Rounds Delivers Major Housing Affordability Wins for South Dakota

WASHINGTON - U.S. Senator Mike Rounds today secured the passage of key housing priorities for South Dakota as the Senate approved the 21^st Century Road to Housing Act. The legislation includes provisions authored by Rounds that deliver the first major update to the Rural Housing Service in more than a decade, streamline federal review processes that can delay housing development and provide communities greater flexibility to pursue locally driven housing solutions. The legislation now heads to the House of Representatives for final passage.

"Access to safe, affordable housing is essential to the strength of our communities and the future of South Dakota," said Rounds. "The 21st Century Road to Housing Act includes several of my bills that modernize rural housing programs and cut unnecessary red tape that slows housing development. These provisions will help expand our housing supply, especially in rural areas where the need is greatest. President Trump and Secretary Scott Turner have made it clear that increasing America's housing supply is a national priority. This legislation is an important step toward making housing more accessible and affordable for families across South Dakota and the country."

Rounds' legislation included in the 21^st Century Road to Housing Act:

Rural Housing Service Reform Act: This bill would improve federal rural housing programs and strengthen the supply of affordable housing in rural America by modernizing and strengthening several U.S. Department of Agriculture (USDA) rural housing programs. The Rural Housing Service Reform Act addresses longstanding challenges with maturing Section 515 properties, aligns income calculations with HUD standards, streamlines foreclosure and loan approval processes and invests in IT upgrades to improve efficiency. It would also ease access to home repair loans and expand eligibility for USDA loan guarantees to include properties with accessory dwellings and in-home daycares. By allowing rental assistance to be decoupled from expiring mortgages, the legislation helps preserve affordable housing for rural families who might otherwise face rent increases or displacement. Nationwide, this reform could help preserve housing stability for roughly 400,000 rural families, many of whom live in the Midwest and other rural regions.

Unlocking Housing Supply Through Streamlined and Modernized Reviews Act: The bill would modernize the National Environmental Policy Act (NEPA) review process for housing projects/services funded by the Department of Housing and Urban Development (HUD). The legislation reduces duplicative review requirements that delay projects without adding meaningful protections, allowing housing to be built faster and at lower cost.

Better Use of Intergovernmental and Local Development (BUILD) Housing Act: The bill would modernize the NEPA review process by increasing capacity sharing between HUD and state and local governments, aligning HUD's standards with other agencies through delegated housing reviews, and granting the agency greater flexibility by allowing it to designate certain housing assistance as "special project funds."

These bills were incorporated into the 21^st Century Road to Housing Act, sponsored by Senator Tim Scott (R-S.C.) and Senator Elizabeth Warren (D-Mass.). The comprehensive proposal would expand and preserve the housing supply by removing regulatory barriers, promoting innovative construction, addressing blight and supporting disaster recovery, while also improving housing affordability, expanding homeownership, reducing homelessness and increasing access for veterans. The bill advances accountability and oversight by promoting evidence-based policies, strengthening program integrity and improving coordination and transparency across federal housing programs to make efficient use of taxpayer dollars.

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