Bill
S 3901
Expands HOME funds to include infrastructure in nonentitlement areas and raises income eligibility to 110% AMI with long-term affordable ownership options and protections.
Title: HOME Investment Partnerships Program Expansion Act
Purpose
- To expand and strengthen the HOME Investment Partnerships Program (HOME) and related affordable housing tools.
- Specifically adds new allowable uses of HOME funds for infrastructure improvements in non-entitlement areas and expands affordable homeownership qualifications and protections.
Key Provisions
1) Infrastructure Improvements in Nonentitlement Areas (NEW Section 212(a))
- Allow participating jurisdictions to use HOME-related funds for infrastructure improvements (e.g., water and sewer lines, sidewalks, roads, utility connections) if:
- The jurisdiction does not receive assistance under Title I of the Housing and Community Development Act of 1974 (HUD CDBG program).
- The infrastructure improvements are directly related to, and located within or immediately adjacent to, housing assisted under this subtitle or housing assisted under Section 42 of the Internal Revenue Code.
- Labor standards: Applies the labor standards of section 110 of the Community Development Act of 1974 (42 U.S.C. 5310) to any infrastructure projects funded under this subsection.
- Construction rule: The ordinance does not impose HOME-specific requirements on housing that benefits from these infrastructure improvements but was not otherwise HOME-assisted.
- Rulemaking: HUD must issue implementing rules within 1 year of enactment.
2) Affordable Homeownership Qualifications (Subtitle A, Title II, Amended)
- Intent: Adjust eligibility and long-term affordability mechanisms to support more durable, affordable homeownership options.
- Qualification threshold changes (Section 215):
- Subsection (b)(2)(1) previously requiring 95% of area median income (AMI) for eligibility is raised to 110% AMI.
- Subsection (b)(2)(3) revisions expand eligibility criteria to allow/require long-term affordability through mechanisms such as:
- Shared equity ownership models
- Community land trusts
- Limited equity cooperatives
- Community development corporations
- Other Secretary-approved mechanisms
- These mechanisms must preserve affordability for future eligible homebuyers and support purposes of the title, including through purchase options, rights of first refusal, or other preemptive rights to purchase housing.
- Qualification Exceptions (new subsection (c)):
- Military Members: Allows participating jurisdictions to suspend or waive income qualifications for eligible military homeowners under terms set by the Secretary, for owners who meet criteria (active duty/Guard duty, deployment for at least 90 days or permanent change of station).
- Heirs and Beneficiaries of Deceased Owners: Housing remains affordable if, after an owner's death, the heir/beneficiary assumes duties and obligations tied to HOME funds and continues meeting the program’s criteria.
- Related amendment to income eligibility (Section 245(b)(2)):
- Increases the income eligibility threshold from 95% to 110% of AMI (consistent with Section 215 adjustments).
3) Administrative/Procedural Details
- Short title: “HOME Investment Partnerships Program Expansion Act” or “HOME Expansion Act.”
- Effective/Implementation timeline: HUD must issue required rules within 1 year of enactment for the new infrastructure provisions.
- Referred to: Senate Committee on Banking, Housing, and Urban Affairs.
Potential Impacts
Note: The bill is in the introductory stage and would require enacted law and final rulemaking by HUD to become effective. The sponsor listed is Sen. Budd (with a co-sponsor).
Compiled from official sources — confirm details with the bill’s official record.
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