II
119THCONGRESS
1
STSESSION S. 1260
To reform rural housing programs, and for other purposes.
IN THE SENATE OF THE UNITED STATES
APRIL2, 2025
Ms. S
MITH(for herself, Mr. ROUNDS, Mr. DAINES, Mr. FETTERMAN, Mr.
C
RAPO, Mr. WARNER, Mr. CRAMER, Mr. WARNOCK, Mrs. SHAHEEN, and
Mr. M
ORAN) introduced the following bill; which was read twice and re-
ferred to the Committee on Banking, Housing, and Urban Affairs
A BILL
To reform rural housing programs, and for other purposes.
Be it enacted by the Senate and House of Representa-1
tives of the United States of America in Congress assembled, 2
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 3
(a) S
HORTTITLE.—This Act may be cited as the 4
‘‘Rural Housing Service Reform Act of 2025’’. 5
(b) T
ABLE OFCONTENTS.—The table of contents of 6
this Act is as follows: 7
Sec. 1. Short title; table of contents.
TITLE I—STREAMLINING AND UPDATES
Sec. 101. Application of multifamily mortgage foreclosure procedures to multi-
family mortgages held by the Secretary of Agriculture and
preservation of the rental assistance contract upon foreclosure.
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Sec. 102. Study on rural housing loans for housing for low- and moderate-in-
come families.
Sec. 103. Authorization of appropriations for staffing and IT upgrades.
Sec. 104. Funding for technical improvements.
TITLE II—RURAL HOUSING PRESERVATION AND REVITALIZATION
Sec. 201. Permanent establishment of housing preservation and revitalization
program.
Sec. 202. Rental assistance contract authority.
TITLE III—NATIVE CDFI RELENDING
Sec. 301. Native CDFI relending program.
TITLE IV—SECTION 504 LOANS AND GRANTS
Sec. 401. Modifications to loans and grants for minor improvements to farm
housing and buildings; income eligibility.
TITLE V—RURAL COMMUNITY DEVELOPMENT INITIATIVE
GRANTS
Sec. 501. Rural community development initiative.
TITLE VI—REPORTS
Sec. 601. Annual report on rural housing programs.
Sec. 602. GAO report on Rural Housing Service technology.
TITLE VII—RURAL HOUSING VOUCHER PROGRAM
Sec. 701. Adjustment to rural development voucher amount.
Sec. 702. Eligibility for rural housing vouchers.
Sec. 703. Amount of voucher assistance.
TITLE VIII—TRANSFERS TO NONPROFIT ORGANIZATIONS
Sec. 801. Transfer of multifamily rural housing projects.
TITLE IX—SECTION 502 LOANS AND GUARANTEES
Sec. 901. Extension of loan term.
Sec. 902. Release of liability for section 502 guaranteed borrower upon assump-
tion of original loan by new borrower.
Sec. 903. Department of Agriculture loan restrictions.
TITLE X—ACCESSORY DWELLING UNITS
Sec. 1001. Loan guarantees.
TITLE XI—TIME FRAME FOR COMPLETING APPLICATION REVIEW
Sec. 1101. Application review.
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TITLE I—STREAMLINING AND 1
UPDATES 2
SEC. 101. APPLICATION OF MULTIFAMILY MORTGAGE 3
FORECLOSURE PROCEDURES TO MULTI-4
FAMILY MORTGAGES HELD BY THE SEC-5
RETARY OF AGRICULTURE AND PRESERVA-6
TION OF THE RENTAL ASSISTANCE CON-7
TRACT UPON FORECLOSURE. 8
(a) M
ULTIFAMILYMORTGAGEPROCEDURES.—Sec-9
tion 363(2) of the Multifamily Mortgage Foreclosure Act 10
of 1981 (12 U.S.C. 3702(2)) is amended— 11
(1) in subparagraph (D), by striking ‘‘and’’ at 12
the end; 13
(2) in subparagraph (E), by striking the period 14
at the end and inserting ‘‘; or’’; and 15
(3) by adding at the end the following: 16
‘‘(F) section 514, 515, or 538 of the Hous-17
ing Act of 1949 (42 U.S.C. 1484, 1485, 18
1490p).’’. 19
(b) P
RESERVATION OF CONTRACT.—Section 521(d) 20
of the Housing Act of 1949 (42 U.S.C. 1490a(d)) is 21
amended by adding at the end the following: 22
‘‘(3) Notwithstanding any other provision of law in 23
managing and disposing of any multifamily property that 24
is owned or has a mortgage held by the Secretary, and 25
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during the process of foreclosure on any property with a 1
contract for rental assistance under this section— 2
‘‘(A) the Secretary shall maintain any rental as-3
sistance payments that are attached to any dwelling 4
units in the property; and 5
‘‘(B) the rental assistance contract may be used 6
to provide further assistance to existing projects 7
under 514, 515, or 516.’’. 8
SEC. 102. STUDY ON RURAL HOUSING LOANS FOR HOUSING 9
FOR LOW- AND MODERATE-INCOME FAMI-10
LIES. 11
Not later than 6 months after the date of enactment 12
of this Act, the Secretary of Agriculture shall conduct a 13
study and submit to Congress a publicly available report 14
on the loan program under section 521 of the Housing 15
Act of 1949 (42 U.S.C. 1490a), including— 16
(1) the total amount provided by the Secretary 17
in subsidies under such section 521 to borrowers 18
with loans made pursuant to section 502 of such Act 19
(42 U.S.C. 1472); 20
(2) how much of the subsidies described in 21
paragraph (1) are being recaptured; and 22
(3) the amount of time and costs associated 23
with recapturing those subsidies. 24
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SEC. 103. AUTHORIZATION OF APPROPRIATIONS FOR 1
STAFFING AND IT UPGRADES. 2
There is authorized to be appropriated to the Sec-3
retary of Agriculture for each of fiscal years 2026 through 4
2030 such sums as may be necessary for increased staff-5
ing needs and information technology upgrades to support 6
all Rural Housing Service programs. 7
SEC. 104. FUNDING FOR TECHNICAL IMPROVEMENTS. 8
(a) A
UTHORIZATION OFAPPROPRIATIONS.—There is 9
authorized to be appropriated to the Secretary of Agri-10
culture such sums as may be necessary for fiscal year 11
