WASHINGTON - The U.S. Department of Housing and Urban Development (HUD) published a preview of a Notice of Proposed Rulemaking to modernize regulations for the HOME Investment Partnership Program (HOME), with publication in the Federal Register to follow later this month. The proposed rule would streamline program requirements for states and localities, better align HOME funding with other federal housing resources, reduce administrative burden for communities and housing developers, improve assistance and protections for renters, strengthen the use of HOME for homeownership activities, and encourage green and climate resilient building practices. The HOME program is a critical tool to bolster housing supply and preserve existing affordable housing at a time of dire need. Through HOME funding, HUD advances the Biden Administration’s goal of building 2 million units of housing.  

The Biden-Harris Administration’s Housing Supply Action Plan committed to modernizing and streamlining the HOME program. HOME is the largest Federal block grant to state and local governments for the creation of affordable housing for low-income households. Under the HOME program, states, localities, and territories receive flexible block grants to provide down payment assistance and closing costs; build new housing to own or rent; rehabilitate existing housing; and on a limited basis, provide tenant based rental assistance. HUD recently announced $1.3 billion for fiscal year 2024 to over 650 participating jurisdictions. This notice of proposed rulemaking is the first significant update to the regulations governing the HOME program in over a decade.

“For more than 30 years, the HOME program has been used to build affordable housing for homeowners and renters and to provide rental assistance that has played a critical role in advancing housing opportunities for low-income families across the country,” said Acting Secretary Adrianne Todman. “The proposed rule is a significant step in improving the HOME program, reducing redundant administrative requirements, and expanding access to affordable housing nationwide.”

These updates would improve the ability of participating jurisdictions who receive HOME to implement funding more effectively and efficiently – making it easier for States and localities to use HOME to support low-income renters, homeowners, and homebuyers.

Additionally, if finalized , the proposed rule would simplify requirements for homeownership activities. The update addresses common challenges in homebuyer activities by extending sales deadlines for HOME-assisted units, adding flexibility for resale provisions, and allowing for rehabilitation of HOME-assisted properties after acquisition.

The proposed rule also advances the Biden-Harris Administration’s efforts to strengthen renter protections, including through its Blueprint for a Renters Bill of Rights and acceptable industry standards. The proposed changes to HOME tenant-based rental assistance would support low-income renters by creating a mandatory lease addendum with enhanced tenant protections, better define ‘good cause’ in the HOME program and reduce burdensome paperwork for tenants.

Principal Deputy Assistant Secretary for Community Planning and Development Marion McFadden added: “For years, stakeholders, elected officials, and grantees have asked ‘How can we make HOME funding easier to use?’ We meticulously evaluated how we could modernize and improve the program. This proposed rule would strengthen the program – benefiting families of modest means, small property owners, nonprofit organizations, and communities for years to come.”

The update would also expand opportunities for nonprofit organizations and developers who use HOME funding to create and retain renter or homeowner activities in their neighborhoods, such as revised requirements for community housing development organizations and community land trusts. Further supporting housing investments, the proposed rule also simplifies requirements for small-scale rental housing projects and better aligns HOME with Low Income Housing Tax Credits. It would also provide incentives for green building and energy efficiency standards, which could result in lower utility and insurance costs for homeowners.

If finalized, this proposed rule would reduce administrative burden by aligning utility allowances with other HUD programs, aligning inspection requirements with NSPIRE, reducing the frequency of income determination certification, and eliminating arduous waiting list requirements for small properties.

HUD seeks public comment on this proposed rule and invites all interested parties and members of the public to submit their views, comments, and recommendations for improvement for this proposal. Comments may be submitted electronically through www.regulations.gov, or through the methods described in the proposed rule.

HOME is a formula grant program which provides funding to all fifty states and over 650 localities – exclusively benefiting low-income households. Further information regarding HOME, click here.

For the full proposed rule text find HUD's preview of the Notice of Proposed Rulemaking on the HOME Investment Partnership Program here. The Notice of Proposed Rulemaking will soon be published in the Federal Register. Comments will be due no later than 60 days after publication.