DES MOINES — U.S. Representative Zach Nunn (IA-03) introduced bipartisan legislation to help very-low-income families repair and modernize their homes in rural areas. The Rural Housing Assistance Act, co-led by U.S. Representative Don Davis (NC-01), will modernize the U.S. Department of Agriculture (USDA) Section 504 Home Repair program to help even more families stay in their homes.
“As prices continue to skyrocket, repairing a home is extraordinarily expensive,” said Rep. Nunn. “Homes in rural communities are often older and need repair to keep them inhabitable. Unfortunately, in rural Iowa, more than 10% of the population lives in poverty – and can’t always afford to make necessary repairs or updates to a home. By doubling the loan assistance from USDA, we can give greater assistance to those who need it most.”
The USDA Section 504 Home Repair program provides loans to very-low-income homeowners to repair, improve, or modernize their homes or grants to elderly very-low-income homeowners to remove health and safety hazards.
“Making much-needed repairs and improvements to aging homes in rural communities can be too costly, especially for low-income homeowners and older adults on a fixed income,” said Rep. Davis. “By increasing the grant and loan amounts for the Sec. 504 Home Repair program, Congress can enhance the quality of life, remove health and safety hazards, and work to maintain the housing inventory in eastern North Carolina and rural America.”
Over the past several years, building materials and labor costs have increased exponentially. Under current law, the USDA Section 504 Home Repair program maximum grant amount is $10,000 and maximum loan amount is $40,000. Due to inflation, those loans and grants are often insufficient to cover the cost of necessary repairs to ensure homes are livable.
The bipartisan Rural Housing Assistance Act would modernize the USDA Section 504 Home Repair program by:
- Doubling the maximum grant a household can receive from $10,000 to $20,000
- Doubling the maximum loan a household can receive from $40,000 to $80,000
- Increasing the promissory note requirement to $15,000
The bipartisan Rural Housing Assistance Act is supported by the Housing Assistance Council, a nonprofit that supports affordable housing efforts throughout rural America.
Text of the bill can be found here.
###