Us Congress 2025-2026 Regular Session

Us Congress Senate Bill SB1260 Compare Versions

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Old	New	Differences
1	1	II
2	2	119THCONGRESS
3	3	1
4	4	STSESSION S. 1260
5	5	To reform rural housing programs, and for other purposes.
6	6	IN THE SENATE OF THE UNITED STATES
7	7	APRIL2, 2025
8	8	Ms. S
9	9	MITH(for herself, Mr. ROUNDS, Mr. DAINES, Mr. FETTERMAN, Mr.
10	10	C
11	11	RAPO, Mr. WARNER, Mr. CRAMER, Mr. WARNOCK, Mrs. SHAHEEN, and
12	12	Mr. M
13	13	ORAN) introduced the following bill; which was read twice and re-
14	14	ferred to the Committee on Banking, Housing, and Urban Affairs
15	15	A BILL
16	16	To reform rural housing programs, and for other purposes.
17	17	Be it enacted by the Senate and House of Representa-1
18	18	tives of the United States of America in Congress assembled, 2
19	19	SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 3
20	20	(a) S
21	21	HORTTITLE.—This Act may be cited as the 4
22	22	‘‘Rural Housing Service Reform Act of 2025’’. 5
23	23	(b) T
24	24	ABLE OFCONTENTS.—The table of contents of 6
25	25	this Act is as follows: 7
26	26	Sec. 1. Short title; table of contents.
27	27	TITLE I—STREAMLINING AND UPDATES
28	28	Sec. 101. Application of multifamily mortgage foreclosure procedures to multi-
29	29	family mortgages held by the Secretary of Agriculture and
30	30	preservation of the rental assistance contract upon foreclosure.
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34	34	Sec. 102. Study on rural housing loans for housing for low- and moderate-in-
35	35	come families.
36	36	Sec. 103. Authorization of appropriations for staffing and IT upgrades.
37	37	Sec. 104. Funding for technical improvements.
38	38	TITLE II—RURAL HOUSING PRESERVATION AND REVITALIZATION
39	39	Sec. 201. Permanent establishment of housing preservation and revitalization
40	40	program.
41	41	Sec. 202. Rental assistance contract authority.
42	42	TITLE III—NATIVE CDFI RELENDING
43	43	Sec. 301. Native CDFI relending program.
44	44	TITLE IV—SECTION 504 LOANS AND GRANTS
45	45	Sec. 401. Modifications to loans and grants for minor improvements to farm
46	46	housing and buildings; income eligibility.
47	47	TITLE V—RURAL COMMUNITY DEVELOPMENT INITIATIVE
48	48	GRANTS
49	49	Sec. 501. Rural community development initiative.
50	50	TITLE VI—REPORTS
51	51	Sec. 601. Annual report on rural housing programs.
52	52	Sec. 602. GAO report on Rural Housing Service technology.
53	53	TITLE VII—RURAL HOUSING VOUCHER PROGRAM
54	54	Sec. 701. Adjustment to rural development voucher amount.
55	55	Sec. 702. Eligibility for rural housing vouchers.
56	56	Sec. 703. Amount of voucher assistance.
57	57	TITLE VIII—TRANSFERS TO NONPROFIT ORGANIZATIONS
58	58	Sec. 801. Transfer of multifamily rural housing projects.
59	59	TITLE IX—SECTION 502 LOANS AND GUARANTEES
60	60	Sec. 901. Extension of loan term.
61	61	Sec. 902. Release of liability for section 502 guaranteed borrower upon assump-
62	62	tion of original loan by new borrower.
63	63	Sec. 903. Department of Agriculture loan restrictions.
64	64	TITLE X—ACCESSORY DWELLING UNITS
65	65	Sec. 1001. Loan guarantees.
66	66	TITLE XI—TIME FRAME FOR COMPLETING APPLICATION REVIEW
67	67	Sec. 1101. Application review.
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71	71	TITLE I—STREAMLINING AND 1
72	72	UPDATES 2
73	73	SEC. 101. APPLICATION OF MULTIFAMILY MORTGAGE 3
74	74	FORECLOSURE PROCEDURES TO MULTI-4
75	75	FAMILY MORTGAGES HELD BY THE SEC-5
76	76	RETARY OF AGRICULTURE AND PRESERVA-6
77	77	TION OF THE RENTAL ASSISTANCE CON-7
78	78	TRACT UPON FORECLOSURE. 8
79	79	(a) M
80	80	ULTIFAMILYMORTGAGEPROCEDURES.—Sec-9
81	81	tion 363(2) of the Multifamily Mortgage Foreclosure Act 10
82	82	of 1981 (12 U.S.C. 3702(2)) is amended— 11
83	83	(1) in subparagraph (D), by striking ‘‘and’’ at 12
84	84	the end; 13
85	85	(2) in subparagraph (E), by striking the period 14
86	86	at the end and inserting ‘‘; or’’; and 15
87	87	(3) by adding at the end the following: 16
88	88	‘‘(F) section 514, 515, or 538 of the Hous-17
89	89	ing Act of 1949 (42 U.S.C. 1484, 1485, 18
90	90	1490p).’’. 19
91	91	(b) P
92	92	RESERVATION OF CONTRACT.—Section 521(d) 20
93	93	of the Housing Act of 1949 (42 U.S.C. 1490a(d)) is 21
94	94	amended by adding at the end the following: 22
95	95	‘‘(3) Notwithstanding any other provision of law in 23
96	96	managing and disposing of any multifamily property that 24
97	97	is owned or has a mortgage held by the Secretary, and 25
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101	101	during the process of foreclosure on any property with a 1
102	102	contract for rental assistance under this section— 2
103	103	‘‘(A) the Secretary shall maintain any rental as-3
104	104	sistance payments that are attached to any dwelling 4
105	105	units in the property; and 5
106	106	‘‘(B) the rental assistance contract may be used 6
107	107	to provide further assistance to existing projects 7
108	108	under 514, 515, or 516.’’. 8
109	109	SEC. 102. STUDY ON RURAL HOUSING LOANS FOR HOUSING 9
110	110	FOR LOW- AND MODERATE-INCOME FAMI-10
111	111	LIES. 11
112	112	Not later than 6 months after the date of enactment 12
113	113	of this Act, the Secretary of Agriculture shall conduct a 13
114	114	study and submit to Congress a publicly available report 14
115	115	on the loan program under section 521 of the Housing 15
116	116	Act of 1949 (42 U.S.C. 1490a), including— 16
117	117	(1) the total amount provided by the Secretary 17
118	118	in subsidies under such section 521 to borrowers 18
119	119	with loans made pursuant to section 502 of such Act 19
120	120	(42 U.S.C. 1472); 20
121	121	(2) how much of the subsidies described in 21
122	122	paragraph (1) are being recaptured; and 22
123	123	(3) the amount of time and costs associated 23
124	124	with recapturing those subsidies. 24
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128	128	SEC. 103. AUTHORIZATION OF APPROPRIATIONS FOR 1
129	129	STAFFING AND IT UPGRADES. 2
130	130	There is authorized to be appropriated to the Sec-3
131	131	retary of Agriculture for each of fiscal years 2026 through 4
132	132	2030 such sums as may be necessary for increased staff-5
133	133	ing needs and information technology upgrades to support 6
134	134	all Rural Housing Service programs. 7
135	135	SEC. 104. FUNDING FOR TECHNICAL IMPROVEMENTS. 8
136	136	(a) A
137	137	UTHORIZATION OFAPPROPRIATIONS.—There is 9
138	138	authorized to be appropriated to the Secretary of Agri-10
139	139	culture such sums as may be necessary for fiscal year 11
140	140	2026 for improvements to the technology of the Rural 12
141	141	Housing Service of the Department of Agriculture used 13
142	142	to process and manage housing loans. 14
143	143	(b) A
