WASHINGTON, D.C. — The U.S. Department of Housing and Urban Development (HUD) announced its final rule to modernize regulations for the HOME Investment Partnership Program (HOME), the largest federal grant program aimed at creating housing opportunities for low-income families. With updated requirements, the new rule streamlines processes, enhances protections for renters, and incentivizes sustainable building practices, making it easier for states and localities to address the nation’s urgent housing challenges.
Since its inception in 1992, HOME has supported the construction, rehabilitation, and rental assistance for over 1.38 million homes. The updated regulations, published in the Federal Register, reflect HUD’s commitment to reducing administrative barriers while expanding the program’s accessibility and efficiency. These changes stem from stakeholder feedback and are designed to improve housing development and affordability across the country.
“The final rule reflects insightful comments offered by multiple stakeholders,” said Marion McFadden, Principal Deputy Assistant Secretary for Community Planning and Development. “I’m also pleased that the new regulations will incentivize building energy-efficient homes, resilient to weather-related disasters.”
Key Updates
Among the significant changes are efforts to reduce administrative burden and align HOME requirements with other federal housing programs. New provisions include:
- Streamlined Income Determinations to simplify housing eligibility for grantees and beneficiaries.
- Enhanced Tenant Protections, including a mandatory lease addendum and clearer eviction guidelines.
- Modernized Support for Homeownership, with revamped subsidy limits, extended deadlines for home sales, and the introduction of post-acquisition rehabilitation.
- Support for Small Rental Projects, such as accessory dwelling units, by reducing inspections and waitlist obligations.
- Energy Efficiency Incentives to lower energy costs through green building practices.
The final rule also revises regulations for community housing development organizations and community land trusts, ensuring nonprofits and local developers have greater access to funding for neighborhood revitalization.
Broader Impact
The changes mark a significant step in HUD’s efforts to address housing affordability and quality, particularly for disadvantaged populations. By aligning utility allowances with other HUD programs and simplifying inspection requirements, the updates enable participating jurisdictions to use federal funds with greater efficiency. Additionally, the program encourages collaboration with state and local governments to expand housing access while reducing costs for families.
HOME’s alignment with the Biden Administration’s Justice40 Initiative ensures that 40% of program benefits flow to underserved communities that have been historically marginalized or overburdened by environmental challenges.
HUD Agency Head Adrianne Todman emphasized the program’s enduring impact. “For more than 30 years, HOME has provided funding to build new homes, assist homebuyers, and provide rental assistance. These updates strengthen the program’s ability to meet the housing needs of families across the nation,” she said.
Through strategic changes and new incentives, HUD aims to bolster housing production, preserve affordable options, and promote equity in access to sustainable and resilient housing solutions. The modernization of the HOME program stands as a testament to HUD’s commitment to supporting disadvantaged households and addressing the growing needs of the housing crisis.
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