HR2031-119

What This Bill Does

The HOME Investment Partnerships Reauthorization and Improvement Act updates a core federal affordable-housing grant program. It authorizes HOME appropriations of $5 billion for fiscal year 2025, rising to about $6.08 billion for fiscal year 2029. It adjusts participating-jurisdiction qualification thresholds for inflation, changes reallocations so compliant jurisdictions can receive unused funds while HUD can remove noncompliant jurisdictions from reallocations, revises affordable-housing qualification rules, creates treatment for small-scale housing with not more than four rental units, reforms homeownership resale restrictions so jurisdictions can require resale to eligible buyers at formula prices or recapture investment, requires on-site inspections and public reporting of review results, strengthens enforcement by allowing payment reductions equal to misused amounts, relaxes certain tenant-selection rules for small-scale housing, creates a HOME loan-guarantee program for participating-jurisdiction notes or obligations used to acquire, construct, rehabilitate, or preserve affordable rental and homeownership housing, and recognizes community land trusts with 30-year affordability mechanisms.

Who Benefits and How

Low-income renters benefit because HOME funding and enforcement rules support affordable rental housing production and preservation. Low- and moderate-income homebuyers benefit from resale-restriction reforms and community land trust rules that preserve affordable homeownership. Participating jurisdictions benefit from higher authorized funding and a new loan-guarantee tool for acquisition, construction, reconstruction, and rehabilitation. Community land trusts benefit because the bill defines them and recognizes long-term affordability through ground leases, deed covenants, or similar tools. Small-scale affordable housing owners benefit from tailored tenant-selection treatment for properties with not more than four rental units.

Who Bears the Burden and How

HUD must administer higher authorization levels, inflation-adjusted thresholds, reallocations, inspections, enforcement, loan guarantees, and CHDO rule changes. Participating jurisdictions must comply with affordability, inspection, public-reporting, resale, and performance requirements or risk reduced payments. Owners receiving HOME support must preserve affordability and comply with resale, foreclosure, transfer, and inspection conditions. Federal taxpayers fund the multibillion-dollar HOME authorization and any loan-guarantee exposure.

Key Provisions

• Authorizes HOME funding from $5 billion in fiscal year 2025 to $6.07753125 billion in fiscal year 2029.
• Amends participating-jurisdiction thresholds, inflation adjustments, and fund reallocations.
• Strengthens affordable-housing qualification, resale restrictions, inspections, public reporting, and noncompliance penalties.
• Creates a HOME loan-guarantee program for affordable rental and homeownership housing development and preservation.
• Recognizes community land trusts and modifies community housing development organization rules.