The HOME Investment Partnerships Program Expansion Act aims to broaden the permissible uses of HOME funds and adjust affordable homeownership criteria. A key provision allows participating jurisdictions that do not receive Community Development Block Grant (CDBG) assistance to utilize HOME funds for essential infrastructure improvements. These improvements, such as water and sewer lines, sidewalks, and utility connections, must be directly related to and located within or immediately adjacent to housing assisted by the HOME program or the Low-Income Housing Tax Credit (LIHTC) program. This expansion ensures that foundational community needs supporting affordable housing can be addressed.

The bill significantly modifies affordable homeownership qualifications under the HOME program. It increases the maximum allowable purchase price for affordable housing from 95 percent to 110 percent of the area's median purchase price. To ensure sustained affordability, the bill mandates that long-term affordability be maintained through mechanisms like shared equity ownership models, community land trusts, or limited equity cooperatives, using tools such as purchase options or rights of first refusal.

Furthermore, the legislation introduces specific exceptions to income qualifications for certain groups. Participating jurisdictions may waive or suspend income requirements for military members who receive deployment orders or permanent change of station orders. Additionally, housing will continue to qualify as affordable after an owner's death if it becomes the principal residence of an heir or beneficiary who assumes the deceased owner's obligations. These provisions aim to provide flexibility and support for specific populations in accessing and maintaining affordable homeownership.