2026 for improvements to the technology of the Rural 12
Housing Service of the Department of Agriculture used 13
to process and manage housing loans. 14
(b) A
VAILABILITY.—Amounts appropriated pursuant 15
to subsection (a) shall remain available until the date that 16
is 5 years after the date of the appropriation. 17
(c) T
IMELINE.—The Secretary of Agriculture shall 18
make the improvements described in subsection (a) during 19
the 5-year period beginning on the date on which amounts 20
are appropriated under subsection (a). 21
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TITLE II—RURAL HOUSING 1
PRESERVATION AND REVI-2
TALIZATION 3
SEC. 201. PERMANENT ESTABLISHMENT OF HOUSING PRES-4
ERVATION AND REVITALIZATION PROGRAM. 5
Title V of the Housing Act of 1949 (42 U.S.C. 1471 6
et seq.) is amended by adding at the end the following: 7
‘‘SEC. 545. HOUSING PRESERVATION AND REVITALIZATION 8
PROGRAM. 9
‘‘(a) E
STABLISHMENT.—The Secretary shall carry 10
out a program under this section for the preservation and 11
revitalization of multifamily rental housing projects fi-12
nanced under section 514, 515, or 516. 13
‘‘(b) N
OTICE OFMATURINGLOANS.— 14
‘‘(1) T
O OWNERS.—On an annual basis, the 15
Secretary shall provide written notice to each owner 16
of a property financed under section 514, 515, or 17
516 that will mature within the 4-year period begin-18
ning upon the provision of the notice, setting forth 19
the options and financial incentives that are avail-20
able to facilitate the extension of the loan term or 21
the option to decouple a rental assistance contract 22
pursuant to subsection (f). 23
‘‘(2) T
O TENANTS.— 24
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‘‘(A) IN GENERAL.—On an annual basis, 1
for each property financed under section 514, 2
515, or 516, not later than the date that is 2 3
years before the date that the loan will mature, 4
the Secretary shall provide written notice to 5
each household residing in the property that in-6
forms them of— 7
‘‘(i) the date of the loan maturity; 8
‘‘(ii) the possible actions that may 9
happen with respect to the property upon 10
that maturity; and 11
‘‘(iii) how to protect their right to re-12
side in federally assisted housing, or how 13
to secure housing voucher, after that ma-14
turity. 15
‘‘(B) L
ANGUAGE.—Notice under this para-16
graph shall be provided in plain English and 17
shall be translated to other languages in the 18
case of any property located in an area in which 19
a significant number of residents speak such 20
other languages. 21
‘‘(c) L
OANRESTRUCTURING.—Under the program 22
under this section, in any circumstance in which the Sec-23
retary proposes a restructuring to an owner or an owner 24
proposes a restructuring to the Secretary, the Secretary 25
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may restructure such existing housing loans, as the Sec-1
retary considers appropriate, for the purpose of ensuring 2
that those projects have sufficient resources to preserve 3
the projects to provide safe and affordable housing for low- 4
income residents and farm laborers, by— 5
‘‘(1) reducing or eliminating interest; 6
‘‘(2) deferring loan payments; 7
‘‘(3) subordinating, reducing, or reamortizing 8
loan debt; 9
‘‘(4) providing other financial assistance, in-10
cluding advances, payments, and incentives (includ-11
ing the ability of owners to obtain reasonable re-12
turns on investment) required by the Secretary; and 13
‘‘(5) permanently removing a portion of the 14
housing units from income restrictions when sus-15
tained vacancies have occurred. 16
‘‘(d) R
ENEWAL OFRENTALASSISTANCE.— 17
‘‘(1) I
N GENERAL.—When the Secretary pro-18
poses to restructure a loan or agrees to the proposal 19
of an owner to restructure a loan pursuant to sub-20
section (c), the Secretary shall offer to renew the 21
rental assistance contract under section 521(a)(2) 22
for a term that is the shorter of 20 years and the 23
term of the restructured loan, subject to annual ap-24
propriations, provided that the owner agrees to bring 25
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the property up to such standards that will ensure 1
maintenance of the property as decent, safe, and 2
sanitary housing for the full term of the rental as-3
sistance contract. 4
‘‘(2) A
DDITIONAL RENTAL ASSISTANCE .—With 5
respect to a project described in paragraph (1), if 6
rental assistance is not available for all households 7
in the project for which the loan is being restruc-8
tured pursuant to subsection (c), the Secretary may 9
extend such additional rental assistance to unas-10
sisted households at that project as is necessary to 11
make the project safe and affordable to low-income 12
households. 13
‘‘(e) R
ESTRICTIVEUSEAGREEMENTS.— 14
‘‘(1) R
EQUIREMENT.—As part of the preserva-15
tion and revitalization agreement for a project, the 16
Secretary shall obtain a restrictive use agreement 17
that is recorded and obligates the owner to operate 18
the project in accordance with this title. 19
‘‘(2) T
ERM.— 20
‘‘(A) N
O EXTENSION OF RENTAL ASSIST -21
ANCE CONTRACT.—Except when the Secretary 22
enters into a 20-year extension of the rental as-23
sistance contract for a project, the term of the 24
restrictive use agreement for the project shall 25
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be consistent with the term of the restructured 1
loan for the project. 2
‘‘(B) E
XTENSION OF RENTAL ASSISTANCE 3
CONTRACT.—If the Secretary enters into a 20- 4
year extension of the rental assistance contract 5
