USDA Ditches DEI Rules in Rural Housing Funding Overhaul
Published Date: 4/2/2025
Notice
Summary
The USDA’s Rural Housing Service is updating its funding rules for two big housing programs by removing old priorities and diversity scoring rules to follow a new government order. This change affects anyone applying for these 2024 housing funds but don’t worry—if you already applied, you don’t have to apply again. The update keeps things fair and on track without changing the money available or deadlines.
Analyzed Economic Effects
2 provisions identified: 1 benefits, 0 costs, 1 mixed.
DEI and Priority Scoring Removed
If you apply for the USDA Rural Housing Service FY2024 multifamily funding opportunities named in this notice, references to the previous Administration’s key priorities and DEI (diversity, equity, and inclusion)–related scoring criteria have been removed from how applications are scored. This change was made to comply with the Executive Order issued on January 20, 2025, and applies to the listed FY2024 Notices of Funding Availability.
No Reapplication Needed
If you already submitted an application for these FY2024 Rural Housing Service funding opportunities, you do not need to submit a new application; the notice explicitly confirms prior applicants need not reapply. This applies to the FY2024 notices amended in this action.
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Key Dates
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Related Federal Register Documents
2026-06173 — Single Family Housing Guaranteed Loan Program-Income Producing Accessory Dwelling Unit (ADU) Provisions
The USDA’s Rural Housing Service wants to update its loan program so people can get loans to buy homes with one or more income-producing Accessory Dwelling Units (ADUs). This means homeowners can finance properties that include rental units or spaces for home-based work. If you’re interested, make sure to send your comments by June 1, 2026!
2026-05387 — Single Family Housing Guaranteed Loan Program
The USDA’s Rural Housing Service is updating its Single Family Housing Guaranteed Loan Program to let approved lenders use automated systems for making loans and getting guarantees after closing. This change helps speed up the loan process for folks buying homes in rural areas. The new rules kick in June 17, 2026, with full use starting September 28, 2028, making it easier and faster for lenders and homebuyers alike.
2026-11698 — 60-Day Notice of Proposed Information Collection: Direct Single Family Housing Loans and Grants HB-1-3550, and HB-2-3550; OMB Control No.: 0575-0172
The USDA’s Rural Housing Service wants to update the forms and info they collect for single-family home loans and grants to make things smoother and more modern. If you’re applying for these loans or grants, this could affect you. They’re asking for your thoughts by August 10, 2026, so don’t miss your chance to weigh in!
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Starting May 20, 2026, the USDA’s Rural Housing Service is updating insurance rules for Multi-Family Housing loans and grants. These changes make insurance coverage simpler and more in line with what affordable housing projects usually need, helping borrowers understand and meet requirements more easily. If you’re involved in rural multi-family housing projects, expect clearer insurance rules that could save time and hassle.
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