CASDA Proposes Raising HOME Program Unit Threshold to Enhance Rural Housing Projects

On July 17, 2025, the U.S. House Committee on Financial Services convened to address the pressing issue of housing shortages through the HOME 2.0 initiative. This meeting highlighted the challenges faced by rural communities in securing adequate housing and the need for reforms to existing programs.

A significant point of discussion was the proposal to increase the threshold for Davis-Bacon requirements to 50 housing units. This change aims to streamline the administrative process for smaller projects, particularly in rural areas where construction often involves fewer units. Witnesses from various organizations, including CASDA, expressed unanimous support for this adjustment, arguing that it would enable quicker project completions and make federal funds stretch further. The consensus was that raising the threshold would alleviate bureaucratic burdens, allowing communities to focus on building essential housing rather than navigating complex regulations.

Congressional representatives, including those from rural districts, voiced concerns about the feasibility of completing 50-unit projects in smaller towns. Some lawmakers suggested conducting surveys to better understand the housing landscape in these areas, as many rural communities struggle to initiate even smaller projects. The dialogue underscored the unique challenges faced by rural populations, where labor shortages and limited resources can hinder development efforts.

Additionally, the meeting addressed the long-overdue reauthorization of the HOME program, which has not been updated since 1992. Representatives emphasized the need for reforms to enhance the program's effectiveness and responsiveness to current housing demands. The proposed changes aim to shorten timelines for project approvals and increase the overall supply of affordable housing, which is critical for many constituents struggling with housing costs.

The discussions at this meeting reflect a growing recognition of the need for targeted solutions to address housing shortages, particularly in underserved rural areas. As lawmakers continue to explore reforms, the implications for communities across the nation could be significant, potentially leading to improved access to affordable housing and a more efficient use of federal resources. The committee's ongoing efforts will be crucial in shaping the future of housing policy and addressing the urgent needs of American families.