Strategy and Investment in Rural Housing Preservation Act of 2025
This Senate bill would create a permanent Rural Housing Preservation and Revitalization Program under the Housing Act of 1949 to preserve and revitalize rural multifamily rental housing financed under sections 514, 515, or 516 (commonly farmworker and rural rental properties). It focuses on preventing loss of affordable housing by offering loan restructurings, extended rental assistance, and a framework for tenants to keep or obtain housing subsidies if a property’s loan matures or the project is otherwise in distress. The bill also expands access to rural housing vouchers for certain previously funded properties, sets funding levels (notably $200 million annually 2026-2030 for the program, plus a separate $50 million for USDA loan-processing technology), and creates a new advisory committee and a plan to preserve affordability. Overall, it aims to stabilize, modernize, and permanently commit federal support to rural rental housing and to reduce displacement of low‑income tenants and farmworkers. Key features include: mandatory notices to owners and tenants about upcoming loan maturities, options to restructure loans, and the potential to renew rental assistance for up to 20 years; a mechanism to “decouple” rental assistance from the loan if restructuring isn’t feasible; a requirement for restrictive use agreements to keep housing affordable; and a new process to transfer rental assistance between properties if a project loses its assistance. The bill also directs USDA Rural Housing Service to create a plan and advisory group to monitor affordability, and requires rulemaking within 180 days (advance notice) and interim final rules within a year.
Key Points
- 1Establishes a permanent Housing Preservation and Revitalization Program (for 514/515/516 rural multifamily projects) and mandates annual notices to owners and tenants about loan maturities, options to extend or decouple rental assistance, and protections for tenants’ ability to stay in affordable housing or move to vouchers.
- 2Expands loan restructuring tools and rental assistance: the Secretary may restructure loans (reducing or deferring interest, reamortizing debt, etc.) and offer to renew rental assistance contracts for up to 20 years, with eligibility tied to property upkeep and affordability standards; if a 20-year extension is offered, a restrictive use agreement also applies.
- 3Adds decoupling and transfer provisions: if a project’s loan cannot be restructured, the Secretary may renew rental assistance for 20 years regardless of loan status (with annual appropriations); tenants may receive continued or extended rental assistance, and there is a process to transfer rental assistance to other 514/515/516 projects or obtain a housing voucher; rents under renewal would be capped by budget-based needs or a standard from a federal affordability program.
- 4Expands voucher eligibility and payment rules: rural housing vouchers under Section 542 would cover households in 514/515/516 projects that prepaid, foreclosed, or matured after 2005 and are not currently receiving rental assistance under the new program.
- 5Funding and implementation: authorizes $200 million per year for 2026-2030 for the program; allocates up to $1 million per year for administrative expenses; appropriates $50 million in 2026 to improve USDA multifamily loan processing technology; requires a plan for preserving affordability within 6 months and an advisory committee to guide implementation.
- 6Plan and governance: creates a 16-member advisory committee with a mix of rural housing officials, for-profit and nonprofit developers, State housing finance agencies, tenants, farmworker representatives, community development financial institutions, and national nonprofits. The committee meets at least quarterly and helps improve portfolio estimates, review policies, monitor results, and report to Congress.