HR 5798119th CongressIn Committee

HOME Reform Act of 2025

Introduced: Oct 21, 2025

Sponsor: Rep. Flood, Mike [R-NE-1] (R-Nebraska)

Standard Summary

Comprehensive overview in 1-2 paragraphs

The HOME Reform Act of 2025 would significantly reshape the HOME Investment Partnerships program by broadening who qualifies for assistance, expanding how and where housing can be built, and speeding up project approvals. Key changes include allowing more families to access HOME funds by tying eligibility to 100 percent of area median income (AMI) for rental and homeownership activities (with a future 110 percent AMI threshold for affordable ownership), creating an explicit infill housing category, enabling infrastructure investments in nonentitlement areas that support housing, and easing environmental and administrative requirements for smaller projects. The bill also strengthens safeguards to maintain long-term affordability (through shared equity and related tools), expands exceptions for military members and heirs, and provides greater funding flexibility (e.g., recapture rules, asset recycling, and exemptions from certain federal procurement and small-project requirements). In short, the bill aims to accelerate the production and preservation of decent, safe, and affordable rental and ownership housing by broadening eligibility, reducing regulatory barriers, and expanding the set of tools jurisdictions can use to finance and sustain affordable homes.

Key Points

1Expands eligibility and affordability thresholds
2- For HOME-assisted housing, eligible families are defined as those with household incomes not exceeding 100 percent of the area median income (AMI), with adjustments for family size.
3- For affordable homeownership, the income qualifier increases to 110 percent of AMI, and the bill requires long-term affordability through mechanisms like shared equity, community land trusts, or similar tools.
4Broadens where and how projects can be built and funded
5- Adds an explicit definition of “infill housing project” to promote development within municipalities on previously disturbed land (up to 5 acres) that is well-served by utilities and surrounded by development.
6- Allows HOME funds to be used for infrastructure improvements in nonentitlement areas (e.g., water/sewer, sidewalks, roads) if linked to housing assisted under HOME or Section 42 of the Internal Revenue Code; removes per-unit investment limits in some contexts.
7Increases flexibility for rental and ownership programs
8- Adds an affordable housing qualification for rental units occupied by tenants receiving tenant-based Section 8 assistance, with rent contributions and total unit rents aligned to Section 8 caps.
9- Adds permissible exceptions for military members and heirs to maintain affordability or allow continued eligibility after ownership transfer, including temporary deployment-related waivers and protections for heirs of deceased owners.
10Environmental review and regulatory simplification
11- Creates categorical exemptions from National Environmental Policy Act (NEPA) review for certain HOME activities (e.g., infill new construction, acquisitions, rehabilitation, small projects of 15 units or fewer).
12- Encourages coordination to avoid duplicative environmental reviews and recognizes prior reviews by designated agencies or entities with equivalent authority.
13Funding, oversight, and accountability flexibilities
14- Removes expiration of the right to draw HOME Investment Trust funds (making funds available longer).
15- Updates recapture and reuse provisions to allow uninvested funds to be used by the jurisdiction for any eligible HOME activities after a defined period.
16- Expands asset recycling and information dissemination on asset reuse, increasing efficient use of HOME resources.
17- Extends exemptions relating to Build America, Buy America and other small-project provisions (e.g., small projects under certain unit counts) to streamline implementation and reduce compliance burdens.
18- Applies technical amendments (e.g., updating committee references and homelessness act name) to align with current law.

Impact Areas

Primary affected groups/areas- Renters and potential homebuyers with incomes up to 100 percent (and, for ownership, up to 110 percent) of AMI, broadening access to affordable housing options.- Jurisdictions (particularly nonentitlement/nonmetro areas) seeking to pursue infill development and infrastructure-linked housing projects.- People in households relying on Section 8 rental assistance, who would see units count toward HOME affordability standards.Secondary groups/areas affected- Housing developers, community housing development organizations (CHDOs), and public housing authorities, which would gain more flexible financing approaches, affordability tools, and streamlined processes.- Military families and heirs to deceased homeowners, who receive targeted affordability protections and exceptions to income qualifications.Additional impacts- Potential increase in housing supply and preservation of affordability through long-term tools (shared equity, CLTs, etc.), but with a greater emphasis on serving households at or near the AMI.- Regulatory simplifications could reduce project timelines and administrative burdens, encouraging faster delivery of affordable units.- Nonentitlement rural or smaller jurisdictions could leverage HOME funds for essential infrastructure tied to housing, potentially spurring broader community development.- Some concerns may include the broader eligibility (100% AMI and up to 110% for ownership) potentially expanding program costs and requiring careful targeting to ensure funds serve the intended low- and moderate-income populations.

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