Federal housing bill cuts red tape and raises income limits for HOME Program funds

What does this do?

HR 5878 updates the HOME Investment Partnerships Program, which provides federal funds to states and local governments for building and repairing affordable housing. The bill eliminates full federal environmental reviews for small projects of 15 units or fewer, infill housing, property purchases, and basic rehabilitation, and ends the requirement to repeat a review when funding sources change. It also removes the rule that causes unspent HOME funds to expire and raises the qualifying home price ceiling from 95 percent to 110 percent of the area median.

Who does it affect?

The bill affects local governments, housing developers, nonprofit housing organizations, renters using Housing Choice Vouchers, low- and moderate-income homebuyers, and military families nationwide. Smaller cities and rural communities without separate federal block grant funding would also gain new options under the bill.

Why does it matter?

Raising the income eligibility limit to 100 percent of local median income would expand the pool of households that qualify for HOME-assisted housing beyond the program's current low-income focus. Changes to environmental review requirements, fund expiration rules, and price ceilings would alter how quickly and broadly communities can deploy federal housing dollars.

What does it cost, and who pays?

The summary describes an existing federal grant program that funds affordable housing construction and repair, but does not specify new spending amounts, appropriations, or cost figures for this bill.

Where does it stand?