for a project, the term of the restrictive use 6
agreement for the project shall be for the longer 7
of— 8
‘‘(i) 20 years; or 9
‘‘(ii) the remaining term of the loan 10
for that project. 11
‘‘(C) T
ERMINATION.—The Secretary may 12
terminate the 20-year use restrictive use agree-13
ment for a project before the end of the term 14
of the agreement if the 20-year rental assist-15
ance contract for the project with the owner is 16
terminated at any time for reasons outside the 17
control of the owner. 18
‘‘(f) D
ECOUPLING OFRENTALASSISTANCE.— 19
‘‘(1) R
ENEWAL OF RENTAL ASSISTANCE CON -20
TRACT.—If the Secretary determines that a loan ma-21
turing during the 4-year period beginning upon the 22
provision of the notice required under subsection 23
(b)(1) for a project cannot reasonably be restruc-24
tured in accordance with subsection (c) because it is 25
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not financially feasible or the owner does not agree 1
with the proposed restructuring, and the project was 2
operating with rental assistance under section 521 3
and the recipient is a borrower under section 514 or 4
515, the Secretary may renew the rental assistance 5
contract, notwithstanding any requirement under 6
section 521 that the recipient be a current borrower 7
under section 514 or 515, for a term of 20 years, 8
subject to annual appropriations. 9
‘‘(2) A
DDITIONAL RENTAL ASSISTANCE .—With 10
respect to a project described in paragraph (1), if 11
rental assistance is not available for all households 12
in the project for which the loan is being restruc-13
tured pursuant to subsection (c), the Secretary may 14
extend such additional rental assistance to unas-15
sisted households at that project as is necessary to 16
make the project safe and affordable to low-income 17
households. 18
‘‘(3) R
ENTS.— 19
‘‘(A) I
N GENERAL.—Any agreement to ex-20
tend the term of the rental assistance contract 21
under section 521 for a project shall obligate 22
the owner to continue to maintain the project 23
as decent, safe, and sanitary housing and to op-24
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erate the development as affordable housing in 1
a manner that meets the goals of this title. 2
‘‘(B) R
ENT AMOUNTS.—Subject to sub-3
paragraph (C), in setting rents, the Secretary— 4
‘‘(i) shall determine the maximum ini-5
tial rent based on current fair market 6
rents established under section 8 of the 7
United States Housing Act of 1937 (42 8
U.S.C. 1437f); and 9
‘‘(ii) may annually adjust the rent de-10
termined under clause (i) by the operating 11
cost adjustment factor as provided under 12
section 524 of the Multifamily Assisted 13
Housing Reform and Affordability Act of 14
1997 (42 U.S.C. 1437f note). 15
‘‘(C) H
IGHER RENT.— 16
‘‘(i) I
N GENERAL.—Subparagraph (B) 17
shall not apply if the Secretary determines 18
that the budget-based needs of a project 19
require a higher rent than the rent de-20
scribed in subparagraph (B). 21
‘‘(ii) R
ENT.—If the Secretary makes a 22
positive determination under clause (i), the 23
Secretary may approve a budget-based rent 24
level for the project. 25
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‘‘(4) CONDITIONS FOR APPROVAL .— 1
‘‘(A) P
LAN.—Before the approval of a 2
rental assistance contract authorized under this 3
section, the Secretary shall require, through an 4
annual notice in the Federal Register, the 5
owner to submit to the Secretary a plan that 6
identifies financing sources and a timetable for 7
renovations and improvements determined to be 8
necessary by the Secretary to maintain and pre-9
serve the project. 10
‘‘(B) A
UTOMATIC APPROVAL .—If a plan 11
submitted under subparagraph (A) is not acted 12
upon by the Secretary within 30 days of the 13
submission, the rental assistance contract is 14
automatically approved for not more than a 1- 15
year period. 16
‘‘(g) M
ULTIFAMILYHOUSINGTRANSFERTECHNICAL 17
A
SSISTANCE.—Under the program under this section, the 18
Secretary may provide grants to qualified nonprofit orga-19
nizations and public housing agencies to provide technical 20
assistance, including financial and legal services, to bor-21
rowers under loans under this title for multifamily housing 22
to facilitate the acquisition or preservation of such multi-23
family housing properties in areas where the Secretary de-24
termines there is a risk of loss of affordable housing. 25
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‘‘(h) ADMINISTRATIVEEXPENSES.—Of any amounts 1
made available for the program under this section for any 2
fiscal year, the Secretary may use not more than 3
$1,000,000 for administrative expenses for carrying out 4
such program. 5
‘‘(i) A
UTHORIZATION OFAPPROPRIATIONS.—There is 6
authorized to be appropriated for the program under this 7
section $200,000,000 for each of fiscal years 2026 8
through 2030. 9
‘‘(j) R
ULEMAKING.— 10
‘‘(1) I
N GENERAL.—Not later than 180 days 11
after the date of enactment of the Rural Housing 12
Service Reform Act of 2025, the Secretary shall— 13
‘‘(A) publish an advance notice of proposed 14
rulemaking; and 15
‘‘(B) consult with appropriate stake-16
holders. 17
‘‘(2) I
NTERIM FINAL RULE .—Not later than 1 18
year after the date of enactment of the Rural Hous-19
ing Service Reform Act of 2025, the Secretary shall 20
publish an interim final rule to carry out this sec-21
tion.’’. 22
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SEC. 202. RENTAL ASSISTANCE CONTRACT AUTHORITY. 1
Section 521(d) of the Housing Act of 1949 (42 2
