By admin 
WASHINGTON, D.C. (WNCN) — A new federal housing law is designed to make it easier for
more North Carolina residents to buy a home.
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The legislation, known as the HOME Expansion Act and included in the broader 21st Century Road to Housing Act, updates the federal HOME Investment Partnerships Program by helping expand eligibility for some homebuyers, raising the purchase price limit for homes that qualify for down payment assistance, and allowing more infrastructure costs to be covered when building new houses.
According to North Carolina Sen. Ted Budd, who introduced the bill, the law targets two of the biggest barriers facing prospective homeowners.
“The price of homes has just gotten out of reach for so many, especially for those that are trying to buy their home for the first time,” he said. “The other is there’s just not enough supply.”
To address the shortage, according to Budd, the law expands what the HOME program can fund by allowing communities to use the program for infrastructure tied to new housing developments, including sewer, water and telecommunications. It also raises the maximum home price eligible for HOME down payment assistance.
In Mecklenburg County, for example, buyers can now qualify for assistance on homes costing more than $450,000. Previously, eligibility was limited to homes priced at about $390,000, according to information provided by Budd’s office.
Stephanie Watkins-Cruz, director of housing policy for the North Carolina Housing Coalition, said those updates better reflect today’s housing market.
“It recognizes the cost of living and the price of homes has gone up so much,” Watkins-Cruz said. “I think it’ll give folks more options.”
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According to Watkins-Cruz, expanding eligibility means more North Carolina families could qualify for assistance than in the past, but expanding access alone won’t solve the state’s affordability challenges without targeted investment.
“Now that we change the rules to expand eligibility, that means more people will have access to these resources that will be stretched even thinner than they already are,” she said.
Budd disagreed, saying the issue isn’t a lack of funding.
“We think there’s plenty of funding right now,” he said. “The problem is there’s been money there. It just hasn’t been able to be accessed like it should have been.”
For Watkins-Cruz, the legislation represents progress, but not the finish line.
“The bigger message is Congress is recognizing how far up the income ladder affordability is becoming an issue,” she said. “Recognizing the problem and addressing the policy pieces is one step. But now it’s time for them to fund it.”
The law is now in effect, but according to Budd, it will take a few months for the U.S. Department of Housing and Urban Development to implement the changes before North Carolina residents begin seeing the impact.
For changes this big, Watkins-Cruz said it may take much longer.
“The prices will go down over time,” she said. “But what we know from studying markets is that it takes at least five to eight years and usually it’s more like 10 to 20.”
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