Sen. Budd Introduces Legislation to Improve Home Ownership Opportunities
This week, Senator Ted Budd (R-N.C.) introduced legislation to expand and modernize eligibility requirements for the U.S. Department of Housing and Urban Development’s (HUD) Home Investment Partnerships (HOME) Program. These funds support the construction of affordable owner-occupied homes, housing rehabilitation, and first-time home buyers. The goal of the legislation is to promote more affordable homeownership without increasing federal spending, allow Americans to repair their homes after disasters, and encourage the construction of new affordable homes.
Read the full bill text HERE.
“For too many families, the costs of buying a home hold them back from chasing this key component of the American Dream. With a shortage of affordable homes and rising demand, first-time homeowners must scrape together substantial savings just to cover closing costs and initial expenses, while shouldering high rents. My HOME Expansion Act will help more lower-income families afford homes and increase supply by expanding eligibility to existing assistance programs, without increasing federal spending,” said Senator Budd.
Background on the legislation
Home funds six broad activities: new construction of owner-occupied housing, rehabilitation of owner-occupied housing, homebuyer assistance, new construction of rental housing, rehabilitation or acquisition of rental housing, and tenant-based rental assistance. Each year, HUD distributes 40% of appropriated HOME funds to states and 60% to eligible localities.
The HOME Expansion Act would:
Expand eligibility for new construction or Low-Income Housing Tax Credit (LIHTC) projects in areas not already receiving assistance from the Community Development Block Grant (CDBG) program.
Modernize homeownership assistance by increasing the maximum purchase price allowed to receive HOME Program downpayment assistance from 95% to 110%.
In the Charlotte metropolitan area, this makes a $451,500 home eligible for HOME Program downpayment assistance, versus the current $390,000 requirement. The average single-family home price is $410,470.
