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Expands how HOME program funds can be used by allowing jurisdictions that do not receive entitlement funding to pay for basic infrastructure (water, sewer, sidewalks, roads, utility hookups) when those improvements are directly next to or serve housing assisted under HOME or low-income housing tax credit projects. Raises certain HOME program income eligibility thresholds to 110% of area median, requires long-term affordability through shared-equity or similar tools, and creates limited homeownership exceptions for active-duty service members and heirs who keep the home as their principal residence. HUD must issue implementing rules within one year.
The bill expands and protects affordable homeownership and allows targeted infrastructure investments and worker protections near affordable housing, but it redirects funds and imposes rules that may raise costs, add administrative complexity, and risk reducing assistance for the lowest‑income households.
Low- and moderate-income homebuyers can qualify for homeownership assistance at higher income limits (up to 110% of AMI) and homes can be preserved as affordable long-term via shared-equity models (CLTs, limited-equity co-ops), expanding access to purchase while protecting future affordability.
Local governments in nonentitlement jurisdictions can use subtitle funds to build or repair infrastructure (water/sewer, sidewalks, roads, utilities) adjacent to affordable housing, enabling targeted upgrades where traditional funding may be limited.
Residents of assisted and affordable housing near funded infrastructure projects will gain improved access to utilities and safer sidewalks/roads, directly improving health and safety around their homes.
Raising income eligibility to 110% of AMI may expand access for higher‑earning buyers but risks reducing the availability of assistance for the very lowest‑income households.
Taxpayers could face increased federal spending or a reallocation of subtitle funds toward infrastructure projects instead of direct housing services, shifting program resources.
Applying prevailing-wage labor standards to funded projects may increase construction costs and slow project timelines due to higher wages and compliance burdens.
Introduced February 24, 2026 by Theodore Paul Budd · Last progress February 24, 2026