Rural Housing Service Reform Act of 2025
Sponsored By: Representative Rep. Nunn, Zachary [R-IA-3]
Introduced
Summary
This bill would focus on preserving and reviving affordable rural housing by expanding tenant protections, creating new preservation tools, and boosting capacity for rural communities.
Show full summary
- Families and renters: Would preserve rental assistance payments during multifamily foreclosure and allow renewal of rental assistance for restructured loans for up to 20 years. Expands voucher eligibility to households from prepaid, foreclosed, or matured 514/515/516 projects and caps voucher income eligibility at 80% of area median income.
- Nonprofit and public housing purchasers: Would create a new Section 515 transfer pathway that lets qualified nonprofits or public bodies acquire 515-financed properties without completing rehab at purchase if they commit to long-term use restrictions and to complete needed rehabilitation during ownership.
- Rural homeowners, providers, and communities: Would let the USDA refinance or modify Section 502 loans so total terms do not exceed 40 years and would relieve original borrowers of liability when an approved borrower assumes a guaranteed 502 loan. Establishes a Rural Community Development Initiative with grants up to $250,000 and allows matching waivers for persistently poor areas. The bill also authorizes discretionary staffing and IT funding and requires annual program reporting and a GAO technology review.
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Bill Overview
Analyzed Economic Effects
3 provisions identified: 3 benefits, 0 costs, 0 mixed.
More loan help for rural homeowners
If enacted, the max repair loan for low-income rural homeowners would rise from $7,500 to $15,000. At least 60% of these funds would be set aside for very low-income applicants. USDA could refinance or modify Section 502 home loans, as long as the new total term is no more than 40 years from the change. When an approved buyer assumes a guaranteed loan, the original borrower would be released from liability.
Stronger protections for rural renters
If enacted, USDA would create a program to keep 514/515/516 rental homes affordable, funded for FY2026–FY2030, with admin costs capped at $1 million a year. Owners who restructure loans could get rental assistance renewed for up to 20 years, subject to yearly funding, if homes meet safe and decent standards. Tenants would get early, plain-language notices about maturing loans, and rental help would continue during foreclosure. Low-income renters living in properties that prepaid, were foreclosed, or had loans mature after Sept. 30, 2005 could receive rural vouchers if they are still living there when the change happens. USDA would set a process within two years to adjust voucher amounts when incomes or rents change, and USDA-financed multifamily properties would follow the federal multifamily foreclosure process.
Rural housing grants and tech upgrades
If enacted, USDA could award Rural Community Development Initiative grants up to $250,000 to intermediaries that help local groups with housing and community projects. Grantees would usually need to match the grant dollar for dollar, though USDA could waive the match in persistently poor rural regions. Congress could also fund more staff and modern computer systems for Rural Housing Service programs for FY2026–FY2030. FY2026 technology funds would stay available for five years and must be used within that time.
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Sponsors & CoSponsors
Sponsor
Rep. Nunn, Zachary [R-IA-3]
IA • R
Cosponsors
Rep. Cleaver, Emanuel [D-MO-5]
MO • D
Sponsored 8/12/2025
McClain
MI • R
Sponsored 9/8/2025
Rep. Pettersen, Brittany [D-CO-7]
CO • D
Sponsored 9/8/2025
Stutzman
IN • R
Sponsored 9/15/2025
Riley (NY)
NY • D
Sponsored 9/15/2025
Rep. Mann, Tracey [R-KS-1]
KS • R
Sponsored 10/3/2025
Rep. Davis, Donald G. [D-NC-1]
NC • D
Sponsored 10/3/2025
Rep. Fischbach, Michelle [R-MN-7]
MN • R
Sponsored 10/17/2025
Rep. Vindman, Eugene Simon [D-VA-7]
VA • D
Sponsored 10/17/2025
Rep. Miller-Meeks, Mariannette [R-IA-1]
IA • R
Sponsored 12/18/2025
Rep. Neguse, Joe [D-CO-2]
CO • D
Sponsored 12/18/2025
Roll Call Votes
No roll call votes available for this bill.
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