U.S.C. 1490a(d)), as amended by section 101(b), is 3
amended— 4
(1) in paragraph (1)— 5
(A) by redesignating subparagraphs (B) 6
and (C) as subparagraphs (C) and (D), respec-7
tively; 8
(B) by inserting after subparagraph (A) 9
the following: 10
‘‘(B) upon request of an owner of a project fi-11
nanced under section 514 or 515, the Secretary is 12
authorized to enter into renewal of such agreements 13
for a period of 20 years or the term of the loan, 14
whichever is shorter, subject to amounts made avail-15
able in appropriations Acts;’’; 16
(C) in subparagraph (C), as so redesig-17
nated, by striking ‘‘subparagraph (A)’’ and in-18
serting ‘‘subparagraphs (A) and (B)’’; and 19
(D) in subparagraph (D), as so redesig-20
nated, by striking ‘‘subparagraphs (A) and 21
(B)’’ and inserting ‘‘subparagraphs (A), (B), 22
and (C)’’; 23
(2) in paragraph (2), by striking ‘‘shall’’ and 24
inserting ‘‘may’’; and 25
(3) by adding at the end the following: 26
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‘‘(4) In the case of any rental assistance contract au-1
thority that becomes available because of the termination 2
of assistance on behalf of an assisted family— 3
‘‘(A) at the option of the owner of the rental 4
project, the Secretary shall provide the owner a pe-5
riod of not more than 6 months before unused as-6
sistance is made available pursuant to subparagraph 7
(B) during which the owner may use such assistance 8
authority to provide assistance on behalf of an eligi-9
ble unassisted family that— 10
‘‘(i) is residing in the same rental project 11
in which the assisted family resided before the 12
termination; or 13
‘‘(ii) newly occupies a dwelling unit in the 14
rental project during that 6-month period; and 15
‘‘(B) except for assistance used as provided in 16
subparagraph (A), the Secretary shall use such re-17
maining authority to provide assistance on behalf of 18
eligible families residing in other rental projects 19
originally financed under section 514, 515, or 516.’’. 20
TITLE III—NATIVE CDFI 21
RELENDING 22
SEC. 301. NATIVE CDFI RELENDING PROGRAM. 23
Section 502 of the Housing Act of 1949 (42 U.S.C. 24
1472) is amended by adding at the end the following: 25
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‘‘(j) SETASIDE FORNATIVECOMMUNITYDEVELOP-1
MENTFINANCIALINSTITUTIONS.— 2
‘‘(1) D
EFINITIONS.—In this subsection— 3
‘‘(A) the term ‘Alaska Native’ has the 4
meaning given the term ‘Native’ in section 3(b) 5
of the Alaska Native Claims Settlement Act (43 6
U.S.C. 1602(b)); 7
‘‘(B) the term ‘appropriate congressional 8
committees’ means— 9
‘‘(i) the Committee on Agriculture of 10
the Senate; 11
‘‘(ii) the Committee on Indian Affairs 12
of the Senate; 13
‘‘(iii) the Committee on Banking, 14
Housing, and Urban Affairs of the Senate; 15
‘‘(iv) the Committee on Agriculture of 16
the House of Representatives; 17
‘‘(v) the Committee on Natural Re-18
sources of the House of Representatives; 19
and 20
‘‘(vi) the Committee on Financial 21
Services of the House of Representatives; 22
‘‘(C) the term ‘community development fi-23
nancial institution’ has the meaning given the 24
term in section 103 of the Community Develop-25
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ment Banking and Financial Institutions Act of 1
1994 (12 U.S.C. 4702); 2
‘‘(D) the term ‘Indian Tribe’ has the 3
meaning given the term ‘Indian tribe’ in section 4
4 of the Native American Housing Assistance 5
and Self-Determination Act of 1996 (25 U.S.C. 6
4103); 7
‘‘(E) the term ‘Native community develop-8
ment financial institution’ means an entity— 9
‘‘(i) that has been certified as a com-10
munity development financial institution by 11
the Secretary of the Treasury; 12
‘‘(ii) that is not less than 51 percent 13
owned or controlled by members of Indian 14
Tribes, Alaska Native communities, or Na-15
tive Hawaiian communities; and 16
‘‘(iii) for which not less than 51 per-17
cent of the activities of the entity serve In-18
dian Tribes, Alaska Native communities, 19
or Native Hawaiian communities; 20
‘‘(F) the term ‘Native Hawaiian’ has the 21
meaning given the term in section 801 of the 22
Native American Housing Assistance and Self- 23
Determination Act of 1996 (25 U.S.C. 4221); 24
and 25
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‘‘(G) the term ‘priority Tribal land’ 1
means— 2
‘‘(i) any land located within the 3
boundaries of— 4
‘‘(I) an Indian reservation, pueb-5
lo, or rancheria; or 6
‘‘(II) a former reservation within 7
Oklahoma; 8
‘‘(ii) any land not located within the 9
boundaries of an Indian reservation, pueb-10
lo, or rancheria, the title to which is held— 11
‘‘(I) in trust by the United States 12
for the benefit of an Indian Tribe or 13
an individual Indian; 14
‘‘(II) by an Indian Tribe or an 15
individual Indian, subject to restric-16
tion against alienation under laws of 17
the United States; or 18
‘‘(III) by a dependent Indian 19
community; 20
‘‘(iii) any land located within a region 21
established pursuant to section 7(a) of the 22
Alaska Native Claims Settlement Act (43 23
U.S.C. 1606(a)); 24
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‘‘(iv) Hawaiian Home Lands, as de-1
fined in section 801 of the Native Amer-2
ican Housing Assistance and Self-Deter-3
mination Act of 1996 (25 U.S.C. 4221); or 4
‘‘(v) those areas or communities des-5
ignated by the Assistant Secretary of In-6
dian Affairs of the Department of the Inte-7
rior that are near, adjacent, or contiguous 8
to reservations where financial assistance 9
and social service programs are provided to 10
