to purchase the housing unit for an affordable price. Site acquisition or improvement – In this type of activity, HOME funds may be used to purchase property which will later be developed as affordable housing unit. This activity also covers the improvement and rehabilitation of current affordable housing. Community Housing Development Organizations (CHDOs) – In this type of activity, governments may provide funds to non-profit organizations which are dedicated to providing housing to impoverished or low-income families, including building housing projects similar to public housing projects, providing housing to the homeless, developing affordable housing communities, among others. Among these eligible activities, HUD has specified that governments can use funds to carry out "other reasonable and necessary expenses related to the development of non-luxury housing." The final recipients, otherwise known as beneficiaries (e.g. citizens), must be, for the most part, low-income families. HUD has designed a general formula for which all governments must comply with when providing HOME funds to citizens, which is that the incomes of families receiving HOME assistance or funds in a specific area (city, county, etc.) must not exceed 80 percent of the area's family income median or average. In other words, if say HUD determines that a local area's median income is $25,000, then the HOME funds awarded in that area should only benefit those families with incomes less than, or equal to, 80% of $25,000 (or $20,000). HUD publishes the area median incomes plus the 80% income limits every year in its website. Administration The program is conducted by non-federal US governmental jurisdictions, such as states, cities, urban counties, and so forth, that receive an allocation of federal benefits from HUD. All U.S. states are automatically eligible for HOME funds, and each receives a minimum of $3 million for the program, while local governments receive a minimum of $500,000 (unless the United States Congress assigns $1.5 billion or less to the program, in which case they receive a minimum of $335,000). However, federal regulations require that every single government that receives funds must provide 25 cents on their own for every HOME dollar used. In other words, if for example a state plans to use $1 million of HOME funds during the year, HUD will provide $750,000 (75%) while the State has to provide $250,000 (25%) for the program to achieve the $1 million in assistance goal. This compliance requirement is known as "matching", and