(1) Expand the supply of decent, safe, sanitary and affordable housing, with special attention to rental housing, for very low-income and low-income Pennsylvanians.

(2) Help mobilize and strengthen the abilities of units of local government and nonprofit organizations to design and implement strategies for achieving an adequate supply of decent, safe, sanitary and affordable housing and to help them deal with the most critical housing needs within their communities.

(3) Increase the investment of private capital and the use of private sector resources in the provision of decent, safe, sanitary and affordable housing.

(4) Help ensure that public investment produces housing stock that remains available and affordable to very low-income and low-income families, is appropriate to the neighborhood surroundings and, wherever appropriate, is mixed-income housing.

(1) In general, Federal funds made available under the HOME program and the HOME fund may be used to provide incentives to develop and support affordable rental housing and homeownership affordability through the acquisition, new construction, reconstruction or moderate or substantial rehabilitation of affordable housing, including real property acquisition, site improvement, conversion, demolition and other expenses, including financing costs, relocation expenses or any displaced persons, families, businesses or organizations, and to provide tenant-based rental assistance. Eligible uses of these funds shall be based on NAHA, regulations and amendments thereto.

(2) Preference shall be given to rehabilitation of substandard housing unless it is determined that:

(3) Funds will be targeted to those programs and projects which serve very low-income and low-income persons as defined within the NAHA and in accordance with the applicable CHAS.

(1) There is hereby established a separate account in the State Treasury to be known as the HOME Investment Trust Fund, which shall be a special fund administered by the department.

(2) All funds received by the Commonwealth from the Federal Government for the purpose of this act shall be deposited, and any return of funds to the Commonwealth under this act and any interest earned or other return on moneys in this fund be deposited and retained by the fund. In addition, any State and local funds required by NAHA to be used for matching purposes may be deposited into this special fund.