Rural Housing Service Reform Act of 2025

The Rural Housing Service Reform Act of 2025 is a broad package of reforms aimed at modernizing and expanding USDA’s Rural Housing Service programs. It seeks to streamline foreclosure procedures for multifamily properties owned or financed by USDA, strengthen protections and options for preserving affordable rural housing, and broaden opportunities for homeowners, tenants, and nonprofit/public entities to participate in and sustain rural housing. Key elements include new preservation and revitalization tools (with loan restructuring, rental assistance renewal, and restrictive use agreements), expanded and restructured loan/guarantee provisions (including longer terms for 502 loans and easier transfer of properties to nonprofits), modestly expanded Section 504 loan support for minor farm housing improvements, new rural development grants to build capacity for local housing initiatives, and reforms to the rural housing voucher program to adjust and improve affordability calculations and eligibility. It also emphasizes modernization of USDA’s technology and increased staff, with required annual reporting and a GAO study on technology needs. In short, the bill is designed to stabilize and extend the life of federally assisted rural housing stock, improve program administration, and provide additional tools and funding mechanisms to preserve affordable housing in rural areas, while giving targeted flexibility to owners, tenants, nonprofits, and local communities. Much of the new authority is contingent on annual appropriations and rulemaking, and several provisions require notices, plan submissions, and new reporting.