You can't do that anymore, and it was never a good idea in the first place, because a home directory is used for data about the user (mail, configuration files, logs, etc) in addition to data owned by the user (web site files).
If you intention is to provide the new user with a *virtual subdirectory on the web site, then what you want to do is this:
1. Create the user
2. Login to FTP as the new user and make a subdirectory, eg "web_files"
3. In Control Panel, use Domains -> Re-map Subdir to map the URL to the subdirectory you just made.
4. Tell the other person to upload web-accessible files to the "web_files" directory.
5. If you need to manage the files, login to FTP as that user and not as your initial user.
This way, say for example you made the URL use the same name as the subdirectory:
Login to FTP as initial user to upload files for "http://example.com/"
Login to FTP as second user to upload files for "http://example.com/web_files/"
*HTTP URLs have a path component that suggests a hierarchy but does not necessarily have to reflect the structure of the file system; eg search engine-friendly URLs that take advantage of mod_rewrite. Re-map Subdir takes advantage of the web server's Alias directive.
Perl / MySQL / HTML+CSS