144	144	VAILABILITY.—Amounts appropriated pursuant 15
145	145	to subsection (a) shall remain available until the date that 16
146	146	is 5 years after the date of the appropriation. 17
147	147	(c) T
148	148	IMELINE.—The Secretary of Agriculture shall 18
149	149	make the improvements described in subsection (a) during 19
150	150	the 5-year period beginning on the date on which amounts 20
151	151	are appropriated under subsection (a). 21
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155	155	TITLE II—RURAL HOUSING 1
156	156	PRESERVATION AND REVI-2
157	157	TALIZATION 3
158	158	SEC. 201. PERMANENT ESTABLISHMENT OF HOUSING PRES-4
159	159	ERVATION AND REVITALIZATION PROGRAM. 5
160	160	Title V of the Housing Act of 1949 (42 U.S.C. 1471 6
161	161	et seq.) is amended by adding at the end the following: 7
162	162	‘‘SEC. 545. HOUSING PRESERVATION AND REVITALIZATION 8
163	163	PROGRAM. 9
164	164	‘‘(a) E
165	165	STABLISHMENT.—The Secretary shall carry 10
166	166	out a program under this section for the preservation and 11
167	167	revitalization of multifamily rental housing projects fi-12
168	168	nanced under section 514, 515, or 516. 13
169	169	‘‘(b) N
170	170	OTICE OFMATURINGLOANS.— 14
171	171	‘‘(1) T
172	172	O OWNERS.—On an annual basis, the 15
173	173	Secretary shall provide written notice to each owner 16
174	174	of a property financed under section 514, 515, or 17
175	175	516 that will mature within the 4-year period begin-18
176	176	ning upon the provision of the notice, setting forth 19
177	177	the options and financial incentives that are avail-20
178	178	able to facilitate the extension of the loan term or 21
179	179	the option to decouple a rental assistance contract 22
180	180	pursuant to subsection (f). 23
181	181	‘‘(2) T
182	182	O TENANTS.— 24
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186	186	‘‘(A) IN GENERAL.—On an annual basis, 1
187	187	for each property financed under section 514, 2
188	188	515, or 516, not later than the date that is 2 3
189	189	years before the date that the loan will mature, 4
190	190	the Secretary shall provide written notice to 5
191	191	each household residing in the property that in-6
192	192	forms them of— 7
193	193	‘‘(i) the date of the loan maturity; 8
194	194	‘‘(ii) the possible actions that may 9
195	195	happen with respect to the property upon 10
196	196	that maturity; and 11
197	197	‘‘(iii) how to protect their right to re-12
198	198	side in federally assisted housing, or how 13
199	199	to secure housing voucher, after that ma-14
200	200	turity. 15
201	201	‘‘(B) L
202	202	ANGUAGE.—Notice under this para-16
203	203	graph shall be provided in plain English and 17
204	204	shall be translated to other languages in the 18
205	205	case of any property located in an area in which 19
206	206	a significant number of residents speak such 20
207	207	other languages. 21
208	208	‘‘(c) L
209	209	OANRESTRUCTURING.—Under the program 22
210	210	under this section, in any circumstance in which the Sec-23
211	211	retary proposes a restructuring to an owner or an owner 24
212	212	proposes a restructuring to the Secretary, the Secretary 25
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216	216	may restructure such existing housing loans, as the Sec-1
217	217	retary considers appropriate, for the purpose of ensuring 2
218	218	that those projects have sufficient resources to preserve 3
219	219	the projects to provide safe and affordable housing for low- 4
220	220	income residents and farm laborers, by— 5
221	221	‘‘(1) reducing or eliminating interest; 6
222	222	‘‘(2) deferring loan payments; 7
223	223	‘‘(3) subordinating, reducing, or reamortizing 8
224	224	loan debt; 9
225	225	‘‘(4) providing other financial assistance, in-10
226	226	cluding advances, payments, and incentives (includ-11
227	227	ing the ability of owners to obtain reasonable re-12
228	228	turns on investment) required by the Secretary; and 13
229	229	‘‘(5) permanently removing a portion of the 14
230	230	housing units from income restrictions when sus-15
231	231	tained vacancies have occurred. 16
232	232	‘‘(d) R
233	233	ENEWAL OFRENTALASSISTANCE.— 17
234	234	‘‘(1) I
235	235	N GENERAL.—When the Secretary pro-18
236	236	poses to restructure a loan or agrees to the proposal 19
237	237	of an owner to restructure a loan pursuant to sub-20
238	238	section (c), the Secretary shall offer to renew the 21
239	239	rental assistance contract under section 521(a)(2) 22
240	240	for a term that is the shorter of 20 years and the 23
241	241	term of the restructured loan, subject to annual ap-24
242	242	propriations, provided that the owner agrees to bring 25
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246	246	the property up to such standards that will ensure 1
247	247	maintenance of the property as decent, safe, and 2
248	248	sanitary housing for the full term of the rental as-3
249	249	sistance contract. 4
250	250	‘‘(2) A
251	251	DDITIONAL RENTAL ASSISTANCE .—With 5
252	252	respect to a project described in paragraph (1), if 6
253	253	rental assistance is not available for all households 7
254	254	in the project for which the loan is being restruc-8
255	255	tured pursuant to subsection (c), the Secretary may 9
256	256	extend such additional rental assistance to unas-10
257	257	sisted households at that project as is necessary to 11
258	258	make the project safe and affordable to low-income 12
259	259	households. 13
260	260	‘‘(e) R
261	261	ESTRICTIVEUSEAGREEMENTS.— 14
262	262	‘‘(1) R
263	263	EQUIREMENT.—As part of the preserva-15
264	264	tion and revitalization agreement for a project, the 16
265	265	Secretary shall obtain a restrictive use agreement 17
266	266	that is recorded and obligates the owner to operate 18
267	267	the project in accordance with this title. 19
268	268	‘‘(2) T
269	269	ERM.— 20
270	270	‘‘(A) N
271	271	O EXTENSION OF RENTAL ASSIST -21
272	272	ANCE CONTRACT.—Except when the Secretary 22
273	273	enters into a 20-year extension of the rental as-23
274	274	sistance contract for a project, the term of the 24
275	275	restrictive use agreement for the project shall 25
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279	279	be consistent with the term of the restructured 1
280	280	loan for the project. 2
281	281	‘‘(B) E
282	282	XTENSION OF RENTAL ASSISTANCE 3
283	283	CONTRACT.—If the Secretary enters into a 20- 4
284	284	year extension of the rental assistance contract 5
285	285	for a project, the term of the restrictive use 6
286	286	agreement for the project shall be for the longer 7
287	287	of— 8
288	288	‘‘(i) 20 years; or 9
289	289	‘‘(ii) the remaining term of the loan 10
290	290	for that project. 11
291	291	‘‘(C) T
292	292	ERMINATION.—The Secretary may 12
