HUD Delays Implementation of the HOME Final Rule Until April

HUD has announced a postponement of the effective date for its recently published HOME Final Rule, pushing its implementation from Feb. 5, 2025, to April 20, 2025. This decision follows a directive issued by President Trump on Jan. 20, 2025, as part of a broader regulatory review process applied to federal rules that have been finalized but not yet taken effect.

The HOME Final Rule, which was originally published in the Federal Register on Jan. 6, represents a significant update to the regulations governing the HOME Investment Partnerships (HOME) Program. Last month, we discussed how the updates aim to simplify and modernize program requirements, better align HOME with other federal housing initiatives, and incorporate recent legislative changes. Additionally, minor revisions were made to the regulations for the Community Development Block Grant (CDBG) and Section 8 Housing Choice Voucher programs to ensure consistency across federal housing policies.

As part of the administration’s transition, however, the President issued a memorandum titled “Regulatory Freeze Pending Review.” This directive instructed federal agencies to pause the implementation of pending regulations for at least 60 days to allow for a comprehensive review of their policy implications. HUD has extended the delay beyond this minimum period, opting for a 90-day postponement to allow for a thorough assessment of any legal, factual, or procedural issues related to the rule.

Implications of the Delay for Housing Programs

At this stage, the delay does not indicate any changes to the substance of the HOME Final Rule. Rather, it allows HUD additional time to evaluate the rule in light of the new administration’s priorities. For owners, developers, and program administrators who have been preparing for compliance, this extension provides extra time to assess potential impacts and adjust their plans accordingly.

One of the key aspects of the HOME Final Rule is its alignment of Low HOME Rents with Low-Income Housing Tax Credit (LIHTC) rents, simplifying compliance for sites that receive funding from both sources. The rule also introduces enhanced tenant protections, including standardized lease requirements, improved notice obligations for adverse actions, and stricter rules regarding unit entry and shared spaces. These provisions remain unchanged but will now take effect in April.

HUD has said that this delay is strictly procedural. HUD hasn’t indicated that any substantive modifications to the HOME Final Rule are under consideration at this time. But stakeholders should stay alert for any further announcements as the review process unfolds. For now, those involved in the HOME program can continue operating under the existing regulatory framework until the revised rules officially take effect in April.