HOME Expansion Act
- Bill Number
- S. 3901
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 2
- Policy Area
- Housing and Community Development
- Status
- Introduced
- Latest Action
- 2026-02-24: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- Last Updated
- 2026-04-30T13:40:40Z
AI-Generated Summary
Purpose
The HOME Investment Partnerships Program Expansion Act (S. 3901) aims to broaden the HOME Investment Partnerships Program, established under the Cranston-Gonzalez National Affordable Housing Act. It expands eligible uses of funds for infrastructure in underserved areas and relaxes income and qualification rules for affordable homeownership to make housing more accessible, particularly for military members and heirs of deceased owners.
Key Provisions
- Infrastructure Funding in Nonentitlement Areas (Section 2):
- Allows participating jurisdictions that do not receive Community Development Block Grant (CDBG) funds (typically smaller or rural areas outside major cities) to use HOME funds for infrastructure improvements, such as installing or repairing water/sewer lines, sidewalks, roads, and utility connections.
- These improvements must directly support and be located near housing assisted by HOME funds or low-income housing tax credits (Section 42 of the Internal Revenue Code).
- Labor standards from the Housing and Community Development Act (e.g., fair wages for workers) apply to these projects.
- Clarifies that such improvements do not impose HOME program rules on nearby housing not originally assisted by HOME.
- Requires the Secretary of Housing and Urban Development (HUD) to issue implementing rules within one year of enactment.
- Affordable Homeownership Qualifications (Section 3):
- Increases the income eligibility limit for homebuyers from 95% to 110% of the area median income (AMI), allowing slightly higher-income households to qualify.
- Expands long-term affordability options to include models like shared equity ownership (where buyers and sellers share home value gains), community land trusts (nonprofit entities that hold land to keep housing affordable), limited equity cooperatives (resident-owned housing with resale restrictions), or other HUD-approved mechanisms. These ensure future buyers remain eligible through tools like purchase options or rights of first refusal.
- Adds exceptions to income and affordability rules:
- Military Members: Jurisdictions can waive income limits for active-duty armed forces or National Guard members facing deployment (at least 90 days away from home) or permanent change of station (relocation orders).
- Heirs and Beneficiaries: Housing remains qualified if inherited and used as the principal residence by an heir, who assumes the original owner's obligations under HOME rules.
- Applies the 110% AMI limit to certain program resale provisions.
Significant Changes to Existing Law
- Fund Use Expansion: Previously, HOME funds could not be used for infrastructure in non-CDBG areas; this adds a targeted allowance tied to specific affordable housing, without altering core program requirements for unrelated properties.
- Income Threshold Increase: Raises the AMI cap from 95% to 110%, broadening access to homeownership assistance while maintaining focus on moderate-income households (AMI is a measure of typical household income in a region).
- New Affordability Mechanisms: Introduces flexible, community-based models for preserving affordability beyond traditional subsidies.
- Qualification Exceptions: Creates first-time waivers for military personnel and continuity for heirs, addressing gaps in prior rules that could disqualify housing due to life events like death or deployment.
Potential Impacts
- On Government Agencies: HUD must develop new rules, potentially increasing administrative workload but enabling more efficient use of existing HOME funds (no new appropriations specified). Participating jurisdictions gain flexibility, especially in rural or small communities, to support housing development without separate infrastructure funding.
- On Citizens: Expands affordable homeownership opportunities for up to 110% AMI households, military families (easing temporary relocations), and heirs (preventing loss of affordability upon inheritance). Could accelerate infrastructure in underserved areas, improving living conditions near low-income housing.
- On International Relations: No direct impact, as the bill focuses on domestic housing policy.
Main Stakeholders Affected
- Participating Jurisdictions: Local governments or states administering HOME funds, particularly nonentitlement areas (e.g., rural counties) benefiting from infrastructure options.
- Low- and Moderate-Income Households: Homebuyers up to 110% AMI, including those using new affordability models.
- Military Personnel and Families: Active-duty members and National Guard facing deployments or relocations.
- Heirs and Beneficiaries: Family members inheriting HOME-assisted homes.
- Housing Developers and Nonprofits: Entities involved in low-income tax credit projects, community land trusts, or cooperatives, gaining more funding flexibility.
- HUD and Labor Groups: HUD oversees implementation; workers on infrastructure projects are protected by labor standards.
Notable Legal, Constitutional, or Political Implications
- Legal: Strengthens the HOME program's framework by clarifying fund uses and exceptions, reducing potential disputes over eligibility (e.g., no retroactive requirements on non-HOME housing). Aligns with existing tax code (Section 42) for synergies but requires HUD rulemaking to avoid implementation challenges.
- Constitutional: No apparent issues; supports equal protection by aiding vulnerable groups like military families without discriminating.
- Political: Promotes housing affordability and military support, potentially appealing across parties, but could spark debate on expanding benefits to higher incomes (110% AMI) amid federal budget constraints. Enhances equity in rural vs. urban funding without new spending.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Recent Actions
- 2026-02-24: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- 2026-02-24: Introduced in Senate
Bill Versions
- HOME Investment Partnerships Program Expansion Act — issued 2026-02-24 — PDF (6 pages)