DES MOINES, IA — Today, Representatives Zach Nunn (IA-03) and Emanuel Cleaver (MO-05) introduced the bipartisan Rural Housing Service Reform Act to preserve affordable housing, improve program oversight, and expand access to safe homes for families, seniors, and workers across rural Iowa.
“More and more Iowans are watching the dream of homeownership slip out of reach,” said Rep. Nunn. “Too many programs meant to help are outdated, buried in red tape, and no longer work for the families they were created to serve. This bipartisan bill cuts through that bureaucracy to protect affordable housing, speed up repairs, and modernize USDA’s tools—so rural families, seniors, and workers can build their future right here in Iowa.”
More than 40 percent of Iowans spend over a third of their income on rent, while rural communities face worsening shortages as aging USDA-financed properties leave the program when mortgages mature. Outdated USDA systems, slow processing times, and limited oversight have only compounded these challenges—leaving families with fewer options and raising the risk of displacement.
“Every American deserves a safe, stable and affordable place to call home, regardless of their ZIP code,” said Rep. Cleaver. “Tragically, as communities struggle to build more housing and rural housing programs are unable to keep up with demand, residents in rural Missouri and beyond are struggling to stay afloat. Congress must take action to lower costs by cutting through unnecessary red tape and modernizing existing housing programs to maximize efficiency and draw more private investment—which is precisely what the bipartisan Rural Housing Service Reform Act will do. I’m proud to introduce this legislation with Congressman Nunn as we seek to make housing more affordable for hardworking families.”
“A safe, stable home is the foundation of a good life, but far too many of our neighbors are priced out of homeownership, said Lance Henning, Greater Des Moines Habitat for Humanity CEO. “The affordable housing crisis confronting our nation is felt in our small towns as much as it is in any big city. All efforts that help make homeownership more accessible are a step in the right direction.”
“As our nation continues to grapple with a housing shortage and affordability crisis, BPC Action commends Reps. Zach Nunn (R-IA) and Emanuel Cleaver, II (D-MO) for their bipartisan leadership in introducing the Rural Housing Service Reform Act,” said Michele Stockwell, president of Bipartisan Policy Center Action (BPC Action). “This legislation reforms and strengthens USDA’s housing programs so they can continue to meet the needs of rural households while expanding access to homeownership opportunities.”
“The Council for Affordable and Rural Housing (CARH) applauds the efforts of Representatives Zach Nunn and Emanuel Cleaver as they introduce legislation which would, if passed by Congress, be instrumental in preserving the affordable multifamily housing stock in many rural communities throughout the country,” said Colleen Fisher, Executive Director of the Council for Affordable and Rural Housing (CARH). “The legislation would provide owners with tools they currently do not have and at the same time assure residents that they will continue to have an affordable place to call home. Provisions in the bill will allow the Rural Housing Service to more effectively address the housing needs of both the providers and residents who live in this vital housing. Again, CARH appreciates the efforts of Representatives Nunn and Cleaver, and we look forward to working with both members on passage of this important rural housing legislation in both the House and Senate and then to the President for signature.
“The Rural Housing Service Reform Act is a testament to commonsense, bipartisan collaboration in Congress,” said David Lipsetz, President & CEO of the Housing Assistance Council. “This important legislation would modernize USDA’s flagship single-family housing programs, provide new tools to help preserve their critical stock of rural multifamily properties, and allow for sorely needed technology and staffing modernizations at USDA. We are so appreciative for the leadership of Rep. Nunn and Rep. Cleaver on these issues, and we applaud the deep commitment that all of the bill’s champions have shown to preserving and improving the rural housing programs at USDA.”
“NLIHC is proud to support the bipartisan Rural Housing Service Reform Act, which would make much-needed, common-sense improvements to USDA Rural Housing Service programs to ensure they better meet the affordable housing needs of rural communities,” said Renee Willis, president and CEO of the National Low Income Housing Coalition. “Rural areas have some of the most pressing – and most challenging – affordable housing needs, and I applaud Representatives Cleaver and Nunn for leading this bill.”
