJ,
state recipient, or subrecipient directly generated
from the use of HOME funds or matching
contributions. Program income includes, but is not
Proceeds from the sale or long-term lease of real
property acquired, rehabilitated, or constructed
with HOME funds or matching contributions;
Income from the use or rental of real property owned by a PJ, state recipient, or subrecipient that was acquired, rehabilitated, or constructed with HOME funds or matching contributions, minus the costs incidental to generating that income;
Payments of principal and interest on loans made with HOME or matching funds, and proceeds from the sale of loans or obligations secured by loans made with HOME or matching contributions;
Interest on program income; and
Any other interest or return on the investment of HOME and matching funds.
• Program income derived from consortium activities remains consortium program income – even if those activities were carried out in, or by, a jurisdiction that has left the consortium.