Sunflower State News

A bipartisan group of U.S. senators has introduced legislation aimed at streamlining regulations for rural housing projects that receive federal funding. Senators Jerry Moran (R-Kan.), Pete Ricketts (R-Neb.), Jeanne Shaheen (D-N.H.), and Ruben Gallego (D-Ariz.) are sponsoring the bill, which would require the U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of Agriculture (USDA) to enter into a memorandum of understanding to align their housing standards.

Currently, rural housing developments that use programs such as HUD’s HOME Investment Partnerships Program or USDA’s 538 loan program must comply with different environmental reviews and inspection standards for each agency. The proposed legislation seeks to unify these requirements, with the goal of reducing costs and project timelines for developers.

“Across Kansas, the demand for rural housing has been on the rise, and it’s important that we find innovative solutions to address this issue,” said Senator Moran. “Streamlining rural housing regulations between HUD and USDA will simplify the regulatory process for developers, allowing them to more efficiently address the growing housing needs in Kansas and across the country.”

Senator Ricketts highlighted concerns about regulatory burdens: “Duplicative red tape and burdensome regulations create additional costs and deter much-needed investments in rural affordable housing,” he said. “The Streamlining Rural Housing Act is the first step to enhance efficiency and eliminate conflicting requirements that delay approvals so that we can build more housing in rural Nebraska. When I was Governor of Nebraska, our state created a rural workforce housing fund to help administer support to communities for rural housing needs, like construction costs, down payment assistance, and technical assistance.”

Senator Shaheen emphasized making federal rules work better for communities: “To address the shortage of quality, affordable housing in rural areas, federal regulations need to work for communities rather than against them,” she said. “I’m glad to join my colleagues in introducing bipartisan legislation that would improve and streamline environmental reviews and housing unit inspections so that we can build more homes and lower costs where it’s needed most.”

Senator Gallego addressed broader issues around affordable housing: “Americans are facing an affordable housing crisis. We need to build more housing and build it fast to bring down costs and get more people into homes,” he said. “Government should be part of the solution, but right now it’s part of the problem. By reducing red tape and streamlining redundant processes, this bipartisan bill will accelerate construction, lower costs, and get more desperately needed homes on the market.”

The Council for Affordable and Rural Housing also expressed support: “The Council for Affordable and Rural Housing (CARH) applauds the efforts of Senators Moran, Ricketts, Shaheen, and Gallego in introducing this important legislation which will help streamline program requirements at the Department of Housing and Urban Development (HUD) and the United States Department of Agriculture’s Rural Development (RD) programs,” CARH stated. “Many times when housing developers and owners are operating a property here is a need to have multiple sources of funding so that the property can cash flow and rents are at levels that low-income residents can afford. When this occurs, the agencies require separate if not identical inspections, somewhat negating the purpose of having the multiple layers of funding, thus increasing regulatory costs. By requiring one inspection, operating costs will be reduced or redirected toward services on properties. The approach envisioned in the bill has been supported by several different Administrations, with the goal of reducing regulatory burdens and improving the delivery of affordable housing programs.”

In addition to aligning standards through a memorandum between HUD and USDA, the bill would establish an advisory group made up of representatives from nonprofit organizations focused on rural affordable housing; state agencies; home builders; property management companies; multifamily property owners; and contract administrators involved with these types of projects.

The agencies would also be required to report recommendations back to Congress regarding legislative or administrative actions needed to further improve efficiency in federally funded combined-housing projects.