Rural Housing Service Reform Act of 2025 | ChamberLight
Bills · HR 4957
IN COMMITTEE· 119TH CONGRESS
House BillHR 4957Housing and Community Development
Rural Housing Service Reform Act of 2025
INTRO AUG 12· LAST ACTION AUG 12
READING
23MIN
COSPONSORS
12BIPARTISAN
READER REACTIONS0 TOTAL
NO VOTES YET · BE THE FIRST
Introduced only
LEGISLATIVE PROGRESS
STEP 2 / 8
Introduced
In Committee
Reported
Passed House
Passed Senate
Conference
To President
Became Law
WHAT THE BILL DOES
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This bill matters because it addresses housing stability and affordability in rural areas, which often face unique challenges in attracting and retaining services and residents. By ensuring rental assistance continues even after foreclosure on certain properties, it prevents vulnerable families from suddenly losing their homes or financial support. Making the housing preservation program permanent provides a more stable framework for maintaining existing affordable housing stock and gives tenants crucial advance notice about potential changes to their living situations.
Improving the operational efficiency of the USDA's Rural Housing Service through staffing and IT upgrades could lead to faster processing of loans and grants, making it easier for eligible rural Americans to access housing assistance. Without this bill, many of these changes would not occur, potentially leaving tenants in precarious situations during foreclosures, delaying access to housing support, and allowing current housing stock to fall into disrepair without dedicated preservation efforts. It aims to modernize and strengthen critical programs that support homeownership and rental opportunities in rural communities.
KEY PROVISIONS
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PROVISION 01
Applies new foreclosure procedures to certain multifamily mortgages held by the Secretary of Agriculture, ensuring rental assistance contracts continue after a foreclosure.
This protects low-income tenants in rural rental properties from losing their housing assistance due to property foreclosure.
PROVISION 02
Authorizes money for the U.S. Department of Agriculture (USDA) for increased staffing and information technology (IT) upgrades for its Rural Housing Service programs from 2026-2030.
This aims to improve the efficiency and capacity of the USDA to process and manage housing loans and services for rural communities.
PROVISION 03
Permanently establishes a housing preservation and revitalization program for certain rural multifamily rental projects.
This provides a long-term framework to maintain and improve affordable rental housing in rural areas.
PROVISION 04
Requires the USDA to provide annual written notice to both property owners and tenants when a housing loan on a multifamily property is maturing.
This gives owners options for extending loans and helps tenants understand their rights and how to secure housing assistance before their housing situation potentially changes.
PROVISION 05
Mandates a study by the Secretary of Agriculture on rural housing loans for low- and moderate-income families, including how subsidies are recaptured.
This aims to provide data to Congress on the financial efficiency and impact of certain rural housing loan programs.
Referred to the Committee on Financial Services, and in addition to the Committee on Agriculture, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
This bill matters because it addresses housing stability and affordability in rural areas, which often face unique challenges in attracting and retaining services and residents. By ensuring rental assistance continues even after foreclosure on certain properties, it prevents vulnerable families from suddenly losing their homes or financial support. Making the housing preservation program permanent provides a more stable framework for maintaining existing affordable housing stock and gives tenants crucial advance notice about potential changes to their living situations.
Improving the operational efficiency of the USDA's Rural Housing Service through staffing and IT upgrades could lead to faster processing of loans and grants, making it easier for eligible rural Americans to access housing assistance. Without this bill, many of these changes would not occur, potentially leaving tenants in precarious situations during foreclosures, delaying access to housing support, and allowing current housing stock to fall into disrepair without dedicated preservation efforts. It aims to modernize and strengthen critical programs that support homeownership and rental opportunities in rural communities.
KEY PROVISIONS
AI-extracted
high
Applies new foreclosure procedures to certain multifamily mortgages held by the Secretary of Agriculture, ensuring rental assistance contracts continue after a foreclosure.
This protects low-income tenants in rural rental properties from losing their housing assistance due to property foreclosure.
high
Authorizes money for the U.S. Department of Agriculture (USDA) for increased staffing and information technology (IT) upgrades for its Rural Housing Service programs from 2026-2030.
This aims to improve the efficiency and capacity of the USDA to process and manage housing loans and services for rural communities.
high
Permanently establishes a housing preservation and revitalization program for certain rural multifamily rental projects.
This provides a long-term framework to maintain and improve affordable rental housing in rural areas.
med
Requires the USDA to provide annual written notice to both property owners and tenants when a housing loan on a multifamily property is maturing.
This gives owners options for extending loans and helps tenants understand their rights and how to secure housing assistance before their housing situation potentially changes.
low
Mandates a study by the Secretary of Agriculture on rural housing loans for low- and moderate-income families, including how subsidies are recaptured.
This aims to provide data to Congress on the financial efficiency and impact of certain rural housing loan programs.
Increased staffing needs and information technology upgrades for all Rural Housing Service programs
discretionary
Fiscal years 2026 through 2030
Such sums as may be necessary
Improvements to the technology of the Rural Housing Service for processing and managing housing loans
discretionary
Fiscal year 2026
GLOSSARY
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Secretary of Agriculture
The head of the U.S. Department of Agriculture, which oversees programs like the Rural Housing Service.
Multifamily mortgage foreclosure procedures
The legal steps taken when an owner of a building with multiple rental units cannot make their mortgage payments and the lender takes back the property.
Rental assistance contract
An agreement that provides financial aid to help low-income tenants afford rent in specific housing units.
Section 502 loans and guarantees
A type of loan or loan guarantee from the USDA's Rural Housing Service that helps low- and moderate-income individuals and families buy or build homes in rural areas.
Section 504 loans and grants
A program by the USDA that offers loans and grants to very low-income homeowners in rural areas to repair, improve, or modernize their homes or remove health and safety hazards.
Housing Preservation and Revitalization Program
A program designed to maintain and improve existing affordable rental housing projects in rural areas, often by restructuring loans or providing financial incentives.
Accessory Dwelling Unit (ADU)
ACTION TIMELINE
2 EVENTS
AUG 12, 25
Introduced in House
INTROREFERRAL
AUG 12, 25
Referred to the Committee on Financial Services, and in addition to the Committee on Agriculture, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
