To reform rural housing programs, and for other purposes.
Sponsors
Legislative Progress
IntroducedMs. Smith (for herself, Mr. Rounds, Mr. Daines, Mr. Fetterman, …
Summary
What This Bill Does
The Rural Housing Service Reform Act of 2025 overhauls USDA rural housing programs to preserve aging affordable housing, expand homeownership for underserved communities, and modernize agency operations. It creates a permanent $200 million annual program to prevent rural multifamily housing from exiting the affordable housing stock when loans mature or face foreclosure.
Who Benefits and How
Rural multifamily property owners benefit significantly through loan restructuring options (interest reduction, payment deferral, debt reamortization) and 20-year rental assistance contract renewals that provide long-term income stability.
Low-income rural residents and farm laborers benefit from preserved affordable housing, expanded voucher eligibility when properties mature or are prepaid, and protection against displacement.
Native Community Development Financial Institutions (CDFIs) gain access to up to $50 million annually in direct loans for on-lending to Native American, Alaska Native, and Native Hawaiian homebuyers, plus operational grants equal to 20% of loan amounts.
Home-based childcare providers can now qualify for USDA housing loans without being disqualified by income-producing property restrictions.
Nonprofit housing organizations and Indian Tribes benefit from new grant programs for community development and technical assistance.
Who Bears the Burden and How
Federal taxpayers fund approximately $1 billion over 5 years for the housing preservation program ($200M/year), plus additional appropriations for staffing, IT upgrades, and Native CDFI programs.
USDA Rural Housing Service faces increased administrative workload from new reporting requirements, voucher adjustment processes, and 90-day application review mandates.
Government Accountability Office must conduct a technology modernization study.
Key Provisions
- Housing Preservation Program: Authorizes $200 million annually (FY 2026-2030) to preserve Section 514/515/516 multifamily properties through loan restructuring and 20-year rental assistance renewals
- Native CDFI Relending: Creates a $50 million annual set-aside for direct loans to Native CDFIs serving tribal communities, with matching requirement waivers for priority Tribal lands
- Expanded Loan Terms: Allows Section 502 loan refinancing with terms up to 40 years to prevent foreclosures
- Voucher Expansion: Extends rural housing voucher eligibility to all low-income households in properties that have matured, been prepaid, or foreclosed since 2005
- Childcare Exemption: Exempts licensed home-based childcare providers from income-producing property restrictions on USDA loans
- ADU Support: Allows rental income from accessory dwelling units to count toward loan qualification
- Application Processing: Establishes 90-day goal for loan application reviews with mandatory reporting on timeliness
Evidence Chain:
This summary is derived from the structured analysis below. See "Detailed Analysis" for per-title beneficiaries/burden bearers with clause-level evidence links.
Primary Purpose
Reforms USDA Rural Housing Service programs by establishing a housing preservation program, extending rental assistance contracts, expanding loan programs for Native CDFIs and low-income borrowers, and modernizing agency technology.
Policy Domains
Legislative Strategy
"Preserve aging rural multifamily housing stock, expand affordable housing access for underserved populations (Native Americans, low-income rural residents), and modernize USDA Rural Housing Service operations"
Likely Beneficiaries
- Low-income rural residents seeking affordable housing
- Rural multifamily housing property owners eligible for loan restructuring
- Native Community Development Financial Institutions (CDFIs)
- Federally recognized Indian Tribes and Native Hawaiian communities
- Rural community development organizations
- Nonprofit housing organizations
- Home-based childcare providers in rural areas
Likely Burden Bearers
- Federal taxpayers (through authorized appropriations of M/year for housing preservation, plus staffing/IT upgrades)
- USDA Rural Housing Service (increased administrative and reporting requirements)
- GAO (required technology study)
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
- "the_secretary"
- → Secretary of Agriculture
- "the_secretary"
- → Secretary of Agriculture
- "the_secretary"
- → Secretary of Agriculture
- "the_secretary"
- → Secretary of Agriculture
- "the_secretary"
- → Secretary of Agriculture
- "the_secretary"
- → Secretary of Agriculture
- "the_comptroller_general"
- → Comptroller General of the United States (GAO)
- "the_secretary"
- → Secretary of Agriculture
- "the_secretary"
- → Secretary of Agriculture
- "the_secretary"
- → Secretary of Agriculture
- "the_secretary"
- → Secretary of Agriculture
- "the_secretary"
- → Secretary of Agriculture
Note: The Secretary refers to Secretary of Agriculture consistently throughout all titles of this bill
Key Definitions
Terms defined in this bill
Has the meaning given the term Native in section 3(b) of the Alaska Native Claims Settlement Act (43 U.S.C. 1602(b))
A private, nonprofit community-based housing or community development organization; a rural community; or a federally recognized Indian Tribe
Has the meaning given in section 658P of the Child Care and Development Block Grant Act of 1990 (42 U.S.C. 9858n)
A single, habitable living unit with means of separate ingress and egress, that is usually subordinate in size, that can be added to, created within, or detached from a primary 1-family dwelling
A community development financial institution (as defined in section 103 of the Riegle Community Development and Regulatory Improvement Act of 1994) that primarily serves and is governed by Alaska Natives, members of Indian Tribes, or Native Hawaiians
A qualified private, nonprofit organization or public organization
Has the meaning given in section 658P of the Child Care and Development Block Grant Act of 1990 (42 U.S.C. 9858n)
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
Learn more about our methodology