2026-08406Proposed RuleSignificantWallet

HUD Greenlights Easier Rules for Eco-Homes and Mobile Rentals

Published Date: 4/30/2026

Proposed Rule

Summary

HUD is updating the HOME Investment Partnerships Program to make it simpler and more flexible, especially for green building projects and scattered site manufactured housing rentals. These changes affect local housing groups that get federal money to build or fix affordable homes. Public comments are open until June 1, 2026, so folks can share their thoughts before the new rules take effect.

Analyzed Economic Effects

12 provisions identified: 5 benefits, 3 costs, 4 mixed.

No Extra 10% Green Subsidy

HUD proposes to remove the HOME Final Rule provision (24 CFR 92.250(c)) that would have allowed participating jurisdictions to exceed the HOME maximum per-unit subsidy by 10 percent for projects meeting certain green building standards. This proposed removal would eliminate the previously adopted option to increase per-unit HOME investment for green projects.

Immediate Fixes Only for Life-Threatening Defects

HUD proposes to change HOME rules so that immediate correction and a more frequent inspection schedule apply only to life-threatening deficiencies (not all "health and safety" deficiencies). Property owners would still correct other deficiencies but could use a longer timeframe except for life-threatening problems.

New Definition for Scattered-Site Manufactured Housing

HUD proposes to add a definition for "scattered site manufactured housing rental project" (individually leased manufactured units owned by a single owner) and to allow streamlined monitoring and other flexibilities for projects that meet that definition. HUD says the change is intended to reduce costs and encourage the use of manufactured housing.

Income Checks Only Every 3 Years for Some Tenants

HUD proposes to allow triennial (every 3 years) income examinations for occupants of scattered site manufactured housing rental projects instead of the more frequent checks currently required by Sec. 92.252. This change is meant to reduce management costs and encourage use of manufactured housing in HOME projects.

Removing 'Unreasonable Interference' Tenant Rule

HUD proposes to remove the HOME Final Rule's new prohibition on "unreasonable interference" with a tenant's safety or peaceful enjoyment and the related anti-retaliation test that was in 24 CFR 92.253(b)(5) and (c)(5). That regulatory test had no statutory basis, HUD says.

No Mandatory Tenant Relocation During Repairs

HUD proposes to remove the HOME Final Rule requirement that owners must relocate tenants at no cost if life-threatening repairs cannot be completed the same day (24 CFR 92.253(b)(1)(iii)). Instead, owners would not be automatically required to provide relocation at no cost.

Revert Voucher Acceptance to Statutory Scope

HUD proposes to reverse the HOME Final Rule expansion that required owners to accept holders of all Federal, State, and local tenant-based rental assistance. HUD would return to the statutory interpretation that prohibits denying holders of Housing Choice Vouchers (Section 8) but does not require acceptance of all other programs.

Alternative Tenant Selection Allowed

For scattered site manufactured housing rental projects, HUD proposes to permit participating jurisdictions to use an alternative to a written chronological waiting list for tenant selection (the same flexibility HUD allowed for small-scale housing).

Remove New Notice Requirements

HUD proposes to remove HOME Final Rule notice requirements such as mandatory notices to tenants about changes in ownership or property management and notices about environmental, health, or safety hazards that HUD had added. HUD says these notices create potential liability and limited tenant benefit.

No Mandatory Tenancy Addenda or Lease Contact Info

HUD proposes to decline the HOME Final Rule's new requirement that each tenant lease include a tenancy addendum and contact information for owner, property management, and participating jurisdiction. HUD would defer those choices to owners and participating jurisdictions.

Tenants Only Owe Court Costs If Ordered

HUD proposes to keep the HOME Final Rule addition to 24 CFR 92.253(b)(8) that adds the words "and the court so orders," so a tenant would only be charged court costs if a court has ordered those costs.

Carbon Monoxide Detector Standard Added

HUD proposes to require that HOME-assisted housing units have carbon monoxide detectors installed in a manner that meets or exceeds chapters 9 and 11 of the 2018 International Fire Code. This aligns HOME with other HUD program inspection requirements.

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Key Dates

Effective Date
Published Date
Comments Due
5/29/2024
4/30/2026
6/1/2026

Department and Agencies

Department
Independent Agency
Agency
Housing and Urban Development Department
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