H.R. 5878

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5878 Introduced in House (IH)]

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119th CONGRESS
1st Session
H. R. 5878

To amend the Cranston-Gonzalez National Affordable Housing Act to 
encourage expansion of the supply of decent, safe, sanitary, and 
affordable housing, with primary attention to rental housing, and for 
other purposes.

_______________________________________________________________________

IN THE HOUSE OF REPRESENTATIVES

October 31, 2025

Mr. Flood (for himself and Mr. Cleaver) introduced the following bill; 
which was referred to the Committee on Financial Services

_______________________________________________________________________

A BILL

To amend the Cranston-Gonzalez National Affordable Housing Act to 
encourage expansion of the supply of decent, safe, sanitary, and 
affordable housing, with primary attention to rental housing, 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 Reform Act of 2025''.

SEC. 2. DEFINITIONS; ASSISTANCE FOR LOW-INCOME FAMILIES.

(a) Definitions.--Section 104 of the Cranston-Gonzalez National 
Affordable Housing Act (42 U.S.C. 12704) is amended--
(1) in paragraph (6)(B), by striking ``significant''; and
(2) by adding at end the following new paragraph:
``(26) The term `infill housing project' means a 
residential housing project that--
``(A) is located within the geographic limits of a 
municipality;
``(B) is adequately served by existing utilities 
and public services as required under applicable law;
``(C) is located on a site of previously disturbed 
land of not more than 5 acres; and
``(D) is substantially surrounded by residential or 
commercial development, as determined by the 
Secretary.''.
(b) Assistance for Low-Income Families.--Title II of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C. 12721 et seq.) is 
amended--
(1) in section 214(2), by striking ``households that 
qualify as low-income families'' and inserting ``families with 
a household income that does not exceed 100 percent of the 
median family income of the area, as determined by the 
Secretary with adjustments for smaller and larger families'';
(2) in section 215--
(A) in subsection (b)(2), by striking ``whose 
family qualifies as a low-income family'' and inserting 
``with a family income that does not exceed 100 percent 
of the median family income of the area as determined 
by the Secretary with adjustments for smaller and 
larger families''; and
(B) in subsection (b)(3)(A)(ii), by striking ``low-
income homebuyers'' and inserting ``homebuyers with a 
household income that does not exceed 100 percent of 
the median family income of the area, as determined by 
the Secretary with adjustments for smaller and larger 
families''; and
(3) in section 271(c)--
(A) in paragraph (1)(B), by striking ``low-income'' 
and inserting ``families with a household income that 
does not exceed 100 percent of the median family income 
of the area as determined by the Secretary with 
adjustments for smaller and larger families''; and
(B) in paragraph (2)(A), by striking ``low-income 
families'' and inserting ``families with a household 
income that does not exceed 100 percent of the median 
family income of the area as determined by the 
Secretary with adjustments for smaller and larger 
families''.

SEC. 3. CHOICES MADE BY PARTICIPATING JURISDICTIONS.

Section 212(a)(2) of the Cranston-Gonzalez National Affordable 
Housing Act (42 U.S.C. 12742) is amended to read as follows:
``(2) Limitation on restrictions.--The Secretary shall not 
restrict a participating jurisdiction's choice of 
rehabilitation, substantial rehabilitation, new construction, 
reconstruction, acquisition, or other eligible housing use 
unless such restriction is explicitly authorized under section 
223(2).''.

SEC. 4. USE OF AMOUNTS BY CERTAIN JURISDICTIONS FOR INFRASTRUCTURE 
IMPROVEMENTS.

(a) Use of Investments for Housing Uses.--
(1) 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 new paragraph:
``(4) Infrastructure improvements in nonentitlement 
areas.--
``(A) In general.--In accordance with regulations 
to be issued by the Secretary, funds provided under 
this subtitle may be used for infrastructure 
improvements, including the installation or repair of 
water and sewer lines, sidewalks, roads, and utility 
connections, in any jurisdiction that does not receive 
assistance under title I of the Housing and Community 
Development Act of 1974, if such improvements are 
directly related to, and located within or immediately 
adjacent to--
``(i) housing assisted under this subtitle; 
or
``(ii) housing assisted by 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 
improvements assisted with funds provided under this 
subtitle.''.
(2) Issuance of rules.--Not later than 1 year after the 
date of the enactment of this Act, the Secretary shall issue 
such rules as the Secretary determines necessary to carry out 
the amendment made by paragraph (1).
(3) Rule of construction.--Nothing in the amendment made by 
paragraph (1) shall be construed to impose any requirements of 
the HOME Investment Partnerships program on housing that 
benefits from the infrastructure improvements described in such 
amendment but otherwise does not receive any assistance from 
such program.
(b) Per Unit Investment Limitations.--Section 212(e)(1) of the 
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 
12742(e)(1)) is amended by striking the second sentence.

SEC. 5. AFFORDABLE RENTAL HOUSING QUALIFICATIONS.

Section 215(a) of the Cranston-Gonzalez National Affordable Housing 
Act (42 U.S.C. 12745(a)) is amended by adding at the end the following 
new paragraph:
``(7) Exception for housing choice vouchers.--
Notwithstanding paragraph (1)(A), a rental unit shall be 
considered to qualify as affordable housing under this title 
if--
``(A) the unit is occupied by a tenant receiving 
tenant-based rental assistance under section 8 of the 
United States Housing Act of 1937 (42 U.S.C. 1437f);
``(B) the tenant's contribution toward rent does 
not exceed the amount permitted under such section 8 
assistance; and
``(C) the total rent for the unit does not exceed 
the amount approved by the public housing agency 
administering the assistance under that program.''.

SEC. 6. AFFORDABLE HOMEOWNERSHIP HOUSING QUALIFICATIONS.

