H.R. 5878: HOME Reform Act of 2025

This bill, known as the HOME Reform Act of 2025, aims to amend the existing Cranston-Gonzalez National Affordable Housing Act to support the expansion of affordable housing, with an emphasis on rental properties. Below are the main components of the bill:

Definitions and Assistance for Low-Income Families

The bill revises definitions related to affordable housing. It introduces the term "infill housing project," which refers to residential projects in urban areas that are well-served by existing utilities and are located on previously disturbed land. Additionally, it expands the definition of eligible low-income families by allowing families with incomes up to 100% of the median family income in their area to qualify for assistance programs.

Choices Made by Participating Jurisdictions

The bill allows participating jurisdictions to have greater flexibility in choosing how to use funding for housing projects. The Secretary will not impose restrictions unless specifically authorized by law.

Infrastructure Improvements

Funds allocated under this law can be used for infrastructure improvements (like roads, sidewalks, and utility connections) in areas that do not usually receive financial assistance. This provision aims to improve the living conditions surrounding housing projects.

Affordable Rental Housing Qualifications

The bill clarifies that rental units will count as affordable housing if they are occupied by tenants receiving government rental assistance, with specific conditions regarding rent contributions and total rental amounts.

Affordable Homeownership Housing Qualifications

Changes are proposed for the qualifications related to affordable homeownership. This includes adjusting income requirements for homebuyers and allowing new ownership structures that maintain affordability, such as community land trusts. It also allows military members certain exemptions from income qualifications related to homeownership assistance.

Removal of Expiration for Fund Access

The bill removes limitations on the timeframe within which jurisdictions can draw funds from home investment trust programs, thereby allowing them to access these funds without concerns over a deadline.

Community Housing Development Organizations

Funds that remain unused for a certain period can be reallocated for any eligible activities rather than being tied to community housing development organizations, which might enhance the utilization of available funds.

Environmental Review Requirements

Certain housing activities will be exempt from environmental reviews under federal laws, thus streamlining the approval process for new construction and rehabilitation projects. This change aims to facilitate faster project implementation while ensuring that essential environmental controls are still observed.

Technical Amendments

The bill also includes technical changes to update references and clarify terms in the existing law, ensuring that the legislation remains current with terminology and procedural frameworks.

Relevant Companies

None found.