HUD finalizes timeline for HOME Program Final Rule implementation

Key Takeaways

On April 17, the U.S. Department of Housing and Urban Development (HUD) released an updated timeline on implementation of the final rule titled “HOME Investment Partnerships Program: Program Updates and Streamlining.” While the rule was originally scheduled to be implemented on February 5, an executive order titled “Regulatory Freeze Pending Review” led to a delay of the effective date until April 20. Most changes are still scheduled to be effective April 20, though certain provisions are being delayed further. 

What does the final rule mean for counties?

Counties rely on HOME funding to support affordable housing for low-income families and improve the overall quality of life in local communities. HOME’s flexibility allows counties to build, buy or rehabilitate affordable housing for rent or homeownership, as well as offer direct rental assistance to low-income individuals. Since 1992, HOME funds have created over 1.33 million units of affordable housing and provided direct rental assistance to over 400,000 families.

The final rule makes several changes to the HOME program and represents the first major regulatory update since 2013. Changes to the program include updates to per-unit subsidy limits, clarification of resale protocols, expansion of allowable inspections, greater flexibility in income reviews and an expansion of allowable costs.

In July 2024, NACo submitted formal comments in response to HUD’s HOME Proposed Rule. We are pleased to see that several of our key recommendations were incorporated into the final version of the rule.

Among the changes we advocated for that are now reflected in the final rule are: 

• A revised definition of small-scale housing: NACo recommended broadening the criteria for what qualifies as small-scale housing to better reflect the diversity of housing developments across counties. The updated definition now allows more local projects to qualify, increasing access to funding and encouraging development in areas with more modest housing needs.
• Greater flexibility in determining utility allowances: NACo supported expanding the options jurisdictions have for calculating utility costs. The final rule now allows participating jurisdictions to choose between the HUD Utility Schedule Model, the utility allowance from the local public housing authority, or another HUD-approved method. This added flexibility helps counties tailor utility calculations to local realities and ease administrative burdens.
• Shortened affordability periods: NACo advocated for reducing the required affordability durations for certain project types, particularly where HOME assistance amounts are more modest. The final rule reflects this by shortening the affordability period for units receiving $15,000–$50,000 in HOME funds, making it easier for local governments to meet program goals while still promoting long-term affordability.
• Clarified tenant protection requirements: NACo emphasized the need for clearer guidance on tenant rights and responsibilities under the HOME program. The final rule now includes distinct tenancy addenda and outlines specific protections for various forms of assistance, including rental housing, tenant-based rental assistance and one-time security deposit help, providing much-needed clarity for both jurisdictions and residents. 

These changes reflect HUD’s responsiveness to county-level concerns and a stronger alignment between federal policy and the practical needs of local governments. NACo appreciates the opportunity to engage in this process and remains committed to advocating for policies that support affordable housing development and preservation across the nation.