Senate BillS 3901Housing and Community Development
HOME Expansion Act
INTRO FEB 24· LAST ACTION FEB 24
READING
4MIN
COSPONSORS
0
READER REACTIONS0 TOTAL
NO VOTES YET · BE THE FIRST
Introduced only
LEGISLATIVE PROGRESS
STEP 2 / 8
Introduced
In Committee
Reported
Passed Senate
Passed House
Conference
To President
Became Law
WHAT THE BILL DOES
AI-written
This bill matters because it addresses critical barriers to creating and preserving affordable housing across the country, particularly in communities that are often overlooked. By allowing federal housing funds to be used for essential infrastructure like water and sewer lines in rural areas, it can unlock development opportunities where such basic services are a significant hurdle. This means more new affordable homes could be built in places that desperately need them, supporting local economies and improving quality of life.
The changes to homeownership qualifications directly impact individuals by making more homes eligible for assistance and offering crucial flexibility for specific populations like military families and heirs. Implementing long-term affordability models like community land trusts helps ensure that public investments in affordable housing benefit generations of families, not just the initial occupants, combating the cycle of rising housing costs. If this bill passes, we could see more robust and sustainable affordable housing development, greater housing stability for vulnerable populations, and a more efficient use of federal funds to tackle intertwined housing and infrastructure challenges. If it doesn't pass, these communities and individuals would continue to face existing challenges without these expanded tools and flexibilities.
KEY PROVISIONS
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PROVISION 01
Allows certain local governments in smaller or rural areas to use HOME funds for infrastructure improvements like water lines, roads, and sidewalks, if these improvements are directly linked to affordable housing projects.
This helps develop affordable housing in areas lacking basic infrastructure, which is often a barrier to new construction.
PROVISION 02
Increases the maximum allowable purchase price for homes assisted by the HOME program from 95% to 110% of the area's median purchase price.
This broadens the types and locations of homes that can qualify for the program, making more options available to low-income buyers.
PROVISION 03
Adds new mechanisms for maintaining long-term affordability in homeownership projects, such as shared equity ownership models, community land trusts, and limited equity cooperatives.
This ensures that affordable homes remain affordable for future buyers, preventing them from being priced out of the market.
PROVISION 04
Creates an exception that allows income requirements to be waived for active military members who receive deployment or permanent change of station orders.
This provides flexibility and support for military families facing housing challenges due to their service requirements.
PROVISION 05
Ensures that housing previously qualified as affordable under the HOME program maintains its status if inherited by an heir or beneficiary who lives there and takes on the associated responsibilities.
This helps prevent the displacement of family members after a homeowner's death, preserving housing stability.
This bill matters because it addresses critical barriers to creating and preserving affordable housing across the country, particularly in communities that are often overlooked. By allowing federal housing funds to be used for essential infrastructure like water and sewer lines in rural areas, it can unlock development opportunities where such basic services are a significant hurdle. This means more new affordable homes could be built in places that desperately need them, supporting local economies and improving quality of life.
The changes to homeownership qualifications directly impact individuals by making more homes eligible for assistance and offering crucial flexibility for specific populations like military families and heirs. Implementing long-term affordability models like community land trusts helps ensure that public investments in affordable housing benefit generations of families, not just the initial occupants, combating the cycle of rising housing costs. If this bill passes, we could see more robust and sustainable affordable housing development, greater housing stability for vulnerable populations, and a more efficient use of federal funds to tackle intertwined housing and infrastructure challenges. If it doesn't pass, these communities and individuals would continue to face existing challenges without these expanded tools and flexibilities.
KEY PROVISIONS
AI-extracted
high
Allows certain local governments in smaller or rural areas to use HOME funds for infrastructure improvements like water lines, roads, and sidewalks, if these improvements are directly linked to affordable housing projects.
This helps develop affordable housing in areas lacking basic infrastructure, which is often a barrier to new construction.
med
Increases the maximum allowable purchase price for homes assisted by the HOME program from 95% to 110% of the area's median purchase price.
This broadens the types and locations of homes that can qualify for the program, making more options available to low-income buyers.
high
Adds new mechanisms for maintaining long-term affordability in homeownership projects, such as shared equity ownership models, community land trusts, and limited equity cooperatives.
This ensures that affordable homes remain affordable for future buyers, preventing them from being priced out of the market.
med
Creates an exception that allows income requirements to be waived for active military members who receive deployment or permanent change of station orders.
This provides flexibility and support for military families facing housing challenges due to their service requirements.
med
Ensures that housing previously qualified as affordable under the HOME program maintains its status if inherited by an heir or beneficiary who lives there and takes on the associated responsibilities.
This helps prevent the displacement of family members after a homeowner's death, preserving housing stability.
Not later than 1 year after the date of enactment of this Act
Secretary of Housing and Urban Development shall issue rules to implement the changes related to infrastructure improvements.
GLOSSARY
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HOME Investment Partnerships Program (HOME Program)
A federal program that provides grants to states and local governments to create affordable housing for low-income households.
Participating Jurisdiction
A state or local government that receives federal funds through the HOME Investment Partnerships Program.
Nonentitlement Areas
Typically smaller cities, towns, or rural communities that do not directly receive certain federal housing and community development grants, like Community Development Block Grants (CDBG), and instead receive funds through their state.
Infrastructure Improvements
Essential public works like water and sewer lines, sidewalks, roads, and utility connections.
Shared Equity Ownership Model
A type of housing ownership that helps keep homes affordable over time for future buyers, often by limiting how much the home's price can increase when sold.
Community Land Trust
A non-profit organization that owns land permanently to ensure housing and other assets built on it remain affordable for low- and moderate-income people.
Limited Equity Cooperative
ACTION TIMELINE
2 EVENTS
FEB 24
Introduced in Senate
INTROREFERRAL
FEB 24
Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
A housing cooperative where the resale price of shares is limited, ensuring that the housing remains affordable to future residents.
Section 42 of the Internal Revenue Code (LIHTC)
The Low-Income Housing Tax Credit, a federal tax credit program used to encourage the investment of private equity in the development of affordable rental housing.
