USDA Rural Development Announces Pilot to Cut Red Tape, Preserve and Produce Affordable Rural Rental Housing

(Washington, D.C., September 22, 2026) - U.S. Department of Agriculture Rural Development today announced the Multifamily Housing Loan Preservation Pilot and Multifamily Housing Guaranteed Loan Notice of Loan-to-Cost Percentage Change to preserve and produce affordable rural rental housing. The pilot speeds property transfers, reduces duplicate paperwork, and preserves rural affordable housing stock.

USDA Rural Development's Rural Housing Service (RHS) supports affordable multifamily housing in rural communities. The RHS portfolio includes more than 12,000 properties and approximately 400,000 affordable rental units, with 95% in the Section 515 Rural Rental Housing portfolio. RHS will carry out the 24-month pilot under Sections 506(b), 515, and 538 of the Housing Act of 1949, continuing its mission to help rural families find affordable, decent, safe and sanitary rural rental housing.

"Under the leadership of President Trump, Vice President Vance, and Secretary of Agriculture Brooke Rollins, USDA Rural Development is restoring rural prosperity to our communities," said USDA Under Secretary forRural Development Glen Smith. "It's about protecting and preserving the quintessential American way of life that starts with a place to call home."

"Cutting red tape and increasing access to affordable housing is a priority of the Trump-Vance Administration," said Rural Housing Service Administrator George Kelly. "We are streamlining federal requirements that add time and cost without adding value. When we remove unnecessary steps and bureaucratic oversight, we help the government to operate like a business and preserve housing supply in rural America."

These actions build on the success of the Simple Transfer Pilot and respond to stakeholder feedback about obstacles to preserving rural housing. Current USDA transfer approval and closing timelines often exceed those of other lenders, the private sector, and funding partners. Those delays jeopardize transactions that keep rural housing affordable. The pilot aims to reach approximately 10% of the overall portfolio, helping housing partners complete transfers to preserve housing stock and increase rural prosperity.

The pilot advances the Trump-Vance Administration's broader deregulation agenda by removing unnecessary steps and improving government efficiency. Throughout implementation, RHS will assess pilot results and use them to inform permanent regulatory changes to Multifamily Housing Programs.

For more information about USDA Rural Development housing programs, visit www.rd.usda.gov.

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