HOME Expansion Act

#3901 | S Congress #119

Subjects:

Last Action: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs. (2/24/2026)

Bill Text Source: Congress.gov

Summary and Impacts
Original Text

Bill Summary

The "HOME Investment Partnerships Program Expansion Act" aims to enhance the existing HOME Investment Partnerships Program, which facilitates affordable housing initiatives across the United States.

Key provisions of the legislation include:

1. **Infrastructure Improvements**: The act allows certain jurisdictions that do not receive federal assistance under the Housing and Community Development Act to use HOME funds for critical infrastructure improvements, such as water and sewer lines, sidewalks, and roads, directly related to affordable housing projects.

2. **Affordable Homeownership Qualifications**: The legislation modifies the income qualifications for affordable homeownership. It raises the income limit from 95% to 110% of the area median income and introduces mechanisms to ensure long-term affordability through models like shared equity ownership and community land trusts.

3. **Exceptions for Military Members and Heirs**: The act provides specific exceptions to income qualifications for military members deployed away from their homes and for heirs of deceased owners of affordable housing, allowing them to maintain their affordable housing status under certain conditions.

Overall, the bill is designed to improve access to affordable housing by expanding funding opportunities for infrastructure and adjusting criteria to support homeownership, particularly for military families and heirs.

Possible Impacts

The **HOME Investment Partnerships Program Expansion Act** (referred to as the "HOME Expansion Act") could affect people in the following ways:

1. **Improved Infrastructure in Underserved Areas**: By allowing jurisdictions that do not receive assistance under the Housing and Community Development Act to use HOME funds for infrastructure improvements, residents in non-entitlement areas may see better access to essential services. This could mean improved water and sewer systems, safer sidewalks, and better roads, which would enhance the quality of life for those living in these communities.

2. **Increased Access to Affordable Homeownership**: The Act expands the criteria for affordable homeownership by allowing a shared equity model and options for community land trusts. This could help more low- to moderate-income families secure homes and maintain long-term affordability, making homeownership a reality for those who might otherwise be priced out of the market.

3. **Support for Military Families**: The Act provides exceptions for military members regarding income qualifications for affordable housing. This means that service members who are deployed or relocating due to military orders can still access affordable housing options without being burdened by stringent income requirements. This support can ease the transition for military families facing unique challenges due to their service commitments.

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 3901 Introduced in Senate (IS)]

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119th CONGRESS
  2d Session
                                S. 3901

   To expand the HOME Investment Partnerships Program, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           February 24, 2026

   Mr. Budd introduced the following bill; which was read twice and 
    referred to the Committee on Banking, Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
   To expand the HOME Investment Partnerships Program, and for other 
                               purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``HOME Investment Partnerships Program 
Expansion Act'' or the ``HOME Expansion Act''.

SEC. 2. USE OF AMOUNTS BY CERTAIN JURISDICTIONS FOR INFRASTRUCTURE 
              IMPROVEMENTS.

    (a) In General.--Section 212(a) of the Cranston-Gonzalez National 
Affordable Housing Act (42 U.S.C. 12742(a)) is amended by inserting 
after paragraph (3) the following:
            ``(4) Infrastructure improvements in nonentitlement 
        areas.--
                    ``(A) In general.--A participating jurisdiction may 
                use funds provided under this subtitle for 
                infrastructure improvements, including the installation 
                or repair of water and sewer lines, sidewalks, roads, 
                and utility connections, if--
                            ``(i) such participating jurisdiction does 
                        not receive assistance under title I of the 
                        Housing and Community Development Act of 1974 
                        (42 U.S.C. 5301 et seq.); and
                            ``(ii) such improvements are directly 
                        related to, and located within or immediately 
                        adjacent to--
                                    ``(I) housing assisted under this 
                                subtitle; or
                                    ``(II) housing assisted under 
                                section 42 of the Internal Revenue Code 
                                of 1986.
                    ``(B) Application of labor standards.--The labor 
                standards and requirements set forth in section 110 of 
                the Housing and Community Development Act of 1974 (42 
                U.S.C. 5310) shall apply to any infrastructure 
                improvement conducted using funds provided under this 
                subtitle.
                    ``(C) Rule of construction.--Nothing in this 
                paragraph may be construed to impose any requirements 
                of the HOME Investment Partnerships program on housing 
                that benefits from an infrastructure improvement 
                conducted using funds provided under this subtitle but 
                was not otherwise assisted under the HOME Investment 
                Partnerships program.''.
    (b) Rulemaking.--Not later than 1 year after the date of enactment 
of this Act, the Secretary of Housing and Urban Development shall issue 
rules to carry out the amendment made by subsection (a).

SEC. 3. AFFORDABLE HOMEOWNERSHIP HOUSING QUALIFICATIONS.

    Subtitle A of title II of the Cranston-Gonzalez National Affordable 
Housing Act (42 U.S.C. 12741 et seq.) is amended--
            (1) in section 215 (42 U.S.C. 12745);
                    (A) in subsection (b)--
                            (i) in paragraph (1), by striking ``95 
                        percent'' and inserting ``110 percent''; and
                            (ii) in paragraph (3)--
                                    (I) in subparagraph (A)(ii), by 
                                striking ``or'' at the end;
                                    (II) in subparagraph (B), by 
                                striking ``and'' at the end and 
                                inserting ``or''; and
                                    (III) by adding at the end the 
                                following:
                    ``(C) maintain long-term affordability through a 
                shared equity ownership model, a community land trust, 
                a limited equity cooperative, a community development 
                corporation, or other mechanism approved by the 
                Secretary, that preserves affordability for future 
                eligible homebuyers and ensures compliance with the 
                purposes of this title, including through the use of 
                purchase options, rights of first refusal, or other 
                preemptive rights to purchase housing; and''; and
                    (B) by adding at the end the following:
    ``(c) Qualification Exceptions for Homeownership.--
            ``(1) Military members.--A participating jurisdiction, in 
        accordance with terms established by the Secretary, may suspend 
        or waive the income qualifications described in subsection 
        (b)(2) with respect to housing that otherwise meets the 
        criteria described in subsection (b) if the owner of the 
        housing--
                    ``(A) is a member of a regular component of the 
                armed forces or a member of the National Guard on full-
                time National Guard duty, active Guard and Reserve 
                duty, or inactive-duty training (as those terms are 
                defined in section 101(d) of title 10, United States 
                Code); and
                    ``(B) has received--
                            ``(i) temporary duty orders to deploy with 
                        a military unit or military orders to deploy as 
                        an individual acting in support of a military 
                        operation, to a location that is not within a 
                        reasonable distance from the housing, as 
                        determined by the Secretary, for a period of 
                        not less than 90 days; or
                            ``(ii) orders for a permanent change of 
                        station.
            ``(2) Heirs and beneficiaries of deceased owners.--Housing 
        that meets the criteria described in subsection (b)(3) prior to 
        the death of an owner of such housing shall continue to qualify 
        as affordable housing under this title if--
                    ``(A) the housing is the principal residence of an 
                heir or beneficiary of the deceased owner, as defined 
                by the Secretary; and
                    ``(B) the heir or beneficiary, in accordance with 
                terms established by the Secretary, assumes the duties 
                and obligations of the deceased owner with respect to 
                funds provided under this title.''; and
            (2) in section 245(b)(2) (42 U.S.C. 12785(b)(2)), by 
        striking ``95 percent'' and inserting ``110 percent''.
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