The HOME Reform Act of 2025 modifies the federal HOME Investment Partnerships program, which funds affordable housing development and homeownership assistance. The bill expands eligibility by allowing families earning up to 100 percent of area median income (rather than strict low-income definitions) to participate, and permits rental units occupied by tenants using housing vouchers to count as affordable housing. It streamlines bureaucracy by exempting certain infill housing projects and small construction projects from environmental reviews, removing duplicate reviews when federal funding sources change, and expanding the labor requirement exemption to projects of 24 or more units (up from 12). The legislation also enables small municipalities to use housing funds for related infrastructure improvements like water lines and roads, allows housing to maintain long-term affordability through community land trusts and shared equity models, and provides exceptions for military members and heirs of deceased homeowners. Additionally, the bill removes expiration dates on funds and exempts the program from federal "Buy American" procurement requirements and certain employment regulations for smaller projects. The bill directs the Department of Housing and Urban Development to issue implementing regulations within one year.
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