HOME Rulemaking Proposes to Remove Tenant Protections, Among Other Changes; Comments Due June 1
May 11, 2026
By Renee Williams, NLIHC Senior Advisor for Public Policy and Libby O’Neill, NLIHC Senior Policy Analyst
On April 30, 2026, HUD proposed to remove tenant protections from HOME Investment Partnerships Program (HOME) regulations finalized in 2025, among other changes. In its proposal, HUD specifically declines to require a HOME tenancy addendum that contains important tenant protections. Instead, unless otherwise noted, HUD is proposing “to revert to tenant protections as they existed prior to the 2025 Final Rule.”
HUD’s proposal has initiated a 30-day public comment period, with comments due June 1.
Brief Background
HUD finalized changes to HOME regulations in July 2013. In 2024, HUD proposed additional changes, finalizing them in January 2025 (2025 HOME Final Rule). As NLIHC noted at the time, the HOME Final Rule reflects many NLIHC recommendations and includes strengthened tenant protections. HUD has since indefinitely delayed implementation of aspects of the 2025 Final Rule, including tenant protections. In April 2026, HUD published a “supplemental notice of proposed rulemaking” (2026 Supplemental Proposal), initiating a 30-day comment period ending June 1.
For additional background on HOME, see the 2026 Advocates’ Guide, 5-1.
2026 Proposed Changes
The following discussion briefly categorizes and summarizes many aspects of the 2026 Supplemental Proposal; however, this is not a comprehensive description. Because HOME includes rental housing, tenant-based assistance, and security deposit assistance, readers should closely compare the 2025 Rule with the proposed regulatory text to better understand how HUD’s latest proposal would specifically affect regulations for each type of assistance.
Tenant Protections
The 2026 Supplemental Proposal seeks to eliminate a series of HOME tenant protections included in the 2025 HOME Final Rule. For example, regarding HOME rental housing tenants, HUD is now proposing to remove 2025 Rule protections such as:
- A requirement to relocate tenants if a life-threatening deficiency cannot be resolved the same day. Under the HOME Final Rule, relocation is required until the repairs are complete, and at no additional cost to the tenant.
Requirements regarding security deposits, allowing tenants to organize, and confidentiality of personally identifiable information.
Protections against “unreasonable interference or retaliation.”
Notice requirements regarding a change in property ownership and management.
Source of income protections beyond protections for Housing Choice Voucher holders.
A requirement that the written lease include owner, management staff, and participating jurisdiction contact information.
Importantly, HUD’s proposed regulatory text retains language requiring inclusion of the “Violence Against Women Act” (VAWA) lease term/addendum.
Health and Safety
The 2026 Supplemental Proposal seeks to make changes regarding tenant health and safety, such as:
- Revising current regulations (24 CFR 92.251(f)(5)(i)) to require immediate correction and more frequent inspections of only “life-threatening” deficiencies. Current regulations require immediate correction and more frequent inspections in response to “health and safety deficiencies.” HUD states that requiring immediate corrections and more frequent inspections with respect to all health and safety deficiencies was unintentional and that the new procedures align with HUD’s new National Standards for Physical Inspection of Real Estate (NSPIRE) inspection standards.
Including carbon monoxide detector standards.
Removing notice requirements regarding environmental, health, or safety hazards that impact a HOME-assisted property.
Additionally, for “scattered site manufactured housing rental projects,” HUD proposes to not require more frequent inspections for projects that have “been found to have life-threatening deficiencies,” but instead to leave the question of inspection frequency up to participating jurisdictions.
Additional Notable Proposed Changes
HUD is also proposing to:
- Retain language regarding “good cause” to terminate a tenancy or refuse to renew a tenancy.
Define “scattered site manufactured housing rental project.” According to HUD, this proposal “is intended to incentivize participating jurisdictions to fund a form of housing that can be easily scalable, faster to build, and less expensive than traditional brick and mortar housing.”
Move to triennial income examinations for scattered site manufactured housing rental projects.
Permit owners “to limit or provide a preference to persons with disabilities even if the services provided at the HOME project can be provided in a nonsegregated setting.”
Remove ability for participating jurisdictions to exceed maximum per unit subsidies for projects that meet green building standards.
The 2026 Supplemental Proposal preamble also references immigration restrictions and verification requirements, stating that HUD “reminds HOME program recipients that grants must be administered in accordance with all applicable immigration restrictions and requirements, including the eligibility and verification requirements that apply under title IV of the ‘Personal Responsibility and Work Opportunity Reconciliation Act of 1996,’ as amended … (PRWORA) and any applicable requirements that HUD, the Attorney General, or the U.S. Citizenship and Immigrations Services may establish from time to time to comply with PRWORA.” For more information about HUD’s 2025 notice regarding PRWORA, see Memo, 12/22/25.
What’s Next
NLIHC is continuing to analyze HUD’s proposal. Comments are due June 1, 2026, at 11:59 pm ET. NLIHC will share additional information about commenting in future editions of Memo.
Read HUD’s 2026 Supplemental Proposal here.