HUD Proposes New Methodology for HOME Program Subsidy Limits
Published Date: 4/10/2026
Notice
Summary
HUD is updating how it sets the maximum money allowed per housing unit for the HOME Investment Partnerships Program. This change affects builders and developers using HOME funds starting May 11, 2026, and HUD wants your thoughts before finalizing it. The new limits help make sure funds stretch fairly and wisely to build affordable homes.
Analyzed Economic Effects
2 provisions identified: 0 benefits, 1 costs, 1 mixed.
Per‑Unit Subsidy Cap Set at 240%
HUD is establishing the HOME program maximum per‑unit subsidy limit as 240 percent of the basic mortgage limitations for section 234 of the National Housing Act for condominium (elevator‑type) projects. HUD states it is maintaining the existing 240 percent policy because allowing higher per‑unit spending would result in fewer affordable housing units, and HUD believes keeping 240 percent is consistent with the statute.
Concrete 2025 Per‑Unit Dollar Limits
HUD publishes the 2025 HOME maximum per‑unit subsidy dollar limits (based on 240% of the 2025 Section 234 elevator statutory limits): 0‑bedroom $187,658; 1‑bedroom $215,122; 2‑bedroom $261,595; 3‑bedroom $338,419; 4‑bedroom $371,477. These limits apply to projects for which HOME funds are committed on or after May 11, 2026.
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