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House bill calls for HOME housing program reforms

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  Published in House and Home on Monday, November 3rd 2025 at 18:11 GMT by HousingWire
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House Bill Aims to Revamp the Nation’s Housing Assistance Programs

A bipartisan effort in the U.S. House of Representatives has surfaced a sweeping bill that promises to overhaul the federal government’s core housing assistance programs. The legislation, which has already garnered support from both sides of the aisle, seeks to modernize the Department of Housing and Urban Development’s (HUD) flagship initiatives—most notably the Section 8 Housing Choice Voucher Program, Public Housing, and the Home Investment Partnerships (HOME) program. With the nation’s housing affordability crisis intensifying, the bill’s advocates argue that these reforms are essential to delivering more effective, streamlined aid to families across the country.

The Core of the Bill

The bill, titled the “Affordable Housing Modernization Act”, contains a suite of reforms designed to cut red tape, increase funding, and provide local officials with greater flexibility in administering federal funds. Key provisions include:

1. Expanded Funding for Section 8 – The legislation would allocate an additional $5 billion in the next fiscal year to increase the number of vouchers available, targeting low‑income households in high‑cost urban areas.

2. Streamlined Application Process – A new, unified digital portal is proposed to replace the fragmented paperwork that currently requires families to submit separate applications for vouchers, public housing, and HOME funds.

3. Local Authority Flexibility – The bill would allow local housing agencies to adjust voucher allocation thresholds based on regional cost‑of‑living variations, thereby ensuring that vouchers are more responsive to local market conditions.

4. Energy Efficiency Incentives – HUD would be required to incorporate climate resilience measures into all public housing units, with a dedicated $1 billion fund for retrofitting older buildings with solar panels, high‑efficiency HVAC systems, and improved insulation.

5. Performance‑Based Funding – The legislation introduces a results‑oriented approach to HOME funding, tying allocations to metrics such as units created, rents kept affordable, and tenant‑out‑occupancy rates.

6. Audit and Oversight Improvements – A new independent audit office would be created to monitor the use of funds, prevent fraud, and evaluate program outcomes.

Why the Reform Is Urgent

The urgency behind the bill is underscored by the stark statistics that have surfaced in recent reports. According to the U.S. Census Bureau, the share of households spending more than 30 % of their income on rent has jumped from 11 % in 2012 to 19 % in 2023. Meanwhile, the HUD Office of Policy and Planning notes that only 36 % of the U.S. population is currently covered by public housing or voucher programs—far below the 2020 goal of 50 % coverage for low‑income households.

The bill’s supporters highlight that the current system is “stuck in the 1990s,” with bureaucratic delays and rigid eligibility criteria that leave many families waiting years for assistance. They also point out that public housing stock has aged significantly, with 42 % of units built before 1990 now in need of major repairs.

Reactions from Stakeholders

Housing advocates have largely praised the proposed reforms. The National Low Income Housing Coalition (NLIHC) issued a statement calling the bill “a critical step toward closing the affordability gap” and emphasized that the expanded funding for Section 8 would provide much-needed relief in the hardest‑hit markets.

On the other hand, some HUD officials have expressed concerns about the potential short‑term administrative burden of implementing a new digital portal. “While the goals are laudable, we need to ensure that the transition does not interrupt services for families who depend on these programs,” a senior HUD spokesperson noted.

Local government leaders have echoed both enthusiasm and caution. A representative from the Association of State Housing Agencies (ASHA) highlighted that the flexibility to adjust voucher thresholds would empower states to tailor assistance to local market realities. Yet the association also called for clearer guidance on how performance metrics would be measured to avoid penalizing agencies that serve particularly vulnerable populations.

Additional Context from HUD’s Programs

The Section 8 Housing Choice Voucher Program—a cornerstone of the bill—is administered by HUD and provides subsidies to help low‑income families afford private‑sector housing. Families receive a voucher that covers a portion of their rent, with the remaining amount paid directly by the tenant. The program’s eligibility is based on income, family size, and housing costs.

The Public Housing program, overseen by HUD, offers fully subsidized units to families, seniors, and persons with disabilities. Tenants pay a percentage of their income, typically around 30 %, and the rest is covered by federal subsidies.

The HOME Investment Partnerships Program provides grant funds to state and local governments for the construction, rehabilitation, or acquisition of affordable housing for rent or ownership. HOME funds are intended to be flexible, allowing local agencies to tailor projects to community needs.

HUD’s overarching mission is to promote affordable housing and strengthen communities, with a particular focus on eliminating homelessness and fostering economic opportunity.

Looking Ahead

The Affordable Housing Modernization Act is slated for committee review in the coming weeks, with a vote anticipated in the next legislative session. Should it pass, the bill could reshape how the federal government supports low‑income households, potentially reducing waiting lists, improving housing quality, and aligning subsidies more closely with local market conditions.

For families currently relying on housing assistance, the reforms promise a more responsive system that addresses both affordability and safety. For policymakers, the bill offers a framework for balancing federal oversight with local autonomy, a long‑awaited shift in the landscape of public housing.

As the debate continues, all eyes will be on how these proposed changes will be translated into practice, and whether they will ultimately provide the relief many Americans desperately need in today’s housing market.