Indians because of their status as Indians. 11
‘‘(2) P
URPOSE.—The purpose of this subsection 12
is to— 13
‘‘(A) increase homeownership opportunities 14
for Indian Tribes, Alaska Native Communities, 15
and Native Hawaiian communities in rural 16
areas; and 17
‘‘(B) provide capital to Native community 18
development financial institutions to increase 19
the number of mortgage transactions carried 20
out by those institutions. 21
‘‘(3) S
ET ASIDE FOR NATIVE CDFIS .—Of 22
amounts appropriated to make direct loans under 23
this section for each fiscal year, the Secretary may 24
use not more than $50,000,000 to make direct loans 25
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to Native community development financial institu-1
tions in accordance with this subsection. 2
‘‘(4) A
PPLICATION REQUIREMENTS .—A Native 3
community development financial institution desiring 4
a loan under this subsection shall demonstrate that 5
the institution— 6
‘‘(A) can provide the non-Federal cost 7
share required under paragraph (6); and 8
‘‘(B) is able to originate and service loans 9
for single family homes. 10
‘‘(5) L
ENDING REQUIREMENTS .—A Native com-11
munity development financial institution that re-12
ceives a loan pursuant to this subsection shall— 13
‘‘(A) use those amounts to make loans to 14
borrowers— 15
‘‘(i) who otherwise meet the require-16
ments for a loan under this section; and 17
‘‘(ii) who— 18
‘‘(I) are members of an Indian 19
Tribe, an Alaska Native community, 20
or a Native Hawaiian community; or 21
‘‘(II) maintain a household in 22
which not less than 1 member is a 23
member of an Indian Tribe, an Alaska 24
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Native community, or a Native Ha-1
waiian community; and 2
‘‘(B) in making loans under subparagraph 3
(A), give priority to borrowers described in that 4
subparagraph who are residing on priority Trib-5
al land. 6
‘‘(6) N
ON-FEDERAL COST SHARE .— 7
‘‘(A) I
N GENERAL.—A Native community 8
development financial institution that receives a 9
loan under this section shall be required to 10
match not less than 20 percent of the amount 11
received. 12
‘‘(B) W
AIVER.—In the case of a loan for 13
which amounts are used to make loans to bor-14
rowers described in paragraph (5)(B), the Sec-15
retary shall waive the non-Federal cost share 16
requirement described in subparagraph (A) with 17
respect to those loan amounts. 18
‘‘(7) R
EPORTING.— 19
‘‘(A) A
NNUAL REPORT BY NATIVE 20
CDFIS.—Each Native community development 21
financial institution that receives a loan pursu-22
ant to this subsection shall submit an annual 23
report to the Secretary on the lending activities 24
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of the institution using the loan amounts, which 1
shall include— 2
‘‘(i) a description of the outreach ef-3
forts of the institution in local communities 4
to identify eligible borrowers; 5
‘‘(ii) a description of how the institu-6
tion leveraged additional capital to reach 7
prospective borrowers; 8
‘‘(iii) the number of loan applications 9
received, approved, and deployed; 10
‘‘(iv) the average loan amount; 11
‘‘(v) the number of finalized loans 12
that were made on Tribal trust lands and 13
not on Tribal trust lands; and 14
‘‘(vi) the number of finalized loans 15
that were made on priority Tribal land and 16
not priority Tribal land. 17
‘‘(B) A
NNUAL REPORT TO CONGRESS .— 18
Not later than 1 year after the date of enact-19
ment of this subsection, and every year there-20
after, the Secretary shall submit to the appro-21
priate congressional communities a report that 22
includes— 23
‘‘(i) a list of loans made to Native 24
community development financial institu-25
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tions pursuant to this subsection, including 1
the name of the institution and the loan 2
amount; 3
‘‘(ii) the percentage of loans made 4
under this section to members of Indian 5
Tribes, Alaska Native communities, and 6
Native Hawaiian communities, respectively, 7
including a breakdown of loans made to 8
households residing on and not on Tribal 9
trust lands; and 10
‘‘(iii) the average loan amount made 11
by Native community development finan-12
cial institutions pursuant to this sub-13
section. 14
‘‘(C) E
VALUATION OF PROGRAM .—Not 15
later than 3 years after the date of enactment 16
of this subsection, the Secretary and the Sec-17
retary of the Treasury shall conduct an evalua-18
tion of and submit to the appropriate congres-19
sional committees a report on the program 20
under this subsection, which shall— 21
‘‘(i) evaluate the effectiveness of the 22
program, including an evaluation of the de-23
mand for loans under the program; and 24
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‘‘(ii) include recommendations relating 1
to the program, including whether— 2
‘‘(I) the program should be ex-3
panded to such that all community de-4
velopment financial institutions may 5
make loans under the program to the 6
borrowers described in paragraph (5); 7
and 8
‘‘(II) the set aside amount para-9
graph (3) should be modified in order 10
to match demand under the program. 11
‘‘(8) G
RANTS FOR OPERATIONAL SUPPORT .— 12
‘‘(A) I
N GENERAL.—The Secretary shall 13
make grants to Native community development 14
financial institutions that receive a loan under 15
this section to provide operational support and 16
other related services to those institutions, sub-17
ject to— 18
‘‘(i) the satisfactory performance, as 19
determined by the Secretary, of a Native 20
