What Happened?

If your city or county gets money from the federal HOME Investment Partnerships Program, the law behind that money changed on July 11, but the program's regulations have not yet been updated to match, according to a new congressional report. ​

The HOME program, the federal government's largest block grant dedicated exclusively to affordable housing, was overhauled by a new law enacted July 11. The Congressional Research Service (CRS) says in a new report that the 21st Century ROAD to Housing Act, enacted July 11, reauthorized the HOME program and made changes that are not yet reflected in the program's federal regulations.

The 21st Century ROAD to Housing Act raised the income limit for homeownership assistance from 80 percent to 100 percent of area median income, lifted the maximum purchase price cap from 95 percent to 110 percent of the area median purchase price, eliminated a 24-month deadline for committing funds, and added certain infrastructure improvements as an eligible use of HOME money.

Why Does it Matter to Me?

HOME sends roughly $1.25 billion a year to 625 cities, counties and states, which use it to build, buy or rehabilitate affordable homes and rental units. The 2026 law raised the homeownership income limit from 80 percent to 100 percent of area median income and the maximum purchase price from 95 percent to 110 percent of the area median purchase price, but the CRS report says the HOME program's regulations have not yet been updated to reflect those changes.

A separate pot of HOME money created under the American Rescue Plan Act, known as HOME-ARP, faces its own deadline: through June, grantees had spent 28 percent of their allocated funds, and unspent money is subject to recapture after Sept. 30, 2030.

Both Sides, Now

The CRS report says the 21st Century ROAD to Housing Act, enacted July 11, raised the HOME homeownership income limit from 80 percent to 100 percent of area median income, eliminated the 24-month commitment deadline, and added certain infrastructure improvements as an eligible activity.

The Department of Housing and Urban Development (HUD) announced a further delay on April 29, 2026, affecting portions of its 2025 HOME rule that were not already in effect, according to the Federal Register notice. Congress passed the statute and set the deadlines, but writing the implementing regulations is HUD's responsibility.

What Happens Next?

HUD must complete a Build America, Buy America Act review by Jan. 7, 2027, and report to Congress by April 7, 2027. HUD must also issue rules covering the new infrastructure and environmental-review provisions by July 11, 2027.

Two provisions from a 2025 HUD final rule, uniform tenant protections and a green-building exception, were delayed indefinitely and remain on hold. No timeline has been announced for lifting those delays.

Will HUD update its regulations in time for the 625 local agencies running HOME-funded projects to fully use any HOME-ARP funds before the 2030 recapture deadline?

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