HR4989-119

What This Bill Does

The Streamlining Rural Housing Act requires the HUD Secretary and Agriculture Secretary to enter into a memorandum of understanding within 180 days. The MOU must evaluate categorical exclusions for HUD- and USDA-funded housing projects, develop a process to designate a lead agency between HUD and USDA, streamline adoption of environmental impact statements and environmental assessments approved by the other agency for jointly funded projects, maintain compliance with 24 CFR part 58 environmental regulations as in effect on January 1, 2025, and evaluate a joint physical inspection process. Within the same 180-day period, HUD and USDA must create an advisory working group with rural and non-rural stakeholders, including affordable housing nonprofits, state housing and housing finance agencies, nonprofit and for-profit home builders and developers, property management companies, multifamily property owners and operators, public housing agencies, assisted-housing residents and representatives, and housing contract administrators. Within one year, the Secretaries must report to Senate Banking and House Financial Services with recommendations to improve efficiency and effectiveness without materially reducing resident safety, shifting long-term costs onto residents, or undermining residents' environmental standards.

Who Benefits and How

Affordable housing developers benefit if HUD and USDA create clearer lead-agency and environmental-review adoption processes for jointly funded projects. Rural housing nonprofits benefit from a stakeholder role in advising how to streamline HUD and USDA housing project reviews. Residents in assisted housing benefit from statutory guardrails against streamlining that reduces safety, shifts long-term costs, or undermines environmental standards. State housing finance agencies benefit from a forum to identify duplicative inspections and environmental review steps.

Who Bears the Burden and How

HUD housing staff must negotiate the MOU, participate in the working group, and report recommendations within one year. USDA rural housing staff must do the same for USDA-funded housing projects and joint environmental reviews. Advisory working group members must consult on implementation across rural and non-rural stakeholder categories. Federal housing oversight committees must evaluate recommendations for legislative, regulatory, or administrative changes.

Key Provisions

• Requires HUD and USDA to enter an MOU within 180 days.
• Directs evaluation of categorical exclusions, lead-agency designation, environmental document adoption, part 58 compliance, and joint inspections.
• Creates an advisory working group of housing nonprofits, agencies, builders, developers, managers, owners, residents, and administrators.
• Requires a congressional report within one year with streamlining recommendations.
• Protects resident safety, long-term cost, and environmental-standard guardrails in the recommendations.