community development financial institu-21
tion in carrying out this section; and 22
‘‘(ii) the availability of funding. 23
‘‘(B) A
MOUNT.—A Native community de-24
velopment financial institution that receives a 25
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loan under this section shall be eligible to re-1
ceive a grant described in subparagraph (A) in 2
an amount equal to 20 percent of the direct 3
loan amount received by the Native community 4
development financial institution under the pro-5
gram under this section as of the date on which 6
the direct loan is awarded. 7
‘‘(9) O
UTREACH AND TECHNICAL ASSIST -8
ANCE.—There is authorized to be appropriated to 9
the Secretary $1,000,000 for each of fiscal years 10
2025, 2026, and 2027— 11
‘‘(A) to provide technical assistance to Na-12
tive community development financial institu-13
tions— 14
‘‘(i) relating to homeownership and 15
other housing-related assistance provided 16
by the Secretary; and 17
‘‘(ii) to assist those institutions to 18
perform outreach to eligible homebuyers 19
relating to the loan program under this 20
section; or 21
‘‘(B) to provide funding to a national orga-22
nization representing Native American housing 23
interests to perform outreach and provide tech-24
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nical assistance as described in clauses (i) and 1
(ii), respectively, of subparagraph (A). 2
‘‘(10) A
DMINISTRATIVE COSTS.—In addition to 3
other available funds, the Secretary may use not 4
more than 3 percent of the amounts made available 5
to carry out this subsection for administration of the 6
programs established under this subsection.’’. 7
TITLE IV—SECTION 504 LOANS 8
AND GRANTS 9
SEC. 401. MODIFICATIONS TO LOANS AND GRANTS FOR 10
MINOR IMPROVEMENTS TO FARM HOUSING 11
AND BUILDINGS; INCOME ELIGIBILITY. 12
Section 504(a) of the Housing Act of 1949 (42 13
U.S.C. 1474(a)) is amended— 14
(1) in the first sentence, by inserting ‘‘and may 15
make a loan to an eligible low-income applicant’’ 16
after ‘‘applicant’’; 17
(2) by inserting ‘‘Not less than 60 percent of 18
loan funds made available under this section shall be 19
reserved and made available for very low-income ap-20
plicants.’’ after the first sentence; and 21
(3) by striking ‘‘$7,500’’ and inserting 22
‘‘$15,000’’. 23
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TITLE V—RURAL COMMUNITY 1
DEVELOPMENT INITIATIVE 2
GRANTS 3
SEC. 501. RURAL COMMUNITY DEVELOPMENT INITIATIVE. 4
Subtitle E of the Consolidated Farm and Rural De-5
velopment Act (7 U.S.C. 2009 et seq.) is amended by add-6
ing at the end the following: 7
‘‘SEC. 381O. RURAL COMMUNITY DEVELOPMENT INITIA-8
TIVE. 9
‘‘(a) D
EFINITIONS.—In this section: 10
‘‘(1) E
LIGIBLE ENTITY.—The term ‘eligible en-11
tity’ means— 12
‘‘(A) a private, nonprofit community-based 13
housing or community development organiza-14
tion; 15
‘‘(B) a rural community; or 16
‘‘(C) a federally recognized Indian Tribe. 17
‘‘(2) E
LIGIBLE INTERMEDIARY .—The term ‘eli-18
gible intermediary’ means a qualified— 19
‘‘(A) private, nonprofit organization; or 20
‘‘(B) public organization. 21
‘‘(b) E
STABLISHMENT.—The Secretary shall estab-22
lish a Rural Community Development Initiative, under 23
which the Secretary shall provide grants to eligible inter-24
mediaries to carry out programs to provide financial and 25
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technical assistance to eligible entities to develop the ca-1
pacity and ability of eligible entities to carry out projects 2
to improve housing, community facilities, and community 3
and economic development projects in rural areas. 4
‘‘(c) A
MOUNT OFGRANTS.—The amount of a grant 5
provided to an eligible intermediary under this section 6
shall be not more than $250,000. 7
‘‘(d) M
ATCHINGFUNDS.— 8
‘‘(1) I
N GENERAL.—An eligible intermediary re-9
ceiving a grant under this section shall provide 10
matching funds from other sources, including Fed-11
eral funds for related activities, in an amount not 12
less than the amount of the grant. 13
‘‘(2) W
AIVER.—The Secretary may waive para-14
graph (1) with respect to a project that would be 15
carried out in a persistently poor rural region, as de-16
termined by the Secretary.’’. 17
TITLE VI—REPORTS 18
SEC. 601. ANNUAL REPORT ON RURAL HOUSING PRO-19
GRAMS. 20
Title V of the Housing Act of 1949 (42 U.S.C. 1471 21
et seq.), as amended by this Act, is amended by adding 22
at the end the following: 23
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‘‘SEC. 546. ANNUAL REPORT. 1
‘‘(a) I
NGENERAL.—The Secretary shall submit to 2
the appropriate committees of Congress and publish on 3
the website of the Department of Agriculture an annual 4
report on rural housing programs carried out under this 5
title, which shall include significant details on the health 6
of Rural Housing Service programs, including— 7
‘‘(1) raw data sortable by programs and by re-8
gion regarding loan performance; 9
‘‘(2) the housing stock of those programs, in-10
cluding information on why properties end participa-11
tion in those programs, such as for maturation, pre-12
payment, foreclosure, or other servicing issues; and 13
‘‘(3) risk ratings for properties assisted under 14
those programs. 15
‘‘(b) P
ROTECTION OFINFORMATION.—The data in-16
cluded in each report required under subsection (a) may 17
be aggregated or anonymized to protect participant finan-18
cial or personal information.’’. 19
SEC. 602. GAO REPORT ON RURAL HOUSING SERVICE 20
TECHNOLOGY. 21
Not later than 1 year after the date of enactment 22
