HUD Rolls Out Clearer Rules for Inspecting Funded Affordable Homes
Published Date: 4/14/2026
Notice
Summary
HUD is rolling out new, clear rules for inspecting homes funded by the HOME and Housing Trust Fund programs to make sure they’re safe and in good shape. These changes affect local groups and grantees who manage these homes, giving them more time—until April 2027—to meet the new standards. The goal? Better homes for everyone, with inspections that are easier to follow and fairer for all involved.
Analyzed Economic Effects
8 provisions identified: 1 benefits, 2 costs, 5 mixed.
New Minimum Habitability Requirements
HOME- and HTF-assisted housing must meet NSPIRE-based minimum standards (24 CFR 5.703) including items such as: working smoke detectors, GFCI outlets within six feet of water, guardrails for drops of 30 inches or more, permanently mounted lighting in kitchens and bathrooms, hot and cold running water, working bathroom fixtures, and a kitchen area with sink and cooking/refrigeration where applicable. These affirmative requirements are pass/fail on inspections for applicable HOME and HTF projects.
Energy Code Requirement for New Construction
HOME- and HTF-assisted new construction projects with commitment dates on or after November 24, 2024 must meet the 2021 IECC or ASHRAE 90.1-2019 energy codes (or an HUD-approved alternative compliance path). If another funder imposes a later compliance date, the participating jurisdiction may use that later date.
Capital Needs Assessments for Large Multifamily
For multifamily rental projects of 26 units or more, participating jurisdictions and grantees must require a Capital Needs Assessment (CNA) to determine long-term needs for major systems and to set replacement reserves if remaining useful life is shorter than the period of affordability. CNA costs may be charged as administrative costs or project soft costs.
Compliance Delay and Grandfathering
HUD extended the compliance date so participating jurisdictions and HTF grantees have until April 14, 2027 to meet the new NSPIRE-based standards. Projects with written agreements executed before that compliance date may continue following the previous HOME and HTF standards instead of the new rules.
Smoke and Carbon Monoxide Rules for HOME
For HOME commitments made on or after April 20, 2026, projects must include carbon monoxide alarms and hardwired smoke alarms: on each level, in/near each sleeping area, in basements and project common areas, within 21 feet of bedroom doors, and with alarms designed for hearing-impaired persons. If hardwiring is infeasible or an undue financial burden, a sealed 10-year non-replaceable battery smoke detector may be allowed with a written exception.
Single Room Occupancy (SRO) Unit Exceptions
SRO housing is only required to meet unit affirmative requirements to the extent components exist in the unit. If an SRO unit lacks a kitchen or sanitary facility as permitted by HOME/HTF rules, those specific NSPIRE unit requirements do not apply to that unit. If those components do exist in an SRO unit, the NSPIRE standards apply to them.
Lead-Based Paint Rules Continue for Pre-1978 Housing
All 'target housing' (generally housing built before 1978) assisted with HOME or HTF remains subject to the lead-based paint requirements at 24 CFR part 35 and applicable EPA rules; NSPIRE did not change these lead-based paint obligations.
Broadband Infrastructure Requirement for New Multifamily
For HOME or HTF new construction or substantial rehabilitation multifamily rental projects with commitments after January 19, 2017, installation of broadband infrastructure is required unless the participating jurisdiction documents infeasibility, undue financial burden, or structural infeasibility.
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