HOME Reform Act of 2025
Sponsored By: Representative Rep. Flood, Mike [R-NE-1]
Introduced
Summary
Expands HOME program flexibility and eligibility. This bill would align income limits and broaden allowable uses so more households and communities can use HOME funds for housing and related infrastructure.
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- Families and renters: Households up to 100% of area median income (AMI) would become eligible across multiple HOME authorities. Rental units occupied by tenants with tenant-based Section 8 assistance would explicitly qualify with rent and tenant payments capped to Section 8 rules.
- Homebuyers and long-term stewards: Homeownership eligibility would increase from 95% to 110% of AMI. The bill would allow long-term affordability tools like shared equity, community land trusts, limited-equity cooperatives, community development corporations, purchase options, and rights of first refusal.
- Local governments and developers: Participating jurisdictions would gain new flexibility to use HOME funds for infrastructure in nonentitlement areas and the bill would remove a separate per-unit investment limit. It raises the labor-standard exemption from 12 to 24 units, creates environmental-review exemptions for certain small or infill projects, and requires HUD to issue implementing rules within one year.
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Bill Overview
Analyzed Economic Effects
7 provisions identified: 7 benefits, 0 costs, 0 mixed.
More families qualify up to 100% AMI
If enacted, the listed HOME Title II help would use a clear income limit of 100% of area median income. Families at or below the local AMI (adjusted for family size) could qualify. This replaces less clear “low-income” references in those provisions.
HOME funds for nearby infrastructure
If enacted, places that do not get Title I money could use HOME funds for water, sewer, sidewalks, roads, and utility hookups next to HOME- or LIHTC-assisted housing. HUD would need to issue rules within one year. Housing that only benefits from these improvements would not be treated as HOME-assisted.
More homeowners can qualify and keep help
If enacted, more buyers could qualify for HOME-backed ownership help, with the income cap raised to 110% of area median income. Local programs could use shared equity, land trusts, and co-ops to keep homes affordable long term. A home could keep its affordable status if an heir lives there and takes on the owner’s duties. Jurisdictions could suspend or waive income rules for military owners with qualifying deployment or permanent change of station orders.
Voucher rentals count as affordable units
If enacted, a unit with a Section 8 voucher tenant could count as affordable under HOME. The tenant’s share must follow voucher rules, and total rent must be within the housing agency’s approved amount.
Fewer federal rules on small projects
If enacted, HOME-assisted projects would be exempt from Build America, Buy America rules. Projects with 50 or fewer units could be exempt from Section 3 hiring rules if funds go to a State recipient or a jurisdiction that got under $3,000,000 last year. Labor standards would apply only to projects with 24 or more units, not 12.
Faster reviews for small, infill housing
If enacted, HUD could skip some environmental reviews for infill new builds, certain rehab, small new projects (15 units or fewer), and land buys for affordable housing. HUD would also avoid repeating reviews when a project has not materially changed. The law would define “infill housing project” as small (up to 5 acres), in a city, on previously disturbed land, served by utilities, and mostly surrounded by development. HUD would issue rules within one year.
More flexible local HOME funding rules
If enacted, unused CHDO-reserved funds sitting 24 months could be recaptured and given back to the local program for any eligible use. The deadline to draw HOME Investment Trust funds would be removed. HUD could not add extra limits on using funds unless Congress allows it. One sentence in the per‑unit investment limit would be removed, adding flexibility. A technical percentage used for asset recycling would increase from 95% to 110%.
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Sponsors & CoSponsors
Sponsor
Rep. Flood, Mike [R-NE-1]
NE • R
Cosponsors
Rep. Cleaver, Emanuel [D-MO-5]
MO • D
Sponsored 10/21/2025
Roll Call Votes
No roll call votes available for this bill.
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