of this Act, the Comptroller General of the United States 23
shall submit to Congress a report that includes— 24
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(1) an analysis of how the outdated technology 1
used by the Rural Housing Service impacts partici-2
pants in the programs of the Rural Housing Service; 3
(2) an estimate of the amount of funding that 4
is needed to modernize the technology used by the 5
Rural Housing Service; and 6
(3) an estimate of the number and type of new 7
employees the Rural Housing Service needs to mod-8
ernize the technology used by the Rural Housing 9
Service. 10
TITLE VII—RURAL HOUSING 11
VOUCHER PROGRAM 12
SEC. 701. ADJUSTMENT TO RURAL DEVELOPMENT VOUCH-13
ER AMOUNT. 14
(a) I
NGENERAL.—Not later than 2 years after the 15
date of enactment of this Act, the Secretary of Agriculture 16
shall issue regulations to establish a process for adjusting 17
the voucher amount provided under section 542 of the 18
Housing Act of 1949 (42 U.S.C. 1490r) after the issuance 19
of the voucher following an interim or annual review of 20
the amount of the voucher. 21
(b) I
NTERIMREVIEW.—The interim review described 22
in subsection (a) shall, at the request of a tenant, allow 23
for a recalculation of the voucher amount when the tenant 24
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experiences a reduction in income, change in family com-1
position, or change in rental rate. 2
(c) A
NNUALREVIEW.— 3
(1) I
N GENERAL.—The annual review described 4
in subsection (a) shall require tenants to annually 5
recertify the family composition of the household 6
and that the family income of the household does 7
not exceed 80 percent of the area median income at 8
a time determined by the Secretary of Agriculture. 9
(2) C
ONSIDERATIONS.—If a tenant does not re-10
certify the family composition and family income of 11
the household within the time frame required under 12
paragraph (1), the Secretary of Agriculture— 13
(A) shall consider whether extenuating cir-14
cumstances caused the delay in recertification; 15
and 16
(B) may alter associated consequences for 17
the failure to recertify based on those cir-18
cumstances. 19
(3) E
FFECTIVE DATE.—Following the annual 20
review of a voucher under subsection (a), the up-21
dated voucher amount shall be effective on the 1st 22
day of the month following the expiration of the 23
voucher. 24
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(d) DEADLINE.—The process established under sub-1
section (a) shall require the Secretary of Agriculture to 2
review and update the voucher amount described in sub-3
section (a) for a tenant not later than 60 days before the 4
end of the voucher term. 5
SEC. 702. ELIGIBILITY FOR RURAL HOUSING VOUCHERS. 6
Section 542 of the Housing Act of 1949 (42 U.S.C. 7
1490r) is amended by adding at the end the following: 8
‘‘(c) E
LIGIBILITY OFHOUSEHOLDS IN SECTIONS 9
514, 515,
AND516 PROJECTS.—The Secretary may pro-10
vide rural housing vouchers under this section for any low- 11
income household (including those not receiving rental as-12
sistance) residing for a term longer than the remaining 13
term of their lease that is in effect on the date of prepay-14
ment, foreclosure, or mortgage maturity, in a property fi-15
nanced with a loan under section 514 or 515 or a grant 16
under section 516 that has— 17
‘‘(1) been prepaid with or without restrictions 18
imposed by the Secretary pursuant to section 19
502(c)(5)(G)(ii)(I); 20
‘‘(2) been foreclosed; or 21
‘‘(3) matured after September 30, 2005.’’. 22
SEC. 703. AMOUNT OF VOUCHER ASSISTANCE. 23
Notwithstanding any other provision of law, in the 24
case of any rural housing voucher provided pursuant to 25
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section 542 of the Housing Act of 1949 (42 U.S.C. 1
1490r), the amount of the monthly assistance payment for 2
the household on whose behalf the assistance is provided 3
shall be determined as provided in subsection (a) of such 4
section 542, including providing for interim and annual 5
review of the voucher amount in the event of a change 6
in household composition or income or rental rate. 7
TITLE VIII—TRANSFERS TO 8
NONPROFIT ORGANIZATIONS 9
SEC. 801. TRANSFER OF MULTIFAMILY RURAL HOUSING 10
PROJECTS. 11
Section 515 of the Housing Act of 1949 (42 U.S.C. 12
1485) is amended— 13
(1) in subsection (h), by adding at the end the 14
following: 15
‘‘(3) T
RANSFER TO NONPROFIT ORGANIZA -16
TIONS.—A nonprofit or public body purchaser, in-17
cluding a limited partnership with a general partner 18
with the principal purpose of providing affordable 19
housing, may purchase a property for which a loan 20
is made or insured under this section that has re-21
ceived a market value appraisal, without addressing 22
rehabilitation needs at the time of purchase, if the 23
purchaser— 24
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‘‘(A) makes a commitment to address re-1
habilitation needs during ownership and long- 2
term use restrictions on the property; and 3
‘‘(B) at the time of purchase, accepts long- 4
term use restrictions on the property.’’; and 5
(2) in subsection (w)(1), in the first sentence in 6
the matter preceding subparagraph (A), by striking 7
‘‘9 percent’’ and inserting ‘‘50 percent’’. 8
TITLE IX—SECTION 502 LOANS 9
AND GUARANTEES 10
SEC. 901. EXTENSION OF LOAN TERM. 11
(a) I
NGENERAL.—Section 502(a)(2) of the Housing 12
Act of 1949 (42 U.S.C. 1472(a)(2)) is amended— 13
(1) by inserting ‘‘(A)’’ before ‘‘The Secretary’’; 14
(2) in subparagraph (A), as so designated, by 15