293	293	terminate the 20-year use restrictive use agree-13
294	294	ment for a project before the end of the term 14
295	295	of the agreement if the 20-year rental assist-15
296	296	ance contract for the project with the owner is 16
297	297	terminated at any time for reasons outside the 17
298	298	control of the owner. 18
299	299	‘‘(f) D
300	300	ECOUPLING OFRENTALASSISTANCE.— 19
301	301	‘‘(1) R
302	302	ENEWAL OF RENTAL ASSISTANCE CON -20
303	303	TRACT.—If the Secretary determines that a loan ma-21
304	304	turing during the 4-year period beginning upon the 22
305	305	provision of the notice required under subsection 23
306	306	(b)(1) for a project cannot reasonably be restruc-24
307	307	tured in accordance with subsection (c) because it is 25
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311	311	not financially feasible or the owner does not agree 1
312	312	with the proposed restructuring, and the project was 2
313	313	operating with rental assistance under section 521 3
314	314	and the recipient is a borrower under section 514 or 4
315	315	515, the Secretary may renew the rental assistance 5
316	316	contract, notwithstanding any requirement under 6
317	317	section 521 that the recipient be a current borrower 7
318	318	under section 514 or 515, for a term of 20 years, 8
319	319	subject to annual appropriations. 9
320	320	‘‘(2) A
321	321	DDITIONAL RENTAL ASSISTANCE .—With 10
322	322	respect to a project described in paragraph (1), if 11
323	323	rental assistance is not available for all households 12
324	324	in the project for which the loan is being restruc-13
325	325	tured pursuant to subsection (c), the Secretary may 14
326	326	extend such additional rental assistance to unas-15
327	327	sisted households at that project as is necessary to 16
328	328	make the project safe and affordable to low-income 17
329	329	households. 18
330	330	‘‘(3) R
331	331	ENTS.— 19
332	332	‘‘(A) I
333	333	N GENERAL.—Any agreement to ex-20
334	334	tend the term of the rental assistance contract 21
335	335	under section 521 for a project shall obligate 22
336	336	the owner to continue to maintain the project 23
337	337	as decent, safe, and sanitary housing and to op-24
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341	341	erate the development as affordable housing in 1
342	342	a manner that meets the goals of this title. 2
343	343	‘‘(B) R
344	344	ENT AMOUNTS.—Subject to sub-3
345	345	paragraph (C), in setting rents, the Secretary— 4
346	346	‘‘(i) shall determine the maximum ini-5
347	347	tial rent based on current fair market 6
348	348	rents established under section 8 of the 7
349	349	United States Housing Act of 1937 (42 8
350	350	U.S.C. 1437f); and 9
351	351	‘‘(ii) may annually adjust the rent de-10
352	352	termined under clause (i) by the operating 11
353	353	cost adjustment factor as provided under 12
354	354	section 524 of the Multifamily Assisted 13
355	355	Housing Reform and Affordability Act of 14
356	356	1997 (42 U.S.C. 1437f note). 15
357	357	‘‘(C) H
358	358	IGHER RENT.— 16
359	359	‘‘(i) I
360	360	N GENERAL.—Subparagraph (B) 17
361	361	shall not apply if the Secretary determines 18
362	362	that the budget-based needs of a project 19
363	363	require a higher rent than the rent de-20
364	364	scribed in subparagraph (B). 21
365	365	‘‘(ii) R
366	366	ENT.—If the Secretary makes a 22
367	367	positive determination under clause (i), the 23
368	368	Secretary may approve a budget-based rent 24
369	369	level for the project. 25
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373	373	‘‘(4) CONDITIONS FOR APPROVAL .— 1
374	374	‘‘(A) P
375	375	LAN.—Before the approval of a 2
376	376	rental assistance contract authorized under this 3
377	377	section, the Secretary shall require, through an 4
378	378	annual notice in the Federal Register, the 5
379	379	owner to submit to the Secretary a plan that 6
380	380	identifies financing sources and a timetable for 7
381	381	renovations and improvements determined to be 8
382	382	necessary by the Secretary to maintain and pre-9
383	383	serve the project. 10
384	384	‘‘(B) A
385	385	UTOMATIC APPROVAL .—If a plan 11
386	386	submitted under subparagraph (A) is not acted 12
387	387	upon by the Secretary within 30 days of the 13
388	388	submission, the rental assistance contract is 14
389	389	automatically approved for not more than a 1- 15
390	390	year period. 16
391	391	‘‘(g) M
392	392	ULTIFAMILYHOUSINGTRANSFERTECHNICAL 17
393	393	A
394	394	SSISTANCE.—Under the program under this section, the 18
395	395	Secretary may provide grants to qualified nonprofit orga-19
396	396	nizations and public housing agencies to provide technical 20
397	397	assistance, including financial and legal services, to bor-21
398	398	rowers under loans under this title for multifamily housing 22
399	399	to facilitate the acquisition or preservation of such multi-23
400	400	family housing properties in areas where the Secretary de-24
401	401	termines there is a risk of loss of affordable housing. 25
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405	405	‘‘(h) ADMINISTRATIVEEXPENSES.—Of any amounts 1
406	406	made available for the program under this section for any 2
407	407	fiscal year, the Secretary may use not more than 3
408	408	$1,000,000 for administrative expenses for carrying out 4
409	409	such program. 5
410	410	‘‘(i) A
411	411	UTHORIZATION OFAPPROPRIATIONS.—There is 6
412	412	authorized to be appropriated for the program under this 7
413	413	section $200,000,000 for each of fiscal years 2026 8
414	414	through 2030. 9
415	415	‘‘(j) R
416	416	ULEMAKING.— 10
417	417	‘‘(1) I
418	418	N GENERAL.—Not later than 180 days 11
419	419	after the date of enactment of the Rural Housing 12
420	420	Service Reform Act of 2025, the Secretary shall— 13
421	421	‘‘(A) publish an advance notice of proposed 14
422	422	rulemaking; and 15
423	423	‘‘(B) consult with appropriate stake-16
424	424	holders. 17
425	425	‘‘(2) I
426	426	NTERIM FINAL RULE .—Not later than 1 18
427	427	year after the date of enactment of the Rural Hous-19
428	428	ing Service Reform Act of 2025, the Secretary shall 20
429	429	publish an interim final rule to carry out this sec-21
430	430	tion.’’. 22
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434	434	SEC. 202. RENTAL ASSISTANCE CONTRACT AUTHORITY. 1
435	435	Section 521(d) of the Housing Act of 1949 (42 2
436	436	U.S.C. 1490a(d)), as amended by section 101(b), is 3
437	437	amended— 4
438	438	(1) in paragraph (1)— 5
439	439	(A) by redesignating subparagraphs (B) 6
440	440	and (C) as subparagraphs (C) and (D), respec-7
441	441	tively; 8
442	442	(B) by inserting after subparagraph (A) 9
443	443	the following: 10
444	444	‘‘(B) upon request of an owner of a project fi-11
