Senators Smith (D-MN) & Rounds (R-SD) Reintroduce “Rural Housing Service Reform Act” with Additional Cosponsors

U.S. Senator Mike Rounds (R-SD) and Tina Smith (D-MN) reintroduced their bipartisan “Rural Housing Service Reform Act” (S.1260) to improve federal rural housing programs, strengthen the supply of affordable housing in rural communities, and modernize and improve the housing programs run by the U.S. Department of Agriculture’s (USDA) Rural Housing Service (RHS). The need for such reforms is underscored by the fact that between 2010 and 2020, there was only a 1.7% increase in rural housing units available, leaving many communities struggling with limited affordable housing options. 

The “Rural Housing Service Reform Act” was the result of work by Senator Smith and Senator Rounds conducted while the two senators served as chair and ranking member, respectively, of the Senate Banking Committee’s Subcommittee on Housing, Transportation, and Community Development. “This legislation is the direct result of bipartisan hearings and conversations with stakeholders who helped identify ways we can make federal rural housing programs work better for people struggling to find a safe, affordable place to live,” said Senator Smith in a statement. The “Rural Housing Service Reform Act” is cosponsored by Senators Kevin Cramer (R-ND), Mike Crapo (R-ID), Steve Daines (R-MT), John Fetterman (D-PA), Jerry Moran (R-KS), Jeanne Shaheen (D-NH), Mark Warner (D-VA), and Raphael Warnock (D-GA). 

The “Rural Housing Service Reform Act” would streamline federal programs, remove barriers to homeownership, preserve existing affordable housing and rental assistance in rural areas– cutting red tape and encouraging public-private partnerships to increase investment in the country’s rural housing supply– by making Section 515 properties easier for non-profits to acquire, creating a permanent USDA pilot program, aligning USDA’s  income measuring to HUD, modernizing the USDA’s foreclosure process, updating home repair loan rules, expanding Sec. 502 loan guarantees to include accessory dwelling and home daycare, and requiring faster loan approval timelines.  

Read the bill text and see updated list of cosponsors here.  

Read Senator Smith’s press statement on the bill here.