I still can't reproduce with Trusty even with a directory with spaces.
$ mkdir $HOME/'DIR WITH SPACES'
$ echo $HOME/DIR<Tab>
produces
$ echo /home/mathew/DIR\ WITH\ SPACES/
$ apt list bash bash-completion
Listing... Done
bash/trusty-security,trusty-updates,now 4.3-7ubuntu1.5 amd64 [installed]
bash-completion/trusty-updates,now 1:2.1-4ubuntu0.1 all [installed]
** Tags added: precise
** Changed in: bash-completion (Ubuntu)
Importance: Undecided => Low
** Changed in: bash-completion (Ubuntu)
Status: Incomplete => Confirmed
** Tags added: regression-release
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https://bugs.launchpad.net/bugs/890913
Title:
Typing "prg $HOME/<tab>" expands to "prg \$HOME/"
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