445	445	nanced under section 514 or 515, the Secretary is 12
446	446	authorized to enter into renewal of such agreements 13
447	447	for a period of 20 years or the term of the loan, 14
448	448	whichever is shorter, subject to amounts made avail-15
449	449	able in appropriations Acts;’’; 16
450	450	(C) in subparagraph (C), as so redesig-17
451	451	nated, by striking ‘‘subparagraph (A)’’ and in-18
452	452	serting ‘‘subparagraphs (A) and (B)’’; and 19
453	453	(D) in subparagraph (D), as so redesig-20
454	454	nated, by striking ‘‘subparagraphs (A) and 21
455	455	(B)’’ and inserting ‘‘subparagraphs (A), (B), 22
456	456	and (C)’’; 23
457	457	(2) in paragraph (2), by striking ‘‘shall’’ and 24
458	458	inserting ‘‘may’’; and 25
459	459	(3) by adding at the end the following: 26
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462	462	•S 1260 IS
463	463	‘‘(4) In the case of any rental assistance contract au-1
464	464	thority that becomes available because of the termination 2
465	465	of assistance on behalf of an assisted family— 3
466	466	‘‘(A) at the option of the owner of the rental 4
467	467	project, the Secretary shall provide the owner a pe-5
468	468	riod of not more than 6 months before unused as-6
469	469	sistance is made available pursuant to subparagraph 7
470	470	(B) during which the owner may use such assistance 8
471	471	authority to provide assistance on behalf of an eligi-9
472	472	ble unassisted family that— 10
473	473	‘‘(i) is residing in the same rental project 11
474	474	in which the assisted family resided before the 12
475	475	termination; or 13
476	476	‘‘(ii) newly occupies a dwelling unit in the 14
477	477	rental project during that 6-month period; and 15
478	478	‘‘(B) except for assistance used as provided in 16
479	479	subparagraph (A), the Secretary shall use such re-17
480	480	maining authority to provide assistance on behalf of 18
481	481	eligible families residing in other rental projects 19
482	482	originally financed under section 514, 515, or 516.’’. 20
483	483	TITLE III—NATIVE CDFI 21
484	484	RELENDING 22
485	485	SEC. 301. NATIVE CDFI RELENDING PROGRAM. 23
486	486	Section 502 of the Housing Act of 1949 (42 U.S.C. 24
487	487	1472) is amended by adding at the end the following: 25
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490	490	•S 1260 IS
491	491	‘‘(j) SETASIDE FORNATIVECOMMUNITYDEVELOP-1
492	492	MENTFINANCIALINSTITUTIONS.— 2
493	493	‘‘(1) D
494	494	EFINITIONS.—In this subsection— 3
495	495	‘‘(A) the term ‘Alaska Native’ has the 4
496	496	meaning given the term ‘Native’ in section 3(b) 5
497	497	of the Alaska Native Claims Settlement Act (43 6
498	498	U.S.C. 1602(b)); 7
499	499	‘‘(B) the term ‘appropriate congressional 8
500	500	committees’ means— 9
501	501	‘‘(i) the Committee on Agriculture of 10
502	502	the Senate; 11
503	503	‘‘(ii) the Committee on Indian Affairs 12
504	504	of the Senate; 13
505	505	‘‘(iii) the Committee on Banking, 14
506	506	Housing, and Urban Affairs of the Senate; 15
507	507	‘‘(iv) the Committee on Agriculture of 16
508	508	the House of Representatives; 17
509	509	‘‘(v) the Committee on Natural Re-18
510	510	sources of the House of Representatives; 19
511	511	and 20
512	512	‘‘(vi) the Committee on Financial 21
513	513	Services of the House of Representatives; 22
514	514	‘‘(C) the term ‘community development fi-23
515	515	nancial institution’ has the meaning given the 24
516	516	term in section 103 of the Community Develop-25
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519	519	•S 1260 IS
520	520	ment Banking and Financial Institutions Act of 1
521	521	1994 (12 U.S.C. 4702); 2
522	522	‘‘(D) the term ‘Indian Tribe’ has the 3
523	523	meaning given the term ‘Indian tribe’ in section 4
524	524	4 of the Native American Housing Assistance 5
525	525	and Self-Determination Act of 1996 (25 U.S.C. 6
526	526	4103); 7
527	527	‘‘(E) the term ‘Native community develop-8
528	528	ment financial institution’ means an entity— 9
529	529	‘‘(i) that has been certified as a com-10
530	530	munity development financial institution by 11
531	531	the Secretary of the Treasury; 12
532	532	‘‘(ii) that is not less than 51 percent 13
533	533	owned or controlled by members of Indian 14
534	534	Tribes, Alaska Native communities, or Na-15
535	535	tive Hawaiian communities; and 16
536	536	‘‘(iii) for which not less than 51 per-17
537	537	cent of the activities of the entity serve In-18
538	538	dian Tribes, Alaska Native communities, 19
539	539	or Native Hawaiian communities; 20
540	540	‘‘(F) the term ‘Native Hawaiian’ has the 21
541	541	meaning given the term in section 801 of the 22
542	542	Native American Housing Assistance and Self- 23
543	543	Determination Act of 1996 (25 U.S.C. 4221); 24
544	544	and 25
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547	547	•S 1260 IS
548	548	‘‘(G) the term ‘priority Tribal land’ 1
549	549	means— 2
550	550	‘‘(i) any land located within the 3
551	551	boundaries of— 4
552	552	‘‘(I) an Indian reservation, pueb-5
553	553	lo, or rancheria; or 6
554	554	‘‘(II) a former reservation within 7
555	555	Oklahoma; 8
556	556	‘‘(ii) any land not located within the 9
557	557	boundaries of an Indian reservation, pueb-10
558	558	lo, or rancheria, the title to which is held— 11
559	559	‘‘(I) in trust by the United States 12
560	560	for the benefit of an Indian Tribe or 13
561	561	an individual Indian; 14
562	562	‘‘(II) by an Indian Tribe or an 15
563	563	individual Indian, subject to restric-16
564	564	tion against alienation under laws of 17
565	565	the United States; or 18
566	566	‘‘(III) by a dependent Indian 19
567	567	community; 20
568	568	‘‘(iii) any land located within a region 21
569	569	established pursuant to section 7(a) of the 22
570	570	Alaska Native Claims Settlement Act (43 23
571	571	U.S.C. 1606(a)); 24
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574	574	•S 1260 IS
575	575	‘‘(iv) Hawaiian Home Lands, as de-1
576	576	fined in section 801 of the Native Amer-2
577	577	ican Housing Assistance and Self-Deter-3
578	578	mination Act of 1996 (25 U.S.C. 4221); or 4
579	579	‘‘(v) those areas or communities des-5
580	580	ignated by the Assistant Secretary of In-6
581	581	dian Affairs of the Department of the Inte-7
582	582	rior that are near, adjacent, or contiguous 8
583	583	to reservations where financial assistance 9
584	584	and social service programs are provided to 10
585	585	Indians because of their status as Indians. 11
586	586	‘‘(2) P
587	587	URPOSE.—The purpose of this subsection 12
588	588	is to— 13
589	589	‘‘(A) increase homeownership opportunities 14
590	590	for Indian Tribes, Alaska Native Communities, 15
591	591	and Native Hawaiian communities in rural 16
