Flood and Cleaver examine reforms to HUD's HOME Investment Partnership Program

The U.S. House Committee on Financial Services convened on July 17, 2025, to address the urgent housing shortage in the country, focusing on the HOME Investment Partnership Program. This program, established in 1990, provides crucial funding to states and municipalities for building and rehabilitating affordable housing. During the meeting, committee members emphasized the need for a comprehensive review and modernization of the HOME program to better tackle rising housing costs.

Chairman Flood highlighted the pressing issue of housing supply, stating that increasing the availability of affordable housing is essential to curbing escalating costs. He noted that while rental assistance and other demand-side subsidies are important, they cannot resolve the fundamental supply problem. Flood identified four key regulatory challenges—environmental review requirements, Build America, Buy America mandates, Davis-Bacon wage requirements, and Section 3 contractor stipulations—that contribute to delays and increased costs in housing projects. He expressed a commitment to reform these areas to facilitate more efficient use of HOME funds.

Ranking Member Cleaver echoed these sentiments, stressing the importance of the HOME program in supporting affordable housing initiatives. He pointed out that the program has successfully leveraged significant private investment and has built over 1.4 million affordable homes. However, he acknowledged that the program operates under outdated regulations that hinder its effectiveness. Cleaver emphasized the need for legislative action to streamline processes and reduce unnecessary burdens on housing providers.

The committee's discussions reflect a bipartisan effort to revitalize the HOME program, with both leaders committed to addressing the barriers that prevent the construction of affordable housing. As they move forward, the committee aims to incorporate feedback from various stakeholders to ensure that the program meets the needs of communities across the nation. The outcome of this hearing could lead to significant changes in how affordable housing is funded and developed, ultimately impacting countless families struggling with housing costs.