striking ‘‘paragraph’’ and inserting ‘‘subparagraph’’; 16
and 17
(3) by adding at the end the following: 18
‘‘(B) The Secretary may refinance or modify 19
the period of any loan, including any refinanced 20
loan, made under this section in accordance with 21
terms and conditions as the Secretary shall pre-22
scribe, but in no event shall the total term of the 23
loan from the date of the refinance or modification 24
exceed 40 years.’’. 25
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(b) APPLICATION.—The amendment made under 1
subsection (a) shall apply with respect to loans made 2
under section 502 of the Housing Act of 1949 (42 U.S.C. 3
1472) before, on, or after the date of enactment of this 4
Act. 5
SEC. 902. RELEASE OF LIABILITY FOR SECTION 502 GUAR-6
ANTEED BORROWER UPON ASSUMPTION OF 7
ORIGINAL LOAN BY NEW BORROWER. 8
Section 502(h)(10) of the Housing Act of 1949 (42 9
U.S.C. 1472(h)(10)) is amended to read as follows: 10
‘‘(10) T
RANSFER AND ASSUMPTION .—Upon the 11
transfer of property for which a guaranteed loan 12
under this subsection was made and the assumption 13
of the guaranteed loan by an approved eligible bor-14
rower, the original borrower of a guaranteed loan 15
under this subsection shall be relieved of liability 16
with respect to the loan.’’. 17
SEC. 903. DEPARTMENT OF AGRICULTURE LOAN RESTRIC-18
TIONS. 19
(a) D
EFINITIONS.—In this section, the terms ‘‘State’’ 20
and ‘‘Tribal organization’’ have the meanings given those 21
terms in section 658P of the Child Care and Development 22
Block Grant Act of 1990 (42 U.S.C. 9858n). 23
(b) R
EVISION.—The Secretary of Agriculture shall 24
revise section 3555.102(c) of title 7, Code of Federal Reg-25
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ulations, to exclude from the restriction under that sec-1
tion— 2
(1) a home-based business that is a licensed, 3
registered, or regulated child care provider under 4
State law or by a Tribal organization; and 5
(2) an applicant that has applied to become a 6
licensed, registered or regulated child care provider 7
under State law or by a Tribal organization. 8
TITLE X—ACCESSORY DWELLING 9
UNITS 10
SEC. 1001. LOAN GUARANTEES. 11
Section 502(h)(4) of the Housing Act of 1949 (42 12
U.S.C. 1472(h)(4)) is amended— 13
(1) by redesignating subparagraphs (A), (B), 14
and (C) as clauses (i), (ii), and (iii), respectively; 15
(2) by striking ‘‘Loans may be guaranteed’’ and 16
inserting the following: 17
‘‘(A) D
EFINITION.—In this paragraph, the 18
term ‘accessory dwelling unit’ means a single, 19
habitable living unit— 20
‘‘(i) with means of separate ingress 21
and egress; 22
‘‘(ii) that is usually subordinate in 23
size; 24
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‘‘(iii) that can be added to, created 1
within, or detached from a primary 1-unit, 2
single-family dwelling; and 3
‘‘(iv) in combination with a primary 4
1-unit, single family dwelling, constitutes a 5
single interest in real estate. 6
‘‘(B) S
INGLE FAMILY REQUIREMENT .— 7
Loans may be guaranteed’’; and 8
(3) by adding at the end the following: 9
‘‘(C) R
ULE OF CONSTRUCTION .—Nothing 10
in this paragraph shall be construed to prohibit 11
the leasing of an accessory dwelling unit or the 12
use of rental income derived from such a lease 13
to qualify for a loan guaranteed under this sub-14
section— 15
‘‘(i) after the date of enactment of the 16
Rural Housing Service Reform Act of 17
2025; and 18
‘‘(ii) if the property that is the subject 19
of the loan was constructed before the date 20
of enactment of the Rural Housing Service 21
Reform Act of 2025.’’. 22
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TITLE XI—TIME FRAME FOR 1
COMPLETING APPLICATION 2
REVIEW 3
SEC. 1101. APPLICATION REVIEW. 4
(a) S
ENSE OFCONGRESS.—It is the sense of Con-5
gress, not later than 90 days after the date on which the 6
Secretary of Agriculture receives an application for a loan, 7
grant or combined loan and grant under section 502 or 8
504 of the Housing Act of 1949 (42 U.S.C. 1472, 1474), 9
the Secretary of Agriculture should— 10
(1) review the application; 11
(2) complete the underwriting; 12
(3) make a determination of eligibility with re-13
spect to the application; and 14
(4) notify the applicant of determination. 15
(b) R
EPORT.— 16
(1) I
N GENERAL.—Not later than 90 days after 17
the date of enactment of this Act, and annually 18
thereafter until the date described in paragraph (2), 19
the Secretary of Agriculture shall submit to the 20
Committee on Banking, Housing, and Urban Affairs 21
of the Senate and the Committee on Financial Serv-22
ices of the House of Representatives a report— 23
(A) detailing the timeliness of eligibility de-24
terminations and final determinations with re-25
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spect to applications under section 502 and 504 1
of the Housing Act of 1949 (42 U.S.C. 1472, 2
1474), including justifications for any eligibility 3
determinations taking longer than 90 days; 4
(B) that includes recommendations to 5
shorten the timeline for notifications of eligi-6
bility determinations described in paragraph (1) 7
to not more than 90 days. 8
(2) D
ATE DESCRIBED.—The date described in 9
this paragraph is the date on which, during the pre-10
ceding 5-year period, the Secretary of Agriculture 11
provides each eligibility determination described in 12
paragraph (1) during the 90-day period beginning 13
on the date on which each application is received. 14
Æ
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