592	592	areas; and 17
593	593	‘‘(B) provide capital to Native community 18
594	594	development financial institutions to increase 19
595	595	the number of mortgage transactions carried 20
596	596	out by those institutions. 21
597	597	‘‘(3) S
598	598	ET ASIDE FOR NATIVE CDFIS .—Of 22
599	599	amounts appropriated to make direct loans under 23
600	600	this section for each fiscal year, the Secretary may 24
601	601	use not more than $50,000,000 to make direct loans 25
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604	604	•S 1260 IS
605	605	to Native community development financial institu-1
606	606	tions in accordance with this subsection. 2
607	607	‘‘(4) A
608	608	PPLICATION REQUIREMENTS .—A Native 3
609	609	community development financial institution desiring 4
610	610	a loan under this subsection shall demonstrate that 5
611	611	the institution— 6
612	612	‘‘(A) can provide the non-Federal cost 7
613	613	share required under paragraph (6); and 8
614	614	‘‘(B) is able to originate and service loans 9
615	615	for single family homes. 10
616	616	‘‘(5) L
617	617	ENDING REQUIREMENTS .—A Native com-11
618	618	munity development financial institution that re-12
619	619	ceives a loan pursuant to this subsection shall— 13
620	620	‘‘(A) use those amounts to make loans to 14
621	621	borrowers— 15
622	622	‘‘(i) who otherwise meet the require-16
623	623	ments for a loan under this section; and 17
624	624	‘‘(ii) who— 18
625	625	‘‘(I) are members of an Indian 19
626	626	Tribe, an Alaska Native community, 20
627	627	or a Native Hawaiian community; or 21
628	628	‘‘(II) maintain a household in 22
629	629	which not less than 1 member is a 23
630	630	member of an Indian Tribe, an Alaska 24
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633	633	•S 1260 IS
634	634	Native community, or a Native Ha-1
635	635	waiian community; and 2
636	636	‘‘(B) in making loans under subparagraph 3
637	637	(A), give priority to borrowers described in that 4
638	638	subparagraph who are residing on priority Trib-5
639	639	al land. 6
640	640	‘‘(6) N
641	641	ON-FEDERAL COST SHARE .— 7
642	642	‘‘(A) I
643	643	N GENERAL.—A Native community 8
644	644	development financial institution that receives a 9
645	645	loan under this section shall be required to 10
646	646	match not less than 20 percent of the amount 11
647	647	received. 12
648	648	‘‘(B) W
649	649	AIVER.—In the case of a loan for 13
650	650	which amounts are used to make loans to bor-14
651	651	rowers described in paragraph (5)(B), the Sec-15
652	652	retary shall waive the non-Federal cost share 16
653	653	requirement described in subparagraph (A) with 17
654	654	respect to those loan amounts. 18
655	655	‘‘(7) R
656	656	EPORTING.— 19
657	657	‘‘(A) A
658	658	NNUAL REPORT BY NATIVE 20
659	659	CDFIS.—Each Native community development 21
660	660	financial institution that receives a loan pursu-22
661	661	ant to this subsection shall submit an annual 23
662	662	report to the Secretary on the lending activities 24
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665	665	•S 1260 IS
666	666	of the institution using the loan amounts, which 1
667	667	shall include— 2
668	668	‘‘(i) a description of the outreach ef-3
669	669	forts of the institution in local communities 4
670	670	to identify eligible borrowers; 5
671	671	‘‘(ii) a description of how the institu-6
672	672	tion leveraged additional capital to reach 7
673	673	prospective borrowers; 8
674	674	‘‘(iii) the number of loan applications 9
675	675	received, approved, and deployed; 10
676	676	‘‘(iv) the average loan amount; 11
677	677	‘‘(v) the number of finalized loans 12
678	678	that were made on Tribal trust lands and 13
679	679	not on Tribal trust lands; and 14
680	680	‘‘(vi) the number of finalized loans 15
681	681	that were made on priority Tribal land and 16
682	682	not priority Tribal land. 17
683	683	‘‘(B) A
684	684	NNUAL REPORT TO CONGRESS .— 18
685	685	Not later than 1 year after the date of enact-19
686	686	ment of this subsection, and every year there-20
687	687	after, the Secretary shall submit to the appro-21
688	688	priate congressional communities a report that 22
689	689	includes— 23
690	690	‘‘(i) a list of loans made to Native 24
691	691	community development financial institu-25
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694	694	•S 1260 IS
695	695	tions pursuant to this subsection, including 1
696	696	the name of the institution and the loan 2
697	697	amount; 3
698	698	‘‘(ii) the percentage of loans made 4
699	699	under this section to members of Indian 5
700	700	Tribes, Alaska Native communities, and 6
701	701	Native Hawaiian communities, respectively, 7
702	702	including a breakdown of loans made to 8
703	703	households residing on and not on Tribal 9
704	704	trust lands; and 10
705	705	‘‘(iii) the average loan amount made 11
706	706	by Native community development finan-12
707	707	cial institutions pursuant to this sub-13
708	708	section. 14
709	709	‘‘(C) E
710	710	VALUATION OF PROGRAM .—Not 15
711	711	later than 3 years after the date of enactment 16
712	712	of this subsection, the Secretary and the Sec-17
713	713	retary of the Treasury shall conduct an evalua-18
714	714	tion of and submit to the appropriate congres-19
715	715	sional committees a report on the program 20
716	716	under this subsection, which shall— 21
717	717	‘‘(i) evaluate the effectiveness of the 22
718	718	program, including an evaluation of the de-23
719	719	mand for loans under the program; and 24
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722	722	•S 1260 IS
723	723	‘‘(ii) include recommendations relating 1
724	724	to the program, including whether— 2
725	725	‘‘(I) the program should be ex-3
726	726	panded to such that all community de-4
727	727	velopment financial institutions may 5
728	728	make loans under the program to the 6
729	729	borrowers described in paragraph (5); 7
730	730	and 8
731	731	‘‘(II) the set aside amount para-9
732	732	graph (3) should be modified in order 10
733	733	to match demand under the program. 11
734	734	‘‘(8) G
735	735	RANTS FOR OPERATIONAL SUPPORT .— 12
736	736	‘‘(A) I
737	737	N GENERAL.—The Secretary shall 13
738	738	make grants to Native community development 14
739	739	financial institutions that receive a loan under 15
740	740	this section to provide operational support and 16
741	741	other related services to those institutions, sub-17
742	742	ject to— 18
743	743	‘‘(i) the satisfactory performance, as 19
744	744	determined by the Secretary, of a Native 20
745	745	community development financial institu-21
746	746	tion in carrying out this section; and 22
747	747	‘‘(ii) the availability of funding. 23
748	748	‘‘(B) A
749	749	MOUNT.—A Native community de-24
