The HOME Expansion Act increases income eligibility for affordable housing, mandates long-term affordability models, and allows certain local governments to use federal housing funds for essential infrastructure improvements.
Ted Budd
Senator
NC
The HOME Expansion Act increases housing accessibility by raising income eligibility limits for homebuyers to 110% of the area median income and providing new exceptions for military members and heirs. Additionally, the bill grants certain local governments greater flexibility to use federal housing funds for essential infrastructure improvements directly supporting affordable housing projects. It also mandates the use of long-term affordability models, such as community land trusts, to ensure housing remains accessible for future generations.
HOME Expansion Act Raises Homebuyer Income Limits to 110% of Median and Funds Local Infrastructure Projects
The HOME Expansion Act is designed to modernize how federal housing dollars work on the ground. Its primary goal is to make it easier for smaller towns to build affordable housing by allowing them to use HOME program funds for the 'boring' but essential stuff—like water lines, sewers, and roads—directly tied to new developments. Beyond just laying pipes, the bill shifts the goalposts for who can actually buy these homes, raising the maximum income limit for eligible buyers from 95% to 110% of the Area Median Income (AMI). For a middle-class family in a growing suburb, this could be the difference between qualifying for a first home or being priced out of the market entirely.
Paving the Way for New Neighborhoods
Currently, many small local governments (referred to in the bill as 'nonentitlement areas') are stuck in a catch-22: they have funds for housing but no money to build the roads or utility connections needed to support those houses. Section 2 of the bill fixes this by allowing these jurisdictions to use HOME funds for infrastructure improvements, provided the work is right next to housing assisted by federal programs. Think of a small-town developer trying to build a 10-unit complex; under these rules, the town could use federal money to fix the crumbling sidewalk or extend the sewer line to that specific site. This removes a massive financial hurdle that often kills affordable projects before they even break ground.
More Room in the Middle Class
One of the most significant changes for working professionals and tradespeople is the hike in income eligibility. By moving the cap to 110% of the AMI in Section 3, the bill acknowledges that 'affordable' isn't just for the lowest earners anymore—it’s a struggle for the middle class, too. For example, a nurse and a teacher living in a high-cost area who previously made just a few thousand dollars too much to qualify for assistance might now find themselves eligible. However, there is a trade-off: as the pool of eligible buyers grows, families at the lower end of the income scale might face stiffer competition for a limited number of homes.
Keeping Houses Affordable for the Long Haul
To ensure these homes don't just become quick flips for profit, the bill mandates 'long-term affordability' through specific ownership models. This includes things like community land trusts or shared equity models, where the land stays with a non-profit to keep the price low for the next buyer. The bill also includes some very practical 'real-life' safety nets. For instance, if a homeowner in the military gets orders to deploy or move permanently, Section 3 allows the government to waive certain rules so they don't lose their housing status. It also protects families by allowing heirs to stay in an affordable home after the owner passes away, provided it’s their primary residence. It’s a common-sense move that treats housing as a stable foundation rather than just a line item in a budget.