Streamlining Rural Housing Act of 2025
S. 2423, the Streamlining Rural Housing Act of 2025, would require the Department of Housing and Urban Development (HUD) and the Department of Agriculture (USDA) to work together to streamline housing projects funded by both agencies. Within 180 days of enactment, HUD and USDA must sign a memorandum of understanding (MOU) that among other things (1) examines how to use or designate categorical exclusions under the National Environmental Policy Act (NEPA) to simplify environmental reviews for these projects, (2) creates a process to designate a lead agency and to streamline the adoption of environmental impact statements (EIS) and environmental assessments (EA) prepared by the other agency, (3) maintains compliance with environmental regulations at 24 CFR Part 58 (as in effect January 1, 2025), and (4) assesses a potential joint physical inspection process for projects funded by both agencies. The bill also requires HUD and USDA to establish an advisory working group of diverse rural housing stakeholders within 180 days, and to report to Congress within one year with recommended legislative, regulatory, or administrative actions to improve efficiency and effectiveness of cross-agency rural housing projects while preserving resident safety and environmental protections.
Key Points
- 1Interagency memorandum of understanding: HUD and USDA must sign an MOU within 180 days to coordinate environmental reviews and project approvals for joint-funding housing projects, including consideration of NEPA categorical exclusions and joint lead-agency processes.
- 2Lead agency and streamlined reviews: The MOU should establish a process to designate a lead agency and to streamline the adoption of EISs and EAs approved by the other agency for projects funded by both agencies.
- 3Environmental compliance baseline: The MOU requires continued compliance with environmental regulations under 24 CFR Part 58 as of January 1, 2025.
- 4Joint inspections feasibility: The plan includes evaluating whether a joint physical inspection process for joint-funded projects is feasible.
- 5Advisory working group and reporting: An advisory group representing a broad set of rural housing stakeholders must be formed within 180 days, and HUD/USDA must submit a one-year report with recommendations to Congress that seek to improve efficiency without compromising safety or environmental standards.