Cortez Masto, Smith, Rounds Push Bipartisan Legislation to Increase Access to Affordable Housing in Rural Communities

Washington, D.C. - U.S. Senator Catherine Cortez Masto (D-Nev.) joined Senators Tina Smith (D-Minn.) and Mike Rounds (R-S.D.) on bipartisan legislation to improve federal rural housing programs and strengthen the supply of affordable housing in rural America. The Rural Housing Service Reform Act would represent the most significant Rural Housing Service reforms in decades.

"Working families in Silver State should have access to secure, affordable housing no matter where they live," said Senator Cortez Masto. "This bipartisan legislation would provide vital resources to improve access to affordable housing in our rural communities, from Elko to Ely."

The Rural Housing Service expands housing opportunities by offering loans, grants, and rental assistance to rural communities across the country. Rural parts of the country saw only a 1.7% increase in the number of housing units between 2010 and 2020, with almost half of states seeing a decrease in the number of rural units. At the same time, homelessness in rural counties is currently increasing.

The Rural Housing Service Reform Act would improve and build upon a number of U.S. Department of Agriculture (USDA) rural housing programs. Specifically, the bill would:

• Fix a longstanding problem for properties, known as Sec. 515 properties, that were financed by the USDA decades ago and now have maturing mortgages, by making it easier for non-profits to acquire those properties and by decoupling rental assistance so that assistance doesn't disappear when those mortgages mature;
• Make permanent a USDA pilot program to make mortgage loans available in Native communities by partnering with local Community Development Financial Institutions (CDFI), lenders designed to provide financing and support to underserved communities;
• Bring the USDA's outdated way of measuring incomes in line with the U.S. Department of Housing and Urban Development's practices;
• Modernize the USDA's foreclosure process to cut red tape, better protect homeowners, and ensure USDA-owned properties stay affordable;
• Update the rules for the home repair loan program to make it less burdensome to get smaller loans;
• Require USDA to speed up their loan approval process;
• And make much-needed investments in IT so that USDA can process loans more quickly and with less staff time wasted on paperwork or manual data entry.

This legislation has been endorsed by the National Rural Housing Coalition, Local Initiatives Support Corporation, Housing Assistance Council, Enterprise Community Partners, Mortgage Bankers Association, Council of State Community Development Agencies, Habitat for Humanity International, National Housing Law Project, AARP, Council for Affordable and Rural Housing, Bipartisan Policy Center Action, and the National Association of Counties.

Supportive statements from endorsing organizations can be found here. The full text of the bill can be accessed here.

Senator Cortez Masto is a champion for Nevada's rural communities, working across the aisle to deliver for families. She ensured rural Nevada communities have better access to federal funds and services through the Rural Partners Network. In the Bipartisan Infrastructure Law, she secured funding for rural schools and over $460 million for broadband. She also made sure the law included her legislation to help rural counties with internet access at local schools and streamline federal broadband funding to improve internet access for rural areas. She's also introduced legislation to provide funds for homeowners to disaster-proof their houses, including by fireproofing, which is particularly important in rural and remote communities. Recently, she reintroduced the HOME and PRICE Acts to increase the supply of and access to affordable housing.

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