From fast-growing Sun Belt metros to long-stalled coastal markets, local, county, and state jurisdictions are grappling with ways to unwind decades of regulatory deadweight, zoning bottlenecks, community opposition, and procedural drag that choke off new housing supply.
A rare federal assist may be taking shape on Capitol Hill.
On Wednesday, U.S. Reps. Mike Flood (R-Neb.) and Emanuel Cleaver (D-Mo.) unveiled new reforms to the HOME Investment Partnerships Program that would remove regulatory barriers for builders and expand home ownership opportunities.
The HOME Reform Act of 2025, if passed, would be the first major reform to the HOME program since its creation in 1990. Congressman Flood said that he hopes the bill will go to the floor for a vote shortly after the new year.
Streamlining development and reducing regulatory burden
The bipartisan bill would exempt new categories of development under the HOME program from review under the National Environmental Policy Act of 1969 (NEPA). These categories include the following:
- New construction and rehabilitation projects of 15 units or fewer.
- New construction on infill lots.
- Acquisition of real property for affordable housing.
The legislation would also limit duplicative environmental reviews in the HOME program and make other changes to reduce burdensome red tape associated with NEPA.
NEPA, while well-intentioned, is often used by organizations to delay or kill development projects. During the press conference, Chris Vincent, vice president, government relations and advocacy at Habitat for Humanity International, endorsed these proposed regulatory changes.
“This bill reduces unnecessary red tape. It makes building homes more effective and more efficient, so organizations like Habitat and others can build more homes and bring the American dream within reach for more families,” Vincent said.
Buddy Hughes, Chairman of the National Association of Home Builders, also praised the legislation, saying that it “relieves regulatory burdens on home builders and housing providers to enable them to construct more attainable, affordable housing.”
If signed into law, this would be the latest blow to NEPA’s regulatory power. Earlier this year, the Supreme Court issued a unanimous decision in Seven County Infrastructure Coalition v. Eagle County that greatly reduced NEPA’s scope of environmental reviews of infrastructure and other construction projects.
The Court ruled that NEPA only requires government agencies to consider the project’s actual environmental impacts, not speculative future impacts. While NEPA doesn’t always affect some homebuilders directly, many infrastructure projects that builders rely on, including roads, are subject to NEPA review.
Making home ownership more attainable
The HOME Investment Partnerships Program (HOME) also distributes grants to states and municipalities for homeownership programs like down payment and closing cost assistance.
The legislation would make a couple of important changes to the program’s eligibility requirements.
- Expand income eligibility of the HOME program for individuals and families from the current 80% of area median income (AMI) threshold up to 100 percent of AMI.
- Increase the maximum median purchase price allowable through the program from 95 percent of the area’s median purchase price to 110 percent.
These changes reflect a disturbing reality — a growing share of the population is unable to afford a home, as entry-level buyers and young Americans are increasingly squeezed out of the housing market. This bipartisan bill could be one small step toward addressing this trend.
“This proposal will reduce costs, promote affordable housing development and preservation, and support more homebuyers and renters,” said David M. Dworkin, President and CEO of the National Housing Conference.
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