Bipartisan legislation unveiled on May 1 by U.S. Sen. Mike Rounds (R-SD) would significantly reform the U.S. Department of Agriculture’s (USDA) Rural Housing Service.
“This legislation makes important improvements and updates to the Rural Housing Service that will create and preserve affordable housing opportunities in South Dakota,” Sen. Rounds said. “As we face an affordable housing crisis across the nation, I look forward to working with my colleagues to get these important, bipartisan updates signed into law.”
Sen. Rounds signed on as the lead original cosponsor of the Rural Housing Service Reform Act of 2023, S. 1389, which is sponsored by U.S. Sen. Tina Smith (D-MN) to reform the Rural Housing Service, which offers numerous programs to build or improve housing and essential community facilities in rural areas, including loans, grants and loan guarantees for single- and multifamily housing, childcare centers, fire and police stations, hospitals, libraries, nursing homes, schools, first responder vehicles and equipment, and housing for farm laborers, among others.
Specifically, S. 1389 would make it easier for nonprofits to acquire Section 515 properties, which were financed by the USDA decades ago and now have maturing mortgages, according to a bill summary provided by Sen. Daines’ staff.
Additionally, the measure would expand an existing USDA pilot program, in partnership with Native Community Development Financial Institutions, to provide home loan assistance to Native American borrowers, and would make investments in IT so that the USDA can more quickly process loans, the summary says.
The USDA’s method of determining incomes would be brought in line with the U.S. Department of Housing and Urban Development’s practices under the bill, and the USDA’s foreclosure process would be updated to cut red tape and ensure USDA-owned properties stay affordable, among several other provisions.
“We know that the housing crisis is hurting communities across the country, and the problem is particularly acute in rural places,” said Sen. Smith. “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.”