Committee Examines Reforms to HOME Program to Reduce Housing Construction Costs

The U.S. House Committee on Financial Services convened on July 17, 2025, to discuss the HOME 2.0 initiative, aimed at addressing the ongoing housing shortage through modern solutions. The meeting focused on the challenges and potential reforms within the HOME program, which is crucial for providing affordable housing to low and moderate-income families.

The session began with a call for streamlining the environmental review process associated with HOME funding. Witnesses emphasized that the current requirements, governed by the National Environmental Policy Act (NEPA), often lead to duplicative reviews that extend project timelines without enhancing environmental outcomes. They advocated for a unified review process to reduce complexity and expedite housing development.

Further discussions highlighted the burdens imposed by the Davis-Bacon Act, which mandates prevailing wage rates for construction projects funded by HOME dollars. Witnesses noted that these requirements can deter local contractors, particularly in rural areas, due to the administrative complexities involved. This situation not only increases construction costs but also limits the availability of skilled labor, exacerbating the housing crisis.

The committee members expressed a shared commitment to enhancing the HOME program while ensuring adequate funding remains intact. They recognized the importance of maintaining this federal block grant, which is uniquely focused on supporting affordable housing initiatives for those with lower incomes.

As the meeting progressed, witnesses provided insights into the potential for bipartisan solutions to reform the HOME program. They underscored the necessity of collaboration between federal, state, and local governments to effectively tackle housing shortages and improve the quality of multifamily rental housing.

In conclusion, the committee's discussions underscored a collective urgency to modernize the HOME program through sensible reforms that do not compromise funding. The meeting concluded with a commitment to continue exploring viable solutions to enhance affordable housing access across the nation.