HUD Delays Effective Date of Certain Provisions of HOME Final Rule, Including Tenant Protections

HUD published on April 17 a second delay in implementation of certain changes made to the HOME Investment Partnerships (HOME) program regulations. Changes to the HOME regulations published in the Federal Register on January 6 were originally to take effect on February 5 (see Memo, 1/13). However, a notice in the Federal Register on January 31 delayed implementation to April 20, citing President Trump’s “Regulatory Freeze Pending Review” memo (see Memo, 2/3). The delay was to “allow executive departments and agencies time to review any questions of fact, law, and policy that the rules may raise.”  

Based on the April 17 update, most of the rule will go into effect on the updated planned effective date of April 20; however, certain provisions are being further delayed and will be subject to further rulemaking. The provisions being delayed are:  

• American Dream Downpayment Initiatives – removal of Action Plan requirements for state governments;
• Maximum Per-Unit Subsidy Amount, Underwriting, and Subsidy Layering – Green Building Standard per unit subsidy revision; and
• Tenant Protections and Selection. 

The new effective date for these provisions is October 30, 2025. HUD will issue a separate Federal Register publication inviting public comment. 

While the final rule affects many areas pertaining to the HOME program, NLIHC submitted comments regarding the proposed changes focused on strengthening tenant protections for renters living in HOME-assisted properties and improvements to the provisions concerning Community Housing Development Organizations (CHDOs). The final rule issued on January 6 includes many recommendations made by NLIHC and greatly strengthens tenant protections and improves CHDO provisions. NLIHC summarized key changes in the HOME regulations regarding tenant protections (see Memo, 12/20/24) and Community Housing Development Organizations (CHDOs) (see Memo, 12/28/24). 

The April 17 update raises concerns about the eventual implementation of the new tenant protections provisions, which provide a baseline set of protections including the right to organize, limits on security deposits, and protection against retaliation. NLIHC will monitor the Federal Register for the public comment dates and post further updates in Memo to Members.  

Read the April 17 Federal Register notice at: https://bit.ly/42Ca4oo. 

Find the final Federal Register version of the final rule at: https://tinyurl.com/4asbbd54. 

Find an easier to read version of the final rule at: https://tinyurl.com/yes7k39n. 

Read more about HOME on page 5-1 of NLIHC’s 2024 Advocates’ Guide.