Sponsors
The bill expands HOME program flexibility—allowing HOME-funded infrastructure in non‑CDBG jurisdictions and loosening some homeownership rules—to improve access and protect certain households, but it shifts limited HOME dollars toward infrastructure and raises costs and administrative complexity in ways that may reduce how many low‑income households the program can serve.
Local governments in jurisdictions without CDBG access can use HOME funds to build or repair water/sewer lines, sidewalks, roads, and utility connections tied to HOME- or LIHTC-assisted housing, improving infrastructure needed for affordable housing development.
Low-income homebuyers can purchase units priced up to 110% of appraised value (up from a 95% ceiling), expanding the set of homes affordable under program rules and increasing purchase options.
Shared-equity tools (community land trusts, limited-equity co-ops, CDC resale restrictions) are supported to preserve long-term affordability for future buyers, helping maintain permanently affordable homeownership options.
HOME funds spent on infrastructure (water/sewer/roads/utilities) will reduce the pool of HOME dollars available for direct housing production, rehabilitation, or tenant assistance, potentially lowering the number of households served.
Higher per-unit program costs—from both Davis-Bacon–type prevailing wages on HOME-funded infrastructure and allowing sales up to 110% of appraised value—are likely to raise overall program costs and could reduce the total number of households served with fixed funding.
Requiring jurisdictions to comply with new HUD rules within a year creates administrative burden and could delay or complicate use of funds, particularly for smaller local governments.
Based on analysis of 3 sections of legislative text.
Allows HOME funds for infrastructure tied to HOME/LIHTC housing with prevailing‑wage rules; raises homeownership cap to 110%; permits shared‑equity tools and limited exceptions for military members and heirs.
Introduced February 24, 2026 by Theodore Paul Budd · Last progress February 24, 2026
Allows participating jurisdictions to use HOME program funds to build or connect infrastructure (water/sewer lines, sidewalks, roads, utility hookups) when those improvements are directly tied to housing assisted under HOME or the Low-Income Housing Tax Credit. Adds labor‑standards (Davis‑Bacon–style) requirements for that infrastructure work and directs HUD to issue implementing rules within one year. Also raises certain homeownership price/appraised value limits from 95% to 110%, authorizes long‑term affordability tools (shared‑equity, community land trusts, limited‑equity cooperatives, etc.), and creates limited exceptions to income qualifications for active duty/National Guard service members with qualifying orders and for heirs who occupy and assume program duties.