House Hearing: Modernizing the HOME Program
July 22, 2025
The House Financial Services Committee's Housing Subcommittee held a hearing on the modernization of the HOME Investment Partnerships Program, highlighting necessary reforms.
Why it matters: The HOME Program is crucial in addressing the national housing shortage by providing gap funding needed for affordable housing projects.
- The HOME Program is the federal government’s largest block grant program dedicated to creating affordable housing for low-income Americans.
- The Department of Housing and Urban Development (HUD) administers formula-based funding to states and localities to build, rehabilitate, or preserve affordable rental and ownership housing.
- The program has not been reauthorized since 1992, leading to outdated requirements that increase costs and delay projects.
- Subcommittee Chair Mike Flood (R-NE) and Ranking Member Emanuel Cleaver (D-MO) have made reauthorization a bipartisan priority.
What they’re saying: Chairman Flood’s priority is to increase housing supply, and his opening statement outlined four themes that increase housing costs in the HOME program:
- Environmental review requirements that delay a project's start and often drive up costs.
- Build America, Buy America rules that drive up the cost of critical construction materials.
- Davis-Bacon regulations that are much more costly due to the associated reporting requirements than they are for the actual cost of paying prevailing wages.
- Section 3 contractor requirements that make it more difficult to find workers to do the job, particularly in rural areas with workforce challenges.
The big picture: Witnesses from various housing organizations stressed the need for modern solutions to streamline processes.
- Proposals include simplifying environmental reviews and adjusting Davis-Bacon thresholds to reduce administrative burdens.
- Republicans and Democrats were largely aligned with the potential reforms, though some Democrats criticized the Trump administration and congressional appropriators for seeking to defund the HOME program.
What's next: The Committee is considering new legislation — the Home Reform Act of 2025 — aimed at updating the program and improving its effectiveness.
- This includes potential exemptions from certain federal requirements discussed above that hinder housing development.
The bottom line: These reforms aim to make it easier to build affordable housing across the country, addressing a critical supply issue.
Contact
David McCarthy (
dmccarthy@crefc.org) with any questions.