The bill reauthorizes the HOME Investment Partnerships Program, significantly increasing its authorized appropriations. It allocates $5 billion for fiscal year 2025, rising incrementally to over $6 billion by fiscal year 2029. Additionally, the legislation increases the percentage of program funds that can be used for administration from 10 percent to 15 percent, providing more resources for program oversight.

Reforms to program administration include modifications to participating jurisdiction qualification thresholds, which will now be adjusted for inflation annually after fiscal year 2025. The bill also clarifies the process for reallocating funds, allowing the Secretary to remove non-compliant jurisdictions from eligibility for reallocations. Amendments to the definition of affordable housing introduce exceptions for foreclosures and situations where existing affordable housing is no longer financially viable due to unforeseen circumstances.

A new category for small-scale housing, defined as housing with not more than four rental units, is established with alternative requirements for qualifying as affordable. The legislation reforms homeownership resale restrictions, allowing participating jurisdictions to set formulas for resale prices that provide owners a reasonable return on investment or to recapture the initial investment. It also permits community land trusts to acquire housing under specific conditions and provides for the suspension or waiver of requirements for military members or heirs of deceased owners.

The bill eliminates the commitment deadline for funds, providing greater flexibility for participating jurisdictions. It strengthens property inspection requirements, mandating on-site inspections by local governments and adherence to national standards for states, with results to be publicly reported. Furthermore, enforcement and penalties for noncompliance are enhanced, including the authority to reduce payments to jurisdictions that misuse funds. A new HOME Loan Guarantee Program is established, authorizing the Secretary to guarantee notes or obligations issued by participating jurisdictions to finance affordable housing development and preservation, with an aggregate principal amount of up to $2 billion for fiscal year 2025.

Rules related to Community Housing Development Organizations (CHDOs) are modified, including a revised definition for 'community land trust' that emphasizes long-term affordability and preemptive purchase options. The bill also adjusts the CHDO set-aside, allowing uninvested funds to be made available for any eligible activities after 24 months, regardless of CHDO participation. Finally, the legislation includes various technical corrections to update statutory references and correct minor textual errors within the Cranston-Gonzalez National Affordable Housing Act.