This bill, titled the HOME Reform Act of 2025 , aims to amend the Cranston-Gonzalez National Affordable Housing Act to encourage the expansion of decent, safe, sanitary, and affordable housing, with a primary focus on rental housing. It redefines "low-income families" for various assistance types to include those with household incomes not exceeding 100 percent of the area median income, adjusted for family size. The bill also introduces a definition for "infill housing project" to promote residential development on previously disturbed land within municipalities. The legislation grants participating jurisdictions greater flexibility by removing federal restrictions on their choice of housing activities, such as rehabilitation or new construction. Significantly, it allows HOME funds to be used for infrastructure improvements like water lines, roads, and utility connections in non-entitlement areas, provided these improvements are directly related to HOME-assisted or Section 42 housing. This provision clarifies that such infrastructure funding does not impose HOME program requirements on housing that only benefits from these improvements. For affordable rental housing, the bill establishes an exception, allowing units occupied by tenants receiving Housing Choice Vouchers to qualify as affordable if rent contributions and total rent meet program limits. In homeownership, it increases the maximum acquisition price to 110 percent of the median purchase price and introduces mechanisms for maintaining long-term affordability, such as shared equity ownership models or community land trusts. Furthermore, it provides specific exceptions to income qualifications for military members and heirs of deceased owners under certain conditions. To streamline processes, the bill removes the expiration of the right to draw HOME Investment Trust Funds and adjusts rules for recapturing uninvested funds reserved for Community Housing Development Organizations. It expands the small-project exemption for labor requirements from 12 to 24 units and introduces categorical exemptions from environmental review for activities like new construction infill housing, property acquisition, rehabilitation projects, and new construction of 15 units or less. The bill also seeks to eliminate duplicative environmental reviews and exempts HOME activities from "Build America, Buy America" requirements and certain Section 3 labor requirements for small projects or jurisdictions with limited allocations.