NEWS: Sen. Schiff Joins Welch, Justice, Hyde-Smith to Introduce Bipartisan Bill to Boost Housing Affordability, Spur Economic and Agricultural Growth Across Rural America

Bill would help 30 million Americans-including over 4,000,000 Californians- access rural housing assistance for the first time

Washington, D.C. - U.S. Senator Adam Schiff (D-Calif.), a member of the Agriculture Committee joined Senators Peter Welch (D-Vt.), Jim Justice (R-W.Va.), and Cindy Hyde-Smith (R-Miss.) in introducing the Fostering the Availability in Rural Markets of (FARM) Home Loans Act, bipartisan, bicameral legislation to spur rural economic growth by helping more homebuyers qualify for rural housing assistance.

The Senators' legislation would modernize housing assistance eligibility requirements and help nearly 30 million homebuyers access rural housing assistance for the first time.

Farm credit institutions like The Farm Credit Council provide vital flexible lending assistance for rural homebuyers. However, under the Farm Credit Act of 1971, farm credit institutions are unable to issue loans to homebuyers in areas living in areas with a population of greater than 2,500.

"Our country is facing a severe housing crisis, and it's time for Congress to act. I'm proud to join Senators Welch and Justice to introduce this bipartisan legislation to help more rural communities obtain the financial support they need to buy a home," said Senator Schiff.

"We're in the midst of an affordable housing crisis, and Vermonters are amongst the hardest hit. Making farm credit loans more accessible is vital to addressing this crisis and will help millions of rural families experience the joy of homeownership for the first time," said Senator Welch. "Congress must pass our bipartisan legislation to expand rural housing assistance and make homeownership a reality for rural communities in Vermont, West Virginia, and across America."

"I'm so proud to be working on the FARM Home Loans Act which helps rural communities gain greater access to home loans. All over rural America, folks just want to own a home, raise their families, and build something that lasts. This bill helps increase competition for credit and opens the door for over 230,000 West Virginians to do just that. The Farm Credit System is ingrained in our farming communities, and has a big role to play in continuing to create opportunities for the next generation in rural America," said Senator Justice.

"It is too hard for too many people to land a home mortgage by coming up with traditional down payments, especially in rural communities. The FARM Home Loans Act would change that by allowing the Farm Credit System to broaden the use of its flexible lending assistance to help qualify tens of thousands of rural families and individuals in Mississippi for homeownership," said Senator Hyde-Smith. "I support this bipartisan effort to bring outdated population eligibility limits into the 21st century."

U.S. Representatives Kristen McDonald Rivet (D-MI-08) and Bill Huizenga (R-MI-04) introduced companion legislation in the U.S. House of Representatives.

"Buying a home is one of the great promises of the American Dream, but for too many, that promise is out of reach. We need to fix the housing crisis and break down the barriers that hold rural families back," said Rep. McDonald Rivet. "Our bill will make thousands of American homes eligible for farm credit loans, bringing those families one step closer to making their dream of homeownership a reality."

"Whether it's a farm operating loan or a home loan, having access to capital through the Farm Credit System is critical for communities across rural areas of Southwest Michigan," said Rep. Huizenga. "The FARM Home Loans Act modernizes outdated financing options for Michiganders who proudly fuel and depend on agricultural production. Updating this one-size-fits-all statute will spur economic growth and job creation in rural areas, while improving housing options in agricultural communities."

The FARM Home Loans Act would modernize the Farm Credit System's housing assistance eligibility requirements, giving 38% of the total U.S. population, including nearly 30 million new homebuyers, access to rural housing assistance from Farm Credit for the first time. The legislation would also update the Farm Credit System by increasing the Rural Home Loan lending authority population limit from 2,500 to 10,000. This change aligns the Farm Credit System's population limits closer to the U.S. Department of Agriculture's (USDA) rural housing program lending eligibility requirements, which permit home loans in certain areas with a population of 20,000 or more.

The FARM Home Loans Act is supported by the American Farm Bureau Federation; Farm Credit Council; Housing Assistance Council; National Cooperative Business Association (NCBA-CLUSA); National Council of Farmer Cooperatives; and National Farmers Union.

Learn more about the FARM Home Loans Act.

The full text of the bill is available here.

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