The U.S. Department of Housing and Urban Development (HUD) has issued a final rule that further delays the effective dates of two key provisions in its recent updates to the HOME Investment Partnerships Program. Published in the Federal Register on October 22, 2025, this action pushes back revisions to 24 CFR 92.250 and 24 CFR 92.253 until April 30, 2026. These changes, part of a broader effort to streamline and modernize the program, were initially slated for implementation earlier in 2025. The delay reflects HUD's response to practical challenges in rolling out the updates, offering participating jurisdictions more time to adapt. This development underscores the complexities of federal housing policy implementation, where regulatory adjustments must balance efficiency with stakeholder readiness in addressing the nation's affordable housing needs.
Background on the HOME Program and Recent Updates
The HOME Investment Partnerships Program, established by the Cranston-Gonzalez National Affordable Housing Act of 1990, provides federal block grants to states, local governments, and consortia to support affordable housing initiatives. Funds can be used for activities such as building, buying, or rehabilitating housing for rent or ownership, as well as providing direct rental assistance to low-income families. Administered by HUD's Office of Community Planning and Development, the program has distributed billions of dollars since its inception, playing a critical role in expanding housing access for low- and moderate-income households.
On January 6, 2025, HUD published the HOME Final Rule in the Federal Register (90 FR 746), introducing updates aimed at streamlining program operations and incorporating lessons from years of implementation. These changes were informed by public comments on a proposed rule from 2023 and sought to address issues like administrative burdens, project feasibility, and compliance requirements. The original effective date was February 5, 2025. However, HUD subsequently delayed certain provisions twice—first to April 20, 2025 (90 FR 8780, February 3, 2025), and then to October 30, 2025 (90 FR 16085, April 17, 2025). The latest delay, announced in the October 22, 2025, Federal Register (90 FR 48443), targets amendatory instructions 3 and 27, which revise 24 CFR 92.250 and 24 CFR 92.253, respectively.
Key players in this process include HUD Secretary Scott Turner, who signed the final rule, and Bryan Horn, Acting Principal Deputy Assistant Secretary for the Office of Community Planning and Development, listed as the contact for further information. Participating jurisdictions, such as state housing agencies and local governments, are directly affected, as they must comply with HOME regulations to access and utilize grant funds.
Details of the Delayed Provisions
The provisions subject to this further delay address core aspects of project financing and tenant safeguards in the HOME program.
Section 24 CFR 92.250 governs the maximum per-unit subsidy amount, matching contributions, and affordability periods for HOME-assisted projects. The revisions in the January 2025 final rule aimed to update these standards to better reflect current market conditions, potentially adjusting subsidy limits to make projects more viable in high-cost areas while ensuring long-term affordability for beneficiaries. For instance, the changes might involve recalibrating the per-unit subsidy caps based on updated data from HUD's fair market rent calculations or construction cost indices. Without these updates taking effect, jurisdictions continue operating under the existing framework, which dates back to prior rulemakings and may not fully account for recent inflation in housing development costs.
Section 24 CFR 92.253 focuses on tenant protections and selection processes. This includes requirements for lease terms, eviction procedures, and criteria for selecting tenants in HOME-funded rental projects. The proposed revisions sought to strengthen protections against arbitrary evictions and ensure fair access, aligning with broader federal efforts to promote housing stability. For example, the updates might incorporate elements from the Violence Against Women Act reauthorizations or recent HUD guidance on fair housing. Delaying these changes means that current tenant selection rules remain in place, potentially leaving gaps in protections that the new rule intended to address.
HUD's supplementary information in the October 22, 2025, notice provides minimal explanation for the delay, stating simply that it extends the effective date to April 30, 2026. This brevity contrasts with more detailed rationales in prior delay notices, but it aligns with HUD's pattern of granting extensions to allow for system updates, training, and compliance preparations.
Legal and Political Context
This delay occurs within a framework of administrative law governed by the Administrative Procedure Act (APA), which requires agencies to provide notice and opportunity for comment on substantive rules. The original HOME Final Rule followed this process, but delays like this one are issued as final rules without additional comment periods, as they are procedural adjustments. Precedents for such actions include HUD's handling of other program updates, such as those for the Community Development Block Grant program, where implementation timelines have been extended to accommodate grantee feedback.
Politically, the HOME program operates in a landscape shaped by congressional appropriations and executive priorities. Funding levels have fluctuated, with recent increases under the Biden administration's housing initiatives, though this rule's attribution remains under HUD's current leadership. Stakeholders, including the National Low Income Housing Coalition and state housing finance agencies, have generally supported the streamlining efforts but emphasized the need for adequate transition time. Critics, such as some developer associations, argue that repeated delays create uncertainty, potentially stalling projects. Supporters view the extensions as pragmatic, preventing disruptions in ongoing housing developments.
Implications for Stakeholders
In the short term, this delay allows participating jurisdictions to maintain current practices without immediate need for policy revisions or staff retraining. For example, a local government planning a HOME-funded multifamily project can proceed under existing subsidy and tenant rules, avoiding potential compliance pitfalls during the transition. Developers benefit from continued predictability, which may encourage more participation in affordable housing ventures.
Long-term implications could include slower adoption of modernized standards that aim to enhance program efficiency and equity. If delays persist, it might signal broader challenges in HUD's regulatory agenda, such as resource constraints or external pressures from economic factors like rising interest rates. Different perspectives highlight this tension: housing advocates may see the delay as a missed opportunity to bolster tenant rights sooner, while administrators appreciate the breathing room to integrate changes without errors. Ultimately, the delay underscores the trade-offs in federal rulemaking, where ambition for reform must align with practical implementation capacities.
Key Takeaways and Future Considerations
This latest extension by HUD ensures that revisions to critical HOME program rules do not take effect until well into 2026, providing stability but postponing intended improvements. As the April 30, 2026, date approaches, stakeholders will monitor for any further adjustments, weighing the benefits of preparation against the urgency of updating affordable housing policies.