Congress Considers Environmental Review Reforms to Accelerate Affordable Housing Projects

The U.S. House Committee on Financial Services convened on July 17, 2025, to discuss HOME 2.0: Modern Solutions to the Housing Shortage. The meeting focused on addressing the barriers to affordable housing and the potential reforms needed to enhance the effectiveness of the HOME program.

The session began with testimonies highlighting the struggles faced by essential workers, such as environmental service employees and special needs bus drivers in Tuscaloosa City Schools, who often cannot afford homes. Witnesses emphasized the need for Congress to collaborate with state and local governments to remove obstacles to affordable starter homes.

One key discussion point was the environmental review process associated with the HOME program. A witness, Miss Potts, noted that streamlining this process could significantly reduce the time required to move from concept to project completion. She explained that easing federal regulations would not only speed up housing projects but also attract more contractors willing to bid on these projects. Many small contractors currently avoid participation due to the extensive paperwork involved in compliance.

Mr. Oberdorf further elaborated on the burdens imposed by environmental reviews, stating that they often lead to project delays. He pointed out that when HOME funds are used to fill financial gaps, other project timelines can be adversely affected. He stressed the importance of finding a balance in environmental reviews to facilitate timely housing development.

The meeting concluded with a consensus on the need for reform in the HOME program to address these challenges. The committee members recognized that improving the efficiency of the environmental review process could play a crucial role in alleviating the housing shortage and making homeownership more accessible for low-income individuals and families. Further discussions and follow-up actions are anticipated as the committee continues to explore solutions to the housing crisis.