“A bill to reauthorize the HOME Investment Partnerships Program, and for other purposes.”
No CRS summary available for this bill.
This section cites the Act as the “HOME Investment Partnerships Reauthorization and Improvement Act of 2025” and sets forth the table of contents.
This section reauthorizes appropriations to carry out Title II of the Cranston-Gonzalez National Affordable Housing Act (i.e., HOME Investment Partnerships Program, which provides formula grants to states and localities for the development and rehabilitation of affordable rental and homeownership housing) as follows: (1) $5 billion for FY2025; (2) $5.25 billion for FY2026; (3) $5.5125 billion for FY2027; (4) $5.788 billion for FY2028; and (5) $6.078 billion for FY2029 (previously, $2.086 billion for FY1993 and $2.174 billion for FY1994, with specified set-asides).
This section increases the maximum amount of HOME Investment Partnerships Program funds that participating jurisdictions may use for administrative and planning costs to 15% (from 10%). It further revises program matching contribution recognition requirements in two ways: (1) streamlining the introductory text of section 220(b); and (2) striking paragraph (2) thereof.
This section modifies the eligibility threshold for units of general local government to qualify as participating jurisdictions under the HOME Investment Partnerships Program (i.e., formula grants to states and localities for affordable housing production, rehabilitation, and tenant-based assistance). Specifically, it (1) retains the $750,000 formula allocation threshold but subjects it to annual inflation adjustment by the Secretary for each fiscal year after FY2025 (previously fixed at $750,000) and eliminates the alternative qualification process for jurisdictions below the threshold that involved a local housing authority, demonstrated capacity, and state funding transfers or local matching funds to reach $750,000; and (2) strikes paragraph (10), which provided an exception to eligibility requirements. It also makes minor conforming changes to paragraph (6) to clarify compliance requirements.
This section modifies eligibility criteria for jurisdictions receiving reallocations of funds under the HOME Investment Partnerships Program (HOME)—which provides formula grants to states and localities for the production, rehabilitation, and tenant-based rental assistance of affordable housing for low-income households—by (1) specifying that such jurisdictions include participating jurisdictions and those meeting applicable title requirements, including section 216(3), (4), and (5), subject to paragraph (3)(A); and (2) authorizing the Secretary to remove participating jurisdictions that fail to meet or comply with title requirements from reallocation eligibility while retaining prior limitations on reallocating to the same type of entity.
This section revises qualification standards for affordable housing under the HOME Investment Partnerships Program (i.e., formula grants to states and localities for rental and homeownership housing development and rehabilitation) as follows: (1) in the rental housing affordability commitment, adds an exception permitting termination if existing housing is no longer financially viable due to unforeseen acts or occurrences beyond the control of the participating jurisdiction or owner that significantly affect its financial or physical condition, as determined by HUD; (2) establishes alternative, streamlined qualification requirements for small-scale rental housing (i.e., not more than 4 units), which waive the 20% very-low-income occupancy requirement but retain limits on rents, low-income occupancy, voucher acceptance, affordability commitments, and monitoring; and (3) increases the homeownership cost limit to 110% of area median purchase price for a family of four (from 95%), or a higher percentage set by the Secretary.
This section eliminates the requirement that participating jurisdictions under the HOME Investment Partnerships Program place funds in their HOME Investment Trust Fund under binding commitment to affordable housing within 24 months after deposit, or forfeit the right to draw such funds. It further removes expired funds from line-of-credit reductions under subsection (c), redesignates the administrative status-reporting provision as subsection (g), and makes conforming amendments to subsection (c) including a cross-reference correction from "section 224" to "section 223".
This section revises the qualification criteria for homeownership housing under the HOME Investment Partnerships Program (i.e., formula grants to states and localities for developing affordable housing for low-income families). It restructures subsection (b), strikes paragraph (3), and requires such housing to be subject to resale restrictions established by the participating jurisdiction and approved by the Secretary that either (1) limit any subsequent purchase to a buyer meeting low-income qualifications at a price determined by a formula or method providing the owner a reasonable return on investment (which may include a percentage of improvement costs) or (2) recapture the HOME assistance to assist other eligible persons (except where there are no net proceeds or insufficient proceeds to repay the full amount). The section further (1) authorizes the Secretary to permit a participating jurisdiction to allow a community land trust to acquire qualifying HOME-assisted housing in accordance with its preemptive rights or for purposes such as entering the chain of title, resale to a qualified low-income buyer on its waitlist, rehabilitation, or adding subsidies, provided the housing is resold to a qualified buyer within a reasonable period; (2) permits suspension or waiver of low-income buyer requirements for housing owned by armed forces members (regular component or National Guard on specified duty) receiving deployment or permanent change-of-station orders for at least 90 days to a distant location; and (3) permits such housing to continue qualifying upon the death of an owner if it remains the principal residence of an heir or beneficiary who assumes the deceased owner's HOME obligations.