“Preserving existing rural rental housing for seniors and families, improving housing opportunities for Native Americans, updating policies and procedures on rural home repair funds, and investing USDA administrative resources and IT needs are vital improvements to the Housing Act and will pave the way for better housing in America’s small towns and farming communities,” said Bob Rapoza, Executive Secretary of the National Rural Housing Coalition. “Reps. Nunn and Cleaver deserve credit for crafting all into the Rural Housing Services Reform Act. We are pleased to support this legislation and thank Reps. Nunn and Cleaver for their leadership.”
“There’s nothing more important than where you call home. But for too many Americans in small towns and rural communities, rising costs are making it harder to make ends meet,” said Bill Sweeney, Senior Vice President, AARP Government Affairs. “The Rural Housing Service Reform Act is long-overdue legislation to address the housing crisis in rural America, where one in five residents is 65 or older. By preserving affordability, expanding access to credit, and modernizing USDA programs, this bill would ensure older Americans can age with dignity in the communities they call home.”
“The Local Initiatives Support Corporation is proud to support the Rural Housing Service Reform Act, since we’ve seen firsthand the hardship caused by losing affordable rental housing in rural communities. U.S. Department of Agriculture (USDA) financed properties are often the only affordable rental housing in small towns and house some of our nation’s most vulnerable residents,” said Nadia Villagràn, Vice President of the Rural Local Initiative Support Corporation. “This legislation will help preserve this critical housing stock while also improving USDA’s single-family housing repair and lending programs. We applaud Representatives Cleaver and Nunn for their commitment to rural America and leadership in improving USDA’s affordable housing programs.”
“USDA’s rural housing service programs have been a lifeline for millions of families in rural communities across the country. The Rural Housing Service Reform Act of 2025 modernizes existing housing programs, improves processing for home loan applications, and supports existing homeowners to address critical health and safety hazards,” said Chris Vincent, Vice President of Government Relations and Advocacy at Habitat for Humanity International. “We applaud Representatives Cleaver and Nunn for leading this bipartisan effort to strengthen rural housing programs and ensure that they continue to serve the people and communities that depend on them.”
“The Mortgage Bankers Association applauds the introduction of the Rural Housing Service Reform Act,” said Bill Killmer, Senior Vice President of Legislative Affairs, Mortgage Bankers Association. “This legislation takes meaningful steps to preserve and expand affordable housing options in rural communities, while also providing long-term stability for rental assistance. MBA supports policies that increase housing opportunities for rural families, and we look forward to working with Congress to see this important bill enacted — particularly its provisions that improve financing options for accessory dwelling units and loan assumptions.”
Key provisions of the Rural Housing Service Reform Act include:
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- The creation of a permanent program to preserve USDA-financed affordable rental housing by enabling nonprofits to acquire properties and keep rental assistance after loans mature
- Modernize USDA technology and staffing to speed up applications, improve oversight, and prevent fraud in the system
- Expand home repair grants and financing to help rural families maintain and grow their homes
- Support rural childcare by allowing loan guarantees for homes with in-home daycare facilities
- Require annual reporting and Government Accountability Office (GAO) audits to ensure transparency and protect taxpayer investments
The Rural Housing Service Reform Act has earned broad support from leading housing organizations, including the Greater Des Moines Habitat for Humanity, Habitat for Humanity International, National Rural Housing Coalition, National Low Income Housing Coalition, National Housing Law Project, Council for Affordable and Rural Housing, Bipartisan Policy Center Action, Local Initiatives Support Corporation, Housing Assistance Council, Enterprise Community Partners, Mortgage Bankers Association, Council of State Community Development Agencies, National Association of Counties, and AARP.
The Senate version of the Rural Housing Service Reform Act, led by Senators Tina Smith (D-MN) and Mike Rounds (R-SD), recently advanced through the Senate Banking Committee as part of a broader housing package. The overall package is sponsored by Banking Committee Chairman Tim Scott (R-SC) and Ranking Member Elizabeth Warren (D-MA).
Text of the bill can be found here.
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