Press Releases

The Subcommittee on Housing and Insurance, led by Subcommittee Chair Mike Flood (NE-01), held a hearing exploring bipartisan solutions to the housing shortage, such as modernizing the HOME Investment Partnership (HOME) Program which has not been reauthorized since 1992.   

On the need to modernize the HOME Program:

“The HOME program provides block grant funding to states and municipalities for the purpose of building and rehabilitating affordable housing. In practice, HOME is often used as gap financing for housing projects—often in conjunction with the low-income housing tax credit. Since the early 1990s, the program has continued to be funded without many statutory changes and without a reauthorization. In other words, the HOME program is ripe for a fresh look from this committee,” said Subcommittee Chair Flood. 

"The HOME Program we are discussing here today hasn't been reauthorized since 1992. It's just incredible when I say it out loud. It's as if the world hasn't changed in 30 years, and we know it has changed quite a bit since then. I appreciate this subcommittee's continued focus on housing issues, as many of our constituents continue to struggle to purchase a home or make rent. It is in the strategic interests of our nation and our constituents back home for us to use the resources available to bring high quality units to the market as quickly and effectively as possible," said Rep. Monica De La Cruz (TX-15).

 "With mortgage rates near their highest since the turn of the millennium, it is perhaps the most difficult time to purchase a home in our nation's history. However, so much of the crisis comes back to the fact that we are not building enough. The HOME Program, like other programs at HUD and other federal policies, needs targeted modernization for the housing needs of the 21st century. We need to be structuring these programs to enable federal, state, and local partners to work together to incentivize growing our supply,” said Rep. Mike Lawler (NY-17).

Witnesses echoed their support for the work of the Committee.

Alison George, Director, Colorado Division of Housing, Department of Local Affairs, on behalf of the Council of State Community Development Agencies (COSCDA) as Board President, said: “The greatest challenge of the HOME program in recent years has been the increase in regulatory requirements. While COSCDA recognizes the importance of accountability, HUD’s requirements have become more burdensome than ever before. Congress enacted the Build America, Buy America Act (BABA) as part of President Biden’s Infrastructure Investment and Jobs Act (IIJA) of 2021. COSCDA supports the intent of BABA, but the requirement for most HOME projects to use American-made products—or to prove these products are not sufficiency available for use—is overly burdensome and has led to increased costs both in terms of materials and administration. COSCDA members expect developers’ administrative costs to increase by approximately 8 – 10 percent of the total project cost due to BABA. There are also serious concerns regarding the length of time BABA will add to project completion. …HOME is working in Colorado, and across the country, but it could be even more effective with thoughtful updates and long-overdue modernization.”

Eric Oberdorfer, Director of Policy and Legislative Affairs, National Association of Housing and Redevelopment Officials (NAHRO), said: “Our nation is in the midst of a severe housing supply and affordability crisis. The HOME Investment Partnerships (HOME) program addresses this challenge by providing flexible funding to states and localities to develop and preserve affordable housing for low- and very low-income households, as well as to support homeownership initiatives. At its heart, the HOME program expands housing supply and helps communities meet their development needs by giving them the flexibility to choose the most effective strategies. Participating jurisdictions can use HOME funds for a wide range of eligible activities, including for new construction and rehabilitation of owner-occupied and rental housing, assistance to homebuyers, and tenant-based rental assistance. Since its inception in 1992, the HOME program has been a cornerstone of affordable housing production, producing and preserving approximately 1.4 million affordable housing units and providing tenant-based rental assistance to an estimated 415,000 households. …Beyond housing, the HOME program delivers substantial economic benefits to communities nationwide. For every $1 billion in HOME funding, about 18,230 jobs are created or sustained. Additionally, each dollar invested by Congress leverages nearly five dollars in other public and private funding. Since 1992, HOME investments have supported over two million jobs and generated approximately $135 billion in local income.”

Ellen Woodward Potts, Executive Director, Habitat for Humanity of Tuscaloosa, on behalf of Habitat for Humanity International, said: “Habitat leverages federal resources, like the HOME program, along with private and philanthropic dollars to build, rehab and repair affordable homes across the country, including in Tuscaloosa. The HOME program has long been a critical resource for Habitat affiliates and other nonprofit developers building affordable homes for homeownership. But the scale of our nation’s housing crisis demands that we take a fresh look at the program and renew our commitment to making HOME as effective and efficient as possible. …A mix of financial and regulatory barriers makes it difficult, and often impossible, to construct or rehabilitate affordably priced starter homes in the many communities that need them. Most builders don’t build starter homes anymore because they simply don’t “pencil out.” …We cannot make homeownership attainable again and rein in overall housing costs until we start rebuilding our nation’s supply of affordable, starter homes. Federal support through programs like HOME is critical, as data show that the private sector alone cannot meet this need.”