The U.S. Department of Housing and Urban Development (HUD) has announced a significant update to the regulations governing the HOME Investment Partnership Program, a federal grant initiative aimed at creating housing for disadvantaged households. The updates were published in the Federal Register and are designed to streamline program requirements for states and localities, aligning HOME funding with other federal housing resources while reducing administrative burdens.
“These new rules build on HUD’s commitment to reducing the red tape and making programs easier to use,” said Adrianne Todman, HUD Agency Head. The HOME program, established in 1992, has completed over 1.38 million homes and plays a crucial role in advancing housing opportunities nationwide.
The regulatory changes include simplifying income determinations, aligning rental housing requirements with other federal funding sources like LIHTC, and modernizing homeownership activities. They also incentivize energy-efficient building practices and aim to expand community developer capacity by updating guidance for Community Housing Development Organizations and Community Land Trusts.
Principal Deputy Assistant Secretary for Community Planning and Development Marion McFadden highlighted that the final rule reflects insights from various stakeholders. “I’m also pleased that new regulations will incentivize building energy efficient homes, resilient to weather-related disasters,” McFadden stated.
These updates are expected to improve how participating jurisdictions implement HOME funding, making it easier for states and localities to support renters, homeowners, and homebuyers. Additionally, they simplify requirements for small rental projects by reducing inspection frequencies and eliminating waiting list requirements.
Under this updated framework, nonprofit organizations and developers will have expanded opportunities to access HOME funding. This aims to create or retain renter or homeowner housing within communities while promoting energy efficiency standards that could lower utility costs.
A stakeholder overview of these changes is scheduled by HUD on January 10, 2025.
