HUD Delays Key HOME Rule Provisions to April 2026

Green Building Incentives and Tenant Protections Postponed

On October 22, 2025, the Department of Housing and Urban Development issued a Federal Register notice that extends the implementation of two key provisions of the final HOME rule: incentives for green building standards and comprehensive tenant protections. Most other parts of the rule have already taken effect as of April 20, 2025, with jurisdictions required to comply by April 20, 2026. This is the third delay for these provisions since the rule's original publication in January 2025, all of which are due to the Trump administration's regulatory review process.

What Got Delayed to April 30, 2026

The delay applies to only two specific sections of the HOME Final Rule. 24 CFR 92.250(c), the green building standards provision, would allow participating jurisdictions to exceed per-unit dollar limits by up to 10% for projects meeting eligible green building standards.

24 CFR 92.253 addresses tenant protections, including requirements for a standardized HOME tenancy addendum such as security deposit limits (up to two months' rent), rights to organize tenant associations, protection against retaliatory actions, improved maintenance standards, and detailed notice requirements for evictions and lease non-renewals.

These provisions have experienced the longest delays because they involve significant policy expansions that the current administration is reviewing. The green building incentive increases costs and administrative complexity, while the tenant protection package significantly broadens federal involvement in landlord-tenant relationships for HOME-assisted properties.

Timeline of Regulatory Delays

The HOME Final Rule has faced several delays since its publication on January 6, 2025. Originally set to take effect on February 5, 2025, it was first postponed by 90 days on February 3, 2025, due to President Trump's January 20 "Regulatory Freeze Pending Review" memorandum. This pushed the effective date to April 20, 2025.

On April 17, 2025, HUD announced a second selective delay, allowing most provisions to take effect on April 20, 2025, but postponing the green building and tenant protection provisions until October 30, 2025. HUD said it needed to "seek further public comment" on these specific provisions.

The October 22, 2025, Federal Register notice extends these two provisions by an additional six months to April 30, 2026. Although HUD provided limited further explanation for this recent delay, the significant losses of experienced HUD staff are likely contributing to it.

What's Already in Effect

Most of the HOME Final Rule took effect on April 20, 2025, marking the program's first major regulatory update since 2013. Jurisdictions must fully comply by April 20, 2026.

Active provisions include:

Increased maximum per-unit subsidy caps (from 240% to 270% of Section 234 limits)

Expanded CHDO eligibility requirements

Streamlined procedures for small rental projects (1-4 units)

Updated income determination procedures aligned with HOTMA

Extended homebuyer unit sales deadlines (9 to 12 months)

Acceptance of NSPIRE inspections from other programs

Adjusted affordability periods with a 20-year minimum for newly constructed rental housing

What Remains Pending

The 10% green building subsidy bonus and the comprehensive tenant protection package are delayed until April 30, 2026. These make up about 2% of the rule's total provisions but hold significant policy importance.

Tenant protections are especially scrutinized because they extend federal regulation into areas usually governed by state and local laws. This latest delay gives HUD another six months to complete its review, gather additional public comments, or suggest changes to these provisions.

Key Takeaway

HUD has confirmed the delay until April 30, 2026, for green building incentives and tenant protections within the HOME Final Rule, while most other modernizations are already progressing. The selective delay highlights ongoing policy tensions between streamlining the $1.4 billion annual program and expanding federal protections.

Participating jurisdictions can now implement the bulk of the rule's streamlining provisions while awaiting final decisions on the more contentious policy expansions.