HOME Reform Act of 2025
Summary
The HOME Reform Act of 2025 amends the Cranston-Gonzalez National Affordable Housing Act to expand affordable housing, particularly rental housing. It broadens income eligibility for assistance, allows infrastructure improvements in nonentitlement areas, and modifies affordable housing qualifications. The act also streamlines environmental reviews and addresses statutory requirements related to construction and development.
Expected Effects
This act is likely to increase the supply of affordable housing and improve living conditions for low- and moderate-income families. It could also reduce bureaucratic hurdles for housing projects. The changes aim to provide more flexibility and resources for affordable housing initiatives.
Potential Benefits
- Expands eligibility for housing assistance to families with incomes up to 100% of the area median income.
- Allows funds to be used for infrastructure improvements related to affordable housing in nonentitlement areas.
- Streamlines environmental review processes for certain housing projects, potentially speeding up development.
- Provides exceptions to homeownership qualifications for military members and heirs of deceased owners.
- Removes the expiration of the right to draw HOME Investment Trust Funds.
Potential Disadvantages
- Increased income eligibility could strain existing resources, potentially reducing assistance to the lowest-income families.
- Infrastructure improvements in nonentitlement areas may divert funds from direct housing assistance.
- Relaxing environmental review requirements could lead to unintended environmental consequences.
- The act's effectiveness depends on the Secretary's regulations, which could introduce unforeseen limitations.
- Potential for increased costs associated with infrastructure improvements.
Constitutional Alignment
The HOME Reform Act of 2025 aligns with the Constitution's general welfare clause (Preamble). It aims to promote housing and community development, which can be considered part of the general welfare. The act's provisions regarding infrastructure improvements and environmental reviews are subject to constitutional limitations on federal power, particularly concerning states' rights (Tenth Amendment).
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).