Q&A: Affordable Housing in Rural America

With U.S. Sen. Chuck Grassley

Q: How does the 21^st Century ROAD to Housing Act help home buyers?

A: During my annual 99 county meetings, I hear regularly from Iowa families, employers and civic leaders about the importance of affordable housing in their local communities. Homeownership is a pivotal rung on the ladder of prosperity, bringing individuals a step closer to achieving the American Dream, enriching civic life and building lasting connections in the community. As a member of the Senate Budget Committee, I've worked to promote affordable housing and root out wasteful spending in federal housing programs.

President Trump highlighted homeownership in his recent State of the Union address. Affordability is top of mind for people who find buying a house out of their reach. The Republican-led Congress is working to make housing more affordable without bloated government federal spending. Our bipartisan, comprehensive legislation - called the 21^st Century ROAD to Housing Act - is a market-based approach to help Americans afford to purchase a home and drive down rent for people who choose to rent. As President John F. Kennedy said about tax cuts, "a rising tide lifts all boats." By making it easier for builders to build, lenders to lend and families to save, our bipartisan bill helps renters and buyers. With collaboration from stakeholders across the industry, including housing advocates, builders, realtors and lenders, our legislation would increase the housing supply, cut burdensome regulations and root out waste, fraud and abuse in government programs.

Our legislation addresses affordability by eliminating outdated regulations that jack up the cost to build homes. Just consider, regulations account for about 25% of costs for a single-family house and 40% for a multi-family development. That's hefty overhead that pushes too many people out of the housing market. Removing layers of burdensome regulations would empower home builders and state and local governments to jump-start home building in communities across the country.

Q: Does your bill address homeownership for rural communities?

A: Yes. Every American deserves the opportunity to secure the American Dream of homeownership, including in Rural America. Our bipartisan legislation seeks to strengthen the housing supply to meet growing demand. It would maintain local zoning control and modernize rural housing programs. Specifically, it directs the Housing and Urban Development (HUD) and U.S. Department of Agriculture (USDA) to coordinate joint environmental reviews for housing projects funded by both agencies. This reform will cut duplicative bureaucracy, save unnecessary costs and accelerate construction timelines in rural communities. For the first time in three decades, existing federal programs would be updated to jump-start affordable housing construction. Our bill would streamline inspections, encourage innovation and direct federal housing dollars towards communities that prioritize affordability. In addition, the bill promotes self-sufficiency for lower-income families by allowing them to build savings, pursue economic mobility and move toward homeownership.

Veterans would benefit from boosted transparency and mortgage disclosures from the Federal Housing Administration so these hometown heroes can make informed borrowing decisions. It also removes financial penalties by excluding disability compensation from income calculations under the HUD-Veterans Affairs Supporting Housing program that provides rental assistance for eligible veterans.

Representative government is a two-way street, I appreciate the efforts of local chambers of commerce and government leaders who come to Washington, D.C. to advocate on behalf of their communities. This effort at the grassroots informs my work at the policymaking tables, including housing affordability. That's why I'm supporting the 21^st Century ROAD to Housing Act.

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