This section revises the annual compliance review requirements under the HOME Investment Partnerships Program (i.e., grants to states and units of general local government for affordable housing development and preservation) by differentiating on-site inspection standards. Units of general local government must conduct on-site inspections to verify compliance with housing codes and other applicable regulations, while states must conduct on-site inspections to verify compliance with a national standard determined by the Secretary; participating jurisdictions must include review results in performance reports submitted to the Secretary under section 108(a) and make them publicly available.
This section revises enforcement provisions applicable to participating jurisdictions under the HOME Investment Partnerships Program (HOME)—which provides formula grants to states and localities for rental housing, homebuyer assistance, and housing rehabilitation—by (1) updating the section heading to “Program Enforcement and Penalties for Noncompliance”; (2) expanding the scope of substantial noncompliance to explicitly include provisions applicable throughout the affordability period required by section 215(a)(1)(E) (generally 20 years for rental projects) and applicable regulations; and (3) authorizing the Secretary, in addition to existing options, to reduce payments to the jurisdiction by an amount equal to prior payments not expended in accordance with the HOME statute.
This section exempts owners of small-scale housing (as defined in section 215(a)) from tenant selection requirements under paragraphs (2) through (4) of subsection (d). (Thus, such owners need only ensure tenant selection policies are consistent with providing housing for very low-income and low-income families, and are not required to relate criteria to program eligibility and lease performance, consider preferences for certain families, or select from a chronological waiting list with written rejection notices.)
This section establishes a home loan guarantee program within the HOME Investment Partnerships Program (HOME), under which the Secretary of Housing and Urban Development (HUD) may guarantee up to 100% of principal and interest—backed by the full faith and credit of the United States—on notes issued by HOME participating jurisdictions (i.e., states and localities receiving HOME formula grants) to finance the development or preservation of affordable rental and homeownership housing through eligible activities such as real property acquisition, new construction, reconstruction, rehabilitation, site improvements, conversion, demolition, financing costs, and relocation. (Thus, jurisdictions may use HOME grants and program income to pay principal, interest, servicing costs, and fees on guaranteed notes; guarantees require jurisdictions to demonstrate unsuccessful efforts to obtain private financing, pledge HOME grants as security, and limit exposure to five times the jurisdiction's most recent HOME allocation or unacceptable risk.) Aggregate guarantee commitments are capped at $2 billion for FY2025 (inflation-adjusted for subsequent years, subject to appropriations), with notes having repayment periods up to 20 years unless deemed a financial risk.
This section modifies the definition of community housing development organization (CHDO) under the HOME Investment Partnerships program by reducing the required accountability standard from "significant representation on the organization's governing board and otherwise" to "representation on the organization's governing board or as otherwise determined acceptable by the Secretary." It also adds a definition of "community land trust" as a nonprofit entity or state/local government instrumentality (not sponsored by a for-profit) that provides long-term affordable housing to low- and moderate-income persons using ground leases or similar measures ensuring affordability for at least 30 years, enabling homeownership purchase, and retaining preemptive purchase options; and eliminates the prior community land trust definition in another section of the act. Further, the section revises the 15% HOME set-aside for CHDOs by requiring only that a CHDO "materially participate" in housing ownership or development (as determined by the Secretary), rather than develop, sponsor, or own the housing; establishes a 24-month period after which uninvested set-aside funds revert for any eligible HOME activities without CHDO participation; and eliminates prior recapture provisions.
This section makes technical and conforming amendments to multiple sections of the Cranston-Gonzalez National Affordable Housing Act, including (1) redesignating definitional paragraphs in section 104; (2)-(3) updating references from the Stewart B. McKinney Homeless Assistance Act to the McKinney-Vento Homeless Assistance Act; (4) correcting a cross-reference in section 108; (5) inserting "United States" before "Housing Act" references, redesignating a paragraph, updating a cross-reference, and replacing a fixed mortgage limit of not to exceed 140 percent with a limit as determined by the Secretary in section 212; (6) correcting "grand children" to "grandchildren" in section 215; (7) redesignating and striking paragraphs, updating committee names, and increasing dollar thresholds to $750,000 (from $500,000) in multiple places in section 217; (8) making punctuation changes and redesignating paragraphs in section 220; (9) striking an extraneous word in section 225; and (10) updating committee and agency names in section 283.