Sponsor
Theodore Paul Budd
Senator · R-NC
Senator · R-NC
The bill expands flexibility to fund infrastructure and to broaden homeownership and affordability tools (helping local infrastructure, buyers, heirs, and servicemembers) but does so at the cost of higher per-unit or construction costs, greater administrative complexity, and a likely reduction in the total number of subsidized households served.
Local governments and nearby residents of low-income housing will gain improved water, sewer, sidewalks, roads, and utility connections because HOME funds can now be used to build or repair infrastructure tied to housing developments.
Low-income households and prospective buyers can access a larger range of homes because the allowable purchase price cap is raised to 110% of appraised value, expanding purchase options compared with the prior 95% ceiling.
Families and future low-income buyers benefit from stronger tools to preserve long-term affordability through shared-equity models (community land trusts, limited-equity co-ops, CDCs).
Low-income households and taxpayers may see fewer subsidized homes or tenant assistance overall because using HOME funds for infrastructure and raising allowable purchase prices increases per-unit resource use and diverts funds from direct housing production.
Local governments and small developers may face higher project costs because requiring Davis‑Bacon–type prevailing wages for HOME-funded infrastructure raises construction costs, which can reduce the number or scale of projects delivered.
Local jurisdictions face administrative burden and potential delays because they must comply with new HUD rules within a year, which could slow deployment of funds and increase compliance costs.
Based on analysis of 3 sections of legislative text.
Allows HOME funds to pay for infrastructure tied to HOME/LIHTC housing, raises certain homeownership caps to 110%, permits shared-equity tools, and adds military/heir exceptions.
Official title: Expand the HOME Investment Partnerships Program, and for other purposes.
Introduced February 24, 2026 by Theodore Paul Budd · Last progress February 24, 2026
Allows HOME program dollars to fund infrastructure (water, sewer, sidewalks, roads, utility hookups) when that work directly serves housing assisted by HOME or the Low-Income Housing Tax Credit and applies Davis–Bacon–type labor rules to that construction; raises certain homeownership value/price ceilings from 95% to 110%, explicitly authorizes shared-equity and other long-term affordability mechanisms, and creates exceptions to homeownership income requirements for qualifying active-duty/National Guard members and for heirs who occupy and assume responsibilities for a deceased owner’s unit. HUD must issue implementing rules within one year.