750	750	velopment financial institution that receives a 25
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753	753	•S 1260 IS
754	754	loan under this section shall be eligible to re-1
755	755	ceive a grant described in subparagraph (A) in 2
756	756	an amount equal to 20 percent of the direct 3
757	757	loan amount received by the Native community 4
758	758	development financial institution under the pro-5
759	759	gram under this section as of the date on which 6
760	760	the direct loan is awarded. 7
761	761	‘‘(9) O
762	762	UTREACH AND TECHNICAL ASSIST -8
763	763	ANCE.—There is authorized to be appropriated to 9
764	764	the Secretary $1,000,000 for each of fiscal years 10
765	765	2025, 2026, and 2027— 11
766	766	‘‘(A) to provide technical assistance to Na-12
767	767	tive community development financial institu-13
768	768	tions— 14
769	769	‘‘(i) relating to homeownership and 15
770	770	other housing-related assistance provided 16
771	771	by the Secretary; and 17
772	772	‘‘(ii) to assist those institutions to 18
773	773	perform outreach to eligible homebuyers 19
774	774	relating to the loan program under this 20
775	775	section; or 21
776	776	‘‘(B) to provide funding to a national orga-22
777	777	nization representing Native American housing 23
778	778	interests to perform outreach and provide tech-24
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781	781	•S 1260 IS
782	782	nical assistance as described in clauses (i) and 1
783	783	(ii), respectively, of subparagraph (A). 2
784	784	‘‘(10) A
785	785	DMINISTRATIVE COSTS.—In addition to 3
786	786	other available funds, the Secretary may use not 4
787	787	more than 3 percent of the amounts made available 5
788	788	to carry out this subsection for administration of the 6
789	789	programs established under this subsection.’’. 7
790	790	TITLE IV—SECTION 504 LOANS 8
791	791	AND GRANTS 9
792	792	SEC. 401. MODIFICATIONS TO LOANS AND GRANTS FOR 10
793	793	MINOR IMPROVEMENTS TO FARM HOUSING 11
794	794	AND BUILDINGS; INCOME ELIGIBILITY. 12
795	795	Section 504(a) of the Housing Act of 1949 (42 13
796	796	U.S.C. 1474(a)) is amended— 14
797	797	(1) in the first sentence, by inserting ‘‘and may 15
798	798	make a loan to an eligible low-income applicant’’ 16
799	799	after ‘‘applicant’’; 17
800	800	(2) by inserting ‘‘Not less than 60 percent of 18
801	801	loan funds made available under this section shall be 19
802	802	reserved and made available for very low-income ap-20
803	803	plicants.’’ after the first sentence; and 21
804	804	(3) by striking ‘‘$7,500’’ and inserting 22
805	805	‘‘$15,000’’. 23
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808	808	•S 1260 IS
809	809	TITLE V—RURAL COMMUNITY 1
810	810	DEVELOPMENT INITIATIVE 2
811	811	GRANTS 3
812	812	SEC. 501. RURAL COMMUNITY DEVELOPMENT INITIATIVE. 4
813	813	Subtitle E of the Consolidated Farm and Rural De-5
814	814	velopment Act (7 U.S.C. 2009 et seq.) is amended by add-6
815	815	ing at the end the following: 7
816	816	‘‘SEC. 381O. RURAL COMMUNITY DEVELOPMENT INITIA-8
817	817	TIVE. 9
818	818	‘‘(a) D
819	819	EFINITIONS.—In this section: 10
820	820	‘‘(1) E
821	821	LIGIBLE ENTITY.—The term ‘eligible en-11
822	822	tity’ means— 12
823	823	‘‘(A) a private, nonprofit community-based 13
824	824	housing or community development organiza-14
825	825	tion; 15
826	826	‘‘(B) a rural community; or 16
827	827	‘‘(C) a federally recognized Indian Tribe. 17
828	828	‘‘(2) E
829	829	LIGIBLE INTERMEDIARY .—The term ‘eli-18
830	830	gible intermediary’ means a qualified— 19
831	831	‘‘(A) private, nonprofit organization; or 20
832	832	‘‘(B) public organization. 21
833	833	‘‘(b) E
834	834	STABLISHMENT.—The Secretary shall estab-22
835	835	lish a Rural Community Development Initiative, under 23
836	836	which the Secretary shall provide grants to eligible inter-24
837	837	mediaries to carry out programs to provide financial and 25
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840	840	•S 1260 IS
841	841	technical assistance to eligible entities to develop the ca-1
842	842	pacity and ability of eligible entities to carry out projects 2
843	843	to improve housing, community facilities, and community 3
844	844	and economic development projects in rural areas. 4
845	845	‘‘(c) A
846	846	MOUNT OFGRANTS.—The amount of a grant 5
847	847	provided to an eligible intermediary under this section 6
848	848	shall be not more than $250,000. 7
849	849	‘‘(d) M
850	850	ATCHINGFUNDS.— 8
851	851	‘‘(1) I
852	852	N GENERAL.—An eligible intermediary re-9
853	853	ceiving a grant under this section shall provide 10
854	854	matching funds from other sources, including Fed-11
855	855	eral funds for related activities, in an amount not 12
856	856	less than the amount of the grant. 13
857	857	‘‘(2) W
858	858	AIVER.—The Secretary may waive para-14
859	859	graph (1) with respect to a project that would be 15
860	860	carried out in a persistently poor rural region, as de-16
861	861	termined by the Secretary.’’. 17
862	862	TITLE VI—REPORTS 18
863	863	SEC. 601. ANNUAL REPORT ON RURAL HOUSING PRO-19
864	864	GRAMS. 20
865	865	Title V of the Housing Act of 1949 (42 U.S.C. 1471 21
866	866	et seq.), as amended by this Act, is amended by adding 22
867	867	at the end the following: 23
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870	870	•S 1260 IS
871	871	‘‘SEC. 546. ANNUAL REPORT. 1
872	872	‘‘(a) I
873	873	NGENERAL.—The Secretary shall submit to 2
874	874	the appropriate committees of Congress and publish on 3
875	875	the website of the Department of Agriculture an annual 4
876	876	report on rural housing programs carried out under this 5
877	877	title, which shall include significant details on the health 6
878	878	of Rural Housing Service programs, including— 7
879	879	‘‘(1) raw data sortable by programs and by re-8
880	880	gion regarding loan performance; 9
881	881	‘‘(2) the housing stock of those programs, in-10
882	882	cluding information on why properties end participa-11
883	883	tion in those programs, such as for maturation, pre-12
884	884	payment, foreclosure, or other servicing issues; and 13
885	885	‘‘(3) risk ratings for properties assisted under 14
886	886	those programs. 15
887	887	‘‘(b) P
888	888	ROTECTION OFINFORMATION.—The data in-16
889	889	cluded in each report required under subsection (a) may 17
890	890	be aggregated or anonymized to protect participant finan-18
891	891	cial or personal information.’’. 19
892	892	SEC. 602. GAO REPORT ON RURAL HOUSING SERVICE 20
893	893	TECHNOLOGY. 21
894	894	Not later than 1 year after the date of enactment 22
895	895	of this Act, the Comptroller General of the United States 23
896	896	shall submit to Congress a report that includes— 24
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899	899	•S 1260 IS
