This week, Senators Mike Rounds (R-SD) and Tina Smith (D-MN) reintroduced the Rural Housing Service Reform Act of 2025 (one-pager | full text). This measure is designed to modernize Rural Housing Service programs of the U.S. Department of Agriculture (USDA) by preserving affordable rural housing; expanding homeownership opportunities; and improving program administration.
The bill would also address a longstanding issue with Section 515 properties by making it easier for non-profits to acquire aging properties and allowing rental assistance to remain in place when USDA mortgages mature. It would also make permanent a USDA pilot program that partners with Native Community Development Financial Institutions to provide mortgage loans in Native communities. Additionally, the legislation seeks to align rental assistance policies of the USDA with those of the Department of Housing and Urban Development (HUD); modernize the foreclosure process to protect residents and preserve affordability; and streamline the home repair loan program. The measure would also invest in IT upgrades to speed up loan processing and reduce administrative burden; allow 502 loan guarantees for properties with accessory dwellings or in-home daycares; and require the USDA Rural Housing Service to accelerate the approval process for the 502 and 504 loan programs.
For more information, contact RCRC Senior Policy Advocate, Tracy Rhine.