U.S. Reps. Emanuel Cleaver and Zach Nunn have introduced the bipartisan Rural Housing Service Reform Act, drafted to preserve affordable housing, improve program oversight, and expand access to safe homes for families, seniors, and workers in rural communities across the country.
“Every American deserves a safe, stable and affordable place to call home, regardless of their ZIP code,” said Rep. Cleaver. “Tragically, as communities struggle to build more housing and rural housing programs are unable to keep up with demand, residents in rural Missouri and beyond are struggling to stay afloat. Congress must take action to lower costs by cutting through unnecessary red tape and modernizing existing housing programs to maximize efficiency and draw more private investment—which is precisely what the bipartisan Rural Housing Service Reform Act will do. I’m proud to introduce this legislation with Congressman Nunn as we seek to make housing more affordable for hardworking families.”
More than 40% of Missourians spend more than one-third of their income on rent, while rural communities face worsening shortages as aging USDA-financed properties leave the program when mortgages mature. Outdated USDA systems, slow processing times, and limited oversight have only compounded these challenges—leaving families with fewer options and raising the risk of displacement.
Key provisions of the Rural Housing Service Reform Act include:
- The creation of a permanent program to preserve USDA-financed affordable rental housing by enabling nonprofits to acquire properties and keep rental assistance after loans mature
- Modernize USDA technology and staffing to speed up applications, improve oversight, and prevent fraud in the system
- Expand home repair grants and financing to help rural families maintain and grow their homes
- Support rural childcare by allowing loan guarantees for homes with in-home daycare facilities
- Require annual reporting and Government Accountability Office (GAO) audits to ensure transparency and protect taxpayer investments
“More and more Iowans are watching the dream of homeownership slip out of reach,” said Rep. Nunn. “Too many programs meant to help are outdated, buried in red tape, and no longer work for the families they were created to serve. This bipartisan bill cuts through that bureaucracy to protect affordable housing, speed up repairs, and modernize USDA’s tools—so rural families, seniors, and workers can build their future right here in Iowa.”
The Rural Housing Service Reform Act has earned broad support from leading housing organizations, including Habitat for Humanity International, Habitat for Humanity Iowa, National Rural Housing Coalition, National Housing Law Project, Council for Affordable and Rural Housing, Bipartisan Policy Center Action, Local Initiatives Support Corporation, Housing Assistance Council, Enterprise Community Partners, Mortgage Bankers Association, Council of State Community Development Agencies, National Association of Counties, and AARP.
“As our nation continues to grapple with a housing shortage and affordability crisis, BPC Action commends Reps. Zach Nunn and Emanuel Cleaver II for their bipartisan leadership in introducing the Rural Housing Service Reform Act,” said Michele Stockwell, President of Bipartisan Policy Center Action (BPC Action). “This legislation reforms and strengthens USDA’s housing programs so they can continue to meet the needs of rural households while expanding access to homeownership opportunities.”
Bill Killmer, SVP of Legislative Affairs for the Mortgage Bankers Association (MBA), added: “The Mortgage Bankers Association applauds the introduction of the Rural Housing Service Reform Act. This legislation takes meaningful steps to preserve and expand affordable housing options in rural communities, while also providing long-term stability for rental assistance. MBA supports policies that increase housing opportunities for rural families, and we look forward to working with Congress to see this important bill enacted—particularly its provisions that improve financing options for accessory dwelling units and loan assumptions.”
The Senate version of the Rural Housing Service Reform Act, led by Sens. Tina Smith and Mike Rounds, recently advanced through the Senate Banking Committee as part of a broader housing package. The overall package is sponsored by Banking Committee Chairman Tim Scott and Ranking Member Elizabeth Warren.
Click here for more on the Rural Housing Service Reform Act.
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