900	900	(1) an analysis of how the outdated technology 1
901	901	used by the Rural Housing Service impacts partici-2
902	902	pants in the programs of the Rural Housing Service; 3
903	903	(2) an estimate of the amount of funding that 4
904	904	is needed to modernize the technology used by the 5
905	905	Rural Housing Service; and 6
906	906	(3) an estimate of the number and type of new 7
907	907	employees the Rural Housing Service needs to mod-8
908	908	ernize the technology used by the Rural Housing 9
909	909	Service. 10
910	910	TITLE VII—RURAL HOUSING 11
911	911	VOUCHER PROGRAM 12
912	912	SEC. 701. ADJUSTMENT TO RURAL DEVELOPMENT VOUCH-13
913	913	ER AMOUNT. 14
914	914	(a) I
915	915	NGENERAL.—Not later than 2 years after the 15
916	916	date of enactment of this Act, the Secretary of Agriculture 16
917	917	shall issue regulations to establish a process for adjusting 17
918	918	the voucher amount provided under section 542 of the 18
919	919	Housing Act of 1949 (42 U.S.C. 1490r) after the issuance 19
920	920	of the voucher following an interim or annual review of 20
921	921	the amount of the voucher. 21
922	922	(b) I
923	923	NTERIMREVIEW.—The interim review described 22
924	924	in subsection (a) shall, at the request of a tenant, allow 23
925	925	for a recalculation of the voucher amount when the tenant 24
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928	928	•S 1260 IS
929	929	experiences a reduction in income, change in family com-1
930	930	position, or change in rental rate. 2
931	931	(c) A
932	932	NNUALREVIEW.— 3
933	933	(1) I
934	934	N GENERAL.—The annual review described 4
935	935	in subsection (a) shall require tenants to annually 5
936	936	recertify the family composition of the household 6
937	937	and that the family income of the household does 7
938	938	not exceed 80 percent of the area median income at 8
939	939	a time determined by the Secretary of Agriculture. 9
940	940	(2) C
941	941	ONSIDERATIONS.—If a tenant does not re-10
942	942	certify the family composition and family income of 11
943	943	the household within the time frame required under 12
944	944	paragraph (1), the Secretary of Agriculture— 13
945	945	(A) shall consider whether extenuating cir-14
946	946	cumstances caused the delay in recertification; 15
947	947	and 16
948	948	(B) may alter associated consequences for 17
949	949	the failure to recertify based on those cir-18
950	950	cumstances. 19
951	951	(3) E
952	952	FFECTIVE DATE.—Following the annual 20
953	953	review of a voucher under subsection (a), the up-21
954	954	dated voucher amount shall be effective on the 1st 22
955	955	day of the month following the expiration of the 23
956	956	voucher. 24
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959	959	•S 1260 IS
960	960	(d) DEADLINE.—The process established under sub-1
961	961	section (a) shall require the Secretary of Agriculture to 2
962	962	review and update the voucher amount described in sub-3
963	963	section (a) for a tenant not later than 60 days before the 4
964	964	end of the voucher term. 5
965	965	SEC. 702. ELIGIBILITY FOR RURAL HOUSING VOUCHERS. 6
966	966	Section 542 of the Housing Act of 1949 (42 U.S.C. 7
967	967	1490r) is amended by adding at the end the following: 8
968	968	‘‘(c) E
969	969	LIGIBILITY OFHOUSEHOLDS IN SECTIONS 9
970	970	514, 515,
971	971	AND516 PROJECTS.—The Secretary may pro-10
972	972	vide rural housing vouchers under this section for any low- 11
973	973	income household (including those not receiving rental as-12
974	974	sistance) residing for a term longer than the remaining 13
975	975	term of their lease that is in effect on the date of prepay-14
976	976	ment, foreclosure, or mortgage maturity, in a property fi-15
977	977	nanced with a loan under section 514 or 515 or a grant 16
978	978	under section 516 that has— 17
979	979	‘‘(1) been prepaid with or without restrictions 18
980	980	imposed by the Secretary pursuant to section 19
981	981	502(c)(5)(G)(ii)(I); 20
982	982	‘‘(2) been foreclosed; or 21
983	983	‘‘(3) matured after September 30, 2005.’’. 22
984	984	SEC. 703. AMOUNT OF VOUCHER ASSISTANCE. 23
985	985	Notwithstanding any other provision of law, in the 24
986	986	case of any rural housing voucher provided pursuant to 25
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989	989	•S 1260 IS
990	990	section 542 of the Housing Act of 1949 (42 U.S.C. 1
991	991	1490r), the amount of the monthly assistance payment for 2
992	992	the household on whose behalf the assistance is provided 3
993	993	shall be determined as provided in subsection (a) of such 4
994	994	section 542, including providing for interim and annual 5
995	995	review of the voucher amount in the event of a change 6
996	996	in household composition or income or rental rate. 7
997	997	TITLE VIII—TRANSFERS TO 8
998	998	NONPROFIT ORGANIZATIONS 9
999	999	SEC. 801. TRANSFER OF MULTIFAMILY RURAL HOUSING 10
1000	1000	PROJECTS. 11
1001	1001	Section 515 of the Housing Act of 1949 (42 U.S.C. 12
1002	1002	1485) is amended— 13
1003	1003	(1) in subsection (h), by adding at the end the 14
1004	1004	following: 15
1005	1005	‘‘(3) T
1006	1006	RANSFER TO NONPROFIT ORGANIZA -16
1007	1007	TIONS.—A nonprofit or public body purchaser, in-17
1008	1008	cluding a limited partnership with a general partner 18
1009	1009	with the principal purpose of providing affordable 19
1010	1010	housing, may purchase a property for which a loan 20
1011	1011	is made or insured under this section that has re-21
1012	1012	ceived a market value appraisal, without addressing 22
1013	1013	rehabilitation needs at the time of purchase, if the 23
1014	1014	purchaser— 24
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1018	1018	‘‘(A) makes a commitment to address re-1
1019	1019	habilitation needs during ownership and long- 2
1020	1020	term use restrictions on the property; and 3
1021	1021	‘‘(B) at the time of purchase, accepts long- 4
1022	1022	term use restrictions on the property.’’; and 5
1023	1023	(2) in subsection (w)(1), in the first sentence in 6
1024	1024	the matter preceding subparagraph (A), by striking 7
1025	1025	‘‘9 percent’’ and inserting ‘‘50 percent’’. 8
1026	1026	TITLE IX—SECTION 502 LOANS 9
1027	1027	AND GUARANTEES 10
1028	1028	SEC. 901. EXTENSION OF LOAN TERM. 11
1029	1029	(a) I
1030	1030	NGENERAL.—Section 502(a)(2) of the Housing 12
1031	1031	Act of 1949 (42 U.S.C. 1472(a)(2)) is amended— 13
1032	1032	(1) by inserting ‘‘(A)’’ before ‘‘The Secretary’’; 14
1033	1033	(2) in subparagraph (A), as so designated, by 15
1034	1034	striking ‘‘paragraph’’ and inserting ‘‘subparagraph’’; 16
1035	1035	and 17
1036	1036	(3) by adding at the end the following: 18
