The U.S. Department of Housing and Urban Development (HUD) has announced a significant update to the HOME Investment Partnerships (HOME) program regulations. This final rule, which will be published in the Federal Register on January 6, 2025, aims to modernize and streamline program requirements and ensure better alignment with other federal housing initiatives. Here is a detailed overview of the changes and their implications for stakeholders.

Key Highlights of the Final Rule

Background on the Final Rule

The final rule follows the publication of a proposed rule on May 29, 2024. HUD received and reviewed extensive feedback from stakeholders during the comment period, resulting in adjustments to ensure the regulations address both practical challenges and statutory requirements. Minor revisions were also made to CDBG and Section 8 program regulations to align with the updated HOME program rules.

Implications for Affordable Housing Stakeholders

For Developers:

For Public Housing Agencies (PHAs) and Local Governments:

For Tenants and Communities:

Next Steps

HUD encourages all stakeholders to review the final rule in detail and assess its impact on their operations and strategies. Additional guidance and training materials are expected to be released to assist in the transition to the updated regulations.

Conclusion

The final rule represents a significant step forward in modernizing the HOME program and optimizing its role in addressing the nation’s affordable housing needs. Stakeholders must promptly align with the updated requirements and capitalize on the improved processes.

Shortly, I will post an article on the A. J. Johnson Consulting Services website outlining the most significant HOME rules changes, especially those that will impact management operations at projects utilizing HOME funds.