Section 215 of the Cranston-Gonzalez National Affordable Housing 
Act (42 U.S.C. 12745(b)) is amended--
(1) in subsection (b),
(A) in paragraph (1), by striking ``95 percent'' 
and inserting ``110 percent'';
(B) 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 
new subparagraph:
``(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
(2) by adding at the end the following:
``(c) Permissible Exceptions Related to Homeownership 
Qualifications.--
``(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 under 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) Suspension or waiver of requirements for heir or 
beneficiary of deceased owner.--Notwithstanding subsection 
(b)(3), housing that meets the criteria under that subsection 
prior to the death of an owner may continue to qualify as 
affordable housing 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.''.

SEC. 7. REMOVAL OF EXPIRATION OF RIGHT TO DRAW HOME INVESTMENT TRUST 
FUNDS.

Section 218 of the Cranston-Gonzalez National Affordable Housing 
Act (42 U.S.C. 12748) is amended--
(1) by striking subsection (g); and
(2) by redesignating subsection (h) as subsection (g).

SEC. 8. ADJUSTED RECAPTURE AND REUSE OF SET-ASIDE FOR COMMUNITY HOUSING 
DEVELOPMENTAL ORGANIZATIONS.

Section 231(b) of the Cranston-Gonzalez National Affordable Housing 
Act (42 U.S.C. 12771(b)) is amended to read as follows:
``(b) Recapture and Reuse.--If any funds reserved under subsection 
(a) remain uninvested for a period of 24 months, the Secretary shall 
make such funds available to the participating jurisdiction for any 
eligible activities under title II of this Act without regard to 
whether a community housing development organization materially 
participates in the use of funds.''.

SEC. 9. ASSET RECYCLING INFORMATION DISSEMINATION EXPANSION.

Section 245(b)(2) of the Cranston-Gonzalez National Affordable 
Housing Act (42 U.S.C. 12785(b)(2)) is amended by striking ``95 
percent'' and inserting ``110 percent''.

SEC. 10. ENVIRONMENTAL REVIEW REQUIREMENTS.

(a) Categorical Exemptions; Removing Duplicative Reviews.--Section 
288 of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 
12838) is amended by adding at the end the following new subsections:
``(e) Categorical Exemptions.--The following categories of 
activities carried out under this title shall be statutorily exempt 
from environmental review under the National Environmental Policy Act 
of 1969 (42 U.S.C. 4321 et seq.), and shall not require further review 
under such Act--
``(1) new construction infill housing projects;
``(2) acquisition of real property for affordable housing 
purposes;
``(3) rehabilitation projects carried out pursuant to 
section 212(a)(1); and
``(4) new construction projects of 15 units or less.
``(f) Removing Duplicative Reviews.--
``(1) In general.--To the extent practicable and permitted 
by law, the Secretary shall ensure that a project that has 
undergone an environmental review under this section shall not 
be subject to a duplicative environmental review solely due to 
the addition, substitution, or reallocation of other sources of 
Federal assistance, if the scope, scale, and location of the 
project remain substantially unchanged.
``(2) Coordination of environmental review 
responsibilities.--The Secretary shall, by regulation, provide 
for coordination of environmental review responsibilities with 
other Federal agencies to streamline inter-agency compliance 
and avoid unnecessary duplication of effort under the National 
Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) and 
other applicable laws.
``(3) Recognition of prior reviews by responsible 
entities.--A project may not be subject to an environmental 
review under this section if a substantially similar review has 
already been completed by an entity designated under section 
104(g)(1) of the Housing and Community Development Act of 1974 
(42 U.S.C. 5304(g)(1)) or by another entity the Secretary 
determines to have equivalent authority, if the scope, scale, 
and location of the project remain substantially unchanged.''.
(b) Issuance of Rules.--Not later than 1 year after the date of the 
enactment of this Act, the Secretary shall issue such rules as the 
Secretary determines necessary to carry out the amendment made by this 
subsection.

SEC. 11. APPLICATION OF OTHER SPECIFIED STATUTORY REQUIREMENTS.

Title II of the Cranston-Gonzalez National Affordable Housing Act 
(42 U.S.C. 12721 et seq.) is amended by adding at the end the following 
new sections:

``SEC. 291. APPLICATION OF BUILD AMERICA, BUY AMERICA REQUIREMENTS.

``With respect to activities assisted under this title, 
requirements under the Build America, Buy America Act (41 U.S.C. 8301 
note) and any implementing regulations or guidance, shall only apply to 
infrastructure improvements conducted under section 212(a)(4) using 
funds provided under subtitle A.

``SEC. 292. NONAPPLICABILITY OF CERTAIN REQUIREMENTS FOR SMALL 
PROJECTS.

``Notwithstanding any other provision of law, the requirements of 
section 3 of the Housing and Urban Development Act of 1968 (12 U.S.C. 
1701u), and any implementing regulations or guidance, shall not apply 
to any activity assisted under title that involves rehabilitation, 
construction, or other development of housing if the total number of 
dwelling units assisted under the activity is 50 or fewer and if such 
assistance is provided to--
``(1) a State recipient pursuant to section 216; or
``(2) a participating jurisdiction that received a total 
allocation of less than $3,000,000 in the most recent fiscal 
year pursuant to section 216.''.

SEC. 12. TECHNICAL AMENDMENTS.

The Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 
12701 et seq.) is amended--
(1) by striking ``Stewart B. McKinney Homeless Assistance 
Act'' each place it appears and inserting ``McKinney-Vento 
Homeless Assistance Act''; and
(2) by striking ``Committee on Banking, Finance and Urban 
Affairs'' each place it appears and inserting ``Committee on 
Financial Services''.
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