1037	1037	‘‘(B) The Secretary may refinance or modify 19
1038	1038	the period of any loan, including any refinanced 20
1039	1039	loan, made under this section in accordance with 21
1040	1040	terms and conditions as the Secretary shall pre-22
1041	1041	scribe, but in no event shall the total term of the 23
1042	1042	loan from the date of the refinance or modification 24
1043	1043	exceed 40 years.’’. 25
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1047	1047	(b) APPLICATION.—The amendment made under 1
1048	1048	subsection (a) shall apply with respect to loans made 2
1049	1049	under section 502 of the Housing Act of 1949 (42 U.S.C. 3
1050	1050	1472) before, on, or after the date of enactment of this 4
1051	1051	Act. 5
1052	1052	SEC. 902. RELEASE OF LIABILITY FOR SECTION 502 GUAR-6
1053	1053	ANTEED BORROWER UPON ASSUMPTION OF 7
1054	1054	ORIGINAL LOAN BY NEW BORROWER. 8
1055	1055	Section 502(h)(10) of the Housing Act of 1949 (42 9
1056	1056	U.S.C. 1472(h)(10)) is amended to read as follows: 10
1057	1057	‘‘(10) T
1058	1058	RANSFER AND ASSUMPTION .—Upon the 11
1059	1059	transfer of property for which a guaranteed loan 12
1060	1060	under this subsection was made and the assumption 13
1061	1061	of the guaranteed loan by an approved eligible bor-14
1062	1062	rower, the original borrower of a guaranteed loan 15
1063	1063	under this subsection shall be relieved of liability 16
1064	1064	with respect to the loan.’’. 17
1065	1065	SEC. 903. DEPARTMENT OF AGRICULTURE LOAN RESTRIC-18
1066	1066	TIONS. 19
1067	1067	(a) D
1068	1068	EFINITIONS.—In this section, the terms ‘‘State’’ 20
1069	1069	and ‘‘Tribal organization’’ have the meanings given those 21
1070	1070	terms in section 658P of the Child Care and Development 22
1071	1071	Block Grant Act of 1990 (42 U.S.C. 9858n). 23
1072	1072	(b) R
1073	1073	EVISION.—The Secretary of Agriculture shall 24
1074	1074	revise section 3555.102(c) of title 7, Code of Federal Reg-25
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1078	1078	ulations, to exclude from the restriction under that sec-1
1079	1079	tion— 2
1080	1080	(1) a home-based business that is a licensed, 3
1081	1081	registered, or regulated child care provider under 4
1082	1082	State law or by a Tribal organization; and 5
1083	1083	(2) an applicant that has applied to become a 6
1084	1084	licensed, registered or regulated child care provider 7
1085	1085	under State law or by a Tribal organization. 8
1086	1086	TITLE X—ACCESSORY DWELLING 9
1087	1087	UNITS 10
1088	1088	SEC. 1001. LOAN GUARANTEES. 11
1089	1089	Section 502(h)(4) of the Housing Act of 1949 (42 12
1090	1090	U.S.C. 1472(h)(4)) is amended— 13
1091	1091	(1) by redesignating subparagraphs (A), (B), 14
1092	1092	and (C) as clauses (i), (ii), and (iii), respectively; 15
1093	1093	(2) by striking ‘‘Loans may be guaranteed’’ and 16
1094	1094	inserting the following: 17
1095	1095	‘‘(A) D
1096	1096	EFINITION.—In this paragraph, the 18
1097	1097	term ‘accessory dwelling unit’ means a single, 19
1098	1098	habitable living unit— 20
1099	1099	‘‘(i) with means of separate ingress 21
1100	1100	and egress; 22
1101	1101	‘‘(ii) that is usually subordinate in 23
1102	1102	size; 24
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1105	1105	•S 1260 IS
1106	1106	‘‘(iii) that can be added to, created 1
1107	1107	within, or detached from a primary 1-unit, 2
1108	1108	single-family dwelling; and 3
1109	1109	‘‘(iv) in combination with a primary 4
1110	1110	1-unit, single family dwelling, constitutes a 5
1111	1111	single interest in real estate. 6
1112	1112	‘‘(B) S
1113	1113	INGLE FAMILY REQUIREMENT .— 7
1114	1114	Loans may be guaranteed’’; and 8
1115	1115	(3) by adding at the end the following: 9
1116	1116	‘‘(C) R
1117	1117	ULE OF CONSTRUCTION .—Nothing 10
1118	1118	in this paragraph shall be construed to prohibit 11
1119	1119	the leasing of an accessory dwelling unit or the 12
1120	1120	use of rental income derived from such a lease 13
1121	1121	to qualify for a loan guaranteed under this sub-14
1122	1122	section— 15
1123	1123	‘‘(i) after the date of enactment of the 16
1124	1124	Rural Housing Service Reform Act of 17
1125	1125	2025; and 18
1126	1126	‘‘(ii) if the property that is the subject 19
1127	1127	of the loan was constructed before the date 20
1128	1128	of enactment of the Rural Housing Service 21
1129	1129	Reform Act of 2025.’’. 22
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1133	1133	TITLE XI—TIME FRAME FOR 1
1134	1134	COMPLETING APPLICATION 2
1135	1135	REVIEW 3
1136	1136	SEC. 1101. APPLICATION REVIEW. 4
1137	1137	(a) S
1138	1138	ENSE OFCONGRESS.—It is the sense of Con-5
1139	1139	gress, not later than 90 days after the date on which the 6
1140	1140	Secretary of Agriculture receives an application for a loan, 7
1141	1141	grant or combined loan and grant under section 502 or 8
1142	1142	504 of the Housing Act of 1949 (42 U.S.C. 1472, 1474), 9
1143	1143	the Secretary of Agriculture should— 10
1144	1144	(1) review the application; 11
1145	1145	(2) complete the underwriting; 12
1146	1146	(3) make a determination of eligibility with re-13
1147	1147	spect to the application; and 14
1148	1148	(4) notify the applicant of determination. 15
1149	1149	(b) R
1150	1150	EPORT.— 16
1151	1151	(1) I
1152	1152	N GENERAL.—Not later than 90 days after 17
1153	1153	the date of enactment of this Act, and annually 18
1154	1154	thereafter until the date described in paragraph (2), 19
1155	1155	the Secretary of Agriculture shall submit to the 20
1156	1156	Committee on Banking, Housing, and Urban Affairs 21
1157	1157	of the Senate and the Committee on Financial Serv-22
1158	1158	ices of the House of Representatives a report— 23
1159	1159	(A) detailing the timeliness of eligibility de-24
1160	1160	terminations and final determinations with re-25
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1164	1164	spect to applications under section 502 and 504 1
1165	1165	of the Housing Act of 1949 (42 U.S.C. 1472, 2
1166	1166	1474), including justifications for any eligibility 3
1167	1167	determinations taking longer than 90 days; 4
1168	1168	(B) that includes recommendations to 5
1169	1169	shorten the timeline for notifications of eligi-6
1170	1170	bility determinations described in paragraph (1) 7
1171	1171	to not more than 90 days. 8
1172	1172	(2) D
1173	1173	ATE DESCRIBED.—The date described in 9
1174	1174	this paragraph is the date on which, during the pre-10
1175	1175	ceding 5-year period, the Secretary of Agriculture 11
1176	1176	provides each eligibility determination described in 12
1177	1177	paragraph (1) during the 90-day period beginning 13
1178	1178	on the date on which each application is received. 14
1179	1179	Æ
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