Congress Introduces Bipartisan HOME Reform Act

Key Takeaways

On October 21, 2025, Reps. Mike Flood (R-NE.) and Emanuel Cleaver (D-MO.) introduced the HOME Reform Act (H.R. 5798), which would make substantial changes to the eligible uses and exemptions applying to the Home Investment Partnerships (HOME) Program. 

HOME funds can be used for the construction, acquisition, and rehabilitation of affordable housing, as well as direct assistance to homebuyers and tenants. HOME’s flexibility allows counties to design policies and programs that are locally tailored to meet housing needs. By law, 60 percent of HOME funds are allocated to 600 participating local jurisdictions, while the remaining 40 percent is allocated to states. Since 1992, HOME funds have supported the creation of over 1.3 million units of affordable housing and provided direct rental assistance to over 400,000 families.

What does the bill change?

The HOME Reform Act includes several provisions designed to reduce administrative barriers and streamline the development of affordable housing. Key provisions include:

• Exemption from Build America, Buy America Act (BABA) requirements for HOME-funded projects.
• Higher thresholds for Davis-Bacon prevailing wage requirements, increasing the trigger for HOME-funded projects from those with 12 or more units to 50 or more units.
• New categorical exemptions from NEPA environmental reviews for certain HOME projects. Projects exempt from National Environmental Policy Act (NEPA) review requirements include infill housing development, acquisition of real property for affordable housing purposes, certain rehabilitation projects, and new construction of 15 units or fewer.
• Exempts Smaller Recipients from Additional Requirements under Section 3 of the Housing and Urban Development Act of 1968. Under the proposed change, counties receiving less than $3 million in HOME funds in the prior fiscal year would be exempt from Section 3 requirements requiring job training opportunities for low-income residents on projects with fewer than 50 units.
• Expansion of eligible uses, allowing jurisdictions that do not receive Community Development Block Grant (CDBG) entitlement funding to use HOME funds for infrastructure adjacent to HOME or Low-Income Housing Tax Credit (LIHTC) projects. This includes roads, sidewalks, water and sewer lines, and utility connections. 

Together, these reforms are designed to help local governments and their partners deliver affordable housing more efficiently while maintaining strong accountability standards. NACo will continue working with congressional leaders to ensure counties have the flexibility and resources necessary to maximize the impact of HOME funds and strengthen communities nationwide.