[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5798 Introduced in House (IH)]
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119th CONGRESS
1st Session
H. R. 5798
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 21, 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.--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--
``(A) housing assisted under this subtitle; or
``(B) housing assisted by section 42 of the
Internal Revenue Code of 1986.''.
(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 this title 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. SMALL-PROJECT EXEMPTION TO LABOR REQUIREMENTS EXPANSION.
Section 286(a) of the Cranston-Gonzalez National Affordable Housing
Act (42 U.S.C. 12836(a)) is amended by striking ``12 or more units''
and inserting ``24 or more units''.
SEC. 11. 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. 12. 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.
``The Build America, Buy America Act (41 U.S.C. 8301 note; subtitle
A of title IX of Public Law 117-58), and any implementing regulations
or guidance, shall not apply to activities assisted under this title.
``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. 13. 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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