H.R. 5798: HOME Reform Act of 2025

The HOME Reform Act of 2025 aims to amend the Cranston-Gonzalez National Affordable Housing Act to enhance the availability of decent, safe, and affordable rental housing, primarily focusing on low-income families. Here are the key components of the bill:

1. Definitions and Housing Assistance

The bill revises definitions within the law to broaden the types of housing projects that can be funded. It introduces the term "infill housing project," which refers to residential projects located within municipalities that are connected to existing public services, built on previously disturbed land, and surrounded by other developments.

Additionally, it updates the criteria for which families qualify for assistance, shifting from “low-income families” to those whose household income does not exceed 100% of the median family income for their area, with adjustments for family size.

2. Agency Flexibility

The bill reduces the limitations on how participating jurisdictions can rehabilitate or construct housing, allowing for more autonomy without unnecessary restrictions from the Secretary of Housing and Urban Development (HUD).

3. Infrastructure Improvements

It allows jurisdictions not receiving specific federal assistance to use funds for vital infrastructure improvements such as water lines or sidewalks, if these improvements are related to housing projects.

4. Housing Qualifications

The criteria for affordable rental housing are modified. For example, housing occupied by tenants receiving Section 8 assistance can be classified as affordable, even if it does not meet other previous criteria.

Also, homeownership qualifications are adjusted to allow for greater flexibility, such as permitting income exceptions for military members, and enabling heirs of deceased owners to retain affordable housing status under certain conditions.

5. Simplifying Regulations

The bill eliminates the expiration of rights to draw home investment trust funds, allows easier recapture of funds reserved for community housing projects, and expands the thresholds for small projects that can be exempt from certain labor requirements.

6. Environmental Reviews

It introduces categorical exemptions from duplicative environmental review processes for specific housing projects, thereby streamlining approval timelines for developers.

7. Exceptions and Technical Amendments

Several technical amendments are included to ensure proper alignment with current law and update the titles of relevant acts.

Relevant Companies

• Home Depot (HD) - May experience increased demand for construction materials due to infrastructure improvements and new housing projects funded under this act.
• D.R. Horton (DHI) – A major residential construction company that could be significantly impacted by increased housing development opportunities.
• Toll Brothers (TOL) - A luxury homebuilder that may see implications from potential expansions in affordable housing projects.