119 S1260 IS: Rural Housing Service Reform Act of 2025
U.S. Senate
2025-04-02
text/xml
EN
Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
1.Short title; table of contents(a)This Act may be cited as the Rural Housing Service Reform Act of 2025
.(b)The table of contents of this Act is as follows:Sec. 1. Short title; table of contents.TITLE I—Streamlining and updatesSec. 101. Application of multifamily mortgage foreclosure procedures to multifamily mortgages held by the Secretary of Agriculture and preservation of the rental assistance contract upon foreclosure.Sec. 102. Study on rural housing loans for housing for low- and moderate-income families.Sec. 103. Authorization of appropriations for staffing and IT upgrades.Sec. 104. Funding for technical improvements.TITLE II—Rural housing preservation and revitalizationSec. 201. Permanent establishment of housing preservation and revitalization program.Sec. 202. Rental assistance contract authority.TITLE III—Native CDFI relendingSec. 301. Native CDFI relending program.TITLE IV—Section 504 loans and grantsSec. 401. Modifications to loans and grants for minor improvements to farm housing and buildings; income eligibility.TITLE V—Rural community development initiative grantsSec. 501. Rural community development initiative.TITLE VI—ReportsSec. 601. Annual report on rural housing programs.Sec. 602. GAO report on Rural Housing Service technology.TITLE VII—Rural housing voucher programSec. 701. Adjustment to rural development voucher amount.Sec. 702. Eligibility for rural housing vouchers.Sec. 703. Amount of voucher assistance.TITLE VIII—Transfers to nonprofit organizationsSec. 801. Transfer of multifamily rural housing projects.TITLE IX—Section 502 loans and guaranteesSec. 901. Extension of loan term.Sec. 902. Release of liability for section 502 guaranteed borrower upon assumption of original loan by new borrower.Sec. 903. Department of Agriculture loan restrictions.TITLE X—Accessory dwelling unitsSec. 1001. Loan guarantees.TITLE XI—Time frame for completing application reviewSec. 1101. Application review.<enum>I</enum><header>Streamlining and updates</header><section id="id0FF184752F51417EACD3C1C50D853C40"><enum>101.</enum><header>Application of multifamily mortgage foreclosure procedures to multifamily mortgages held by the Secretary of Agriculture and preservation of the rental assistance contract upon foreclosure</header><subsection commented="no" display-inline="no-display-inline" id="iddced4727c3d04a5ea7304994b2e2f6b5"><enum>(a)</enum><header display-inline="yes-display-inline">Multifamily mortgage procedures</header><text display-inline="yes-display-inline">Section 363(2) of the Multifamily Mortgage Foreclosure Act of 1981 (<external-xref legal-doc="usc" parsable-cite="usc/12/3702">12 U.S.C. 3702(2)</external-xref>) is amended—</text><paragraph id="idCFFA4775017B45E29C0D6C96852EF9F5"><enum>(1)</enum><text>in subparagraph (D), by striking <quote>and</quote> at the end;</text></paragraph><paragraph id="id5CC66BD9365B4AF4BCDF56CB9F5F28F4"><enum>(2)</enum><text>in subparagraph (E), by striking the period at the end and inserting <quote>; or</quote>; and</text></paragraph><paragraph id="id8B0C8D4016ED49818AE6733FBEAF1F74"><enum>(3)</enum><text>by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idC55CDECE857646FCAE4FC48EF8481EBD"><subparagraph id="id30A4F41779314E81BE08F0999AC14631"><enum>(F)</enum><text>section 514, 515, or 538 of the Housing Act of 1949 (<external-xref legal-doc="usc" parsable-cite="usc/42/1484">42 U.S.C. 1484</external-xref>, 1485, 1490p).</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id9bee2bc7903f4fb0ba083e03dfd8b318"><enum>(b)</enum><header>Preservation of contract</header><text>Section 521(d) of the Housing Act of 1949 (<external-xref legal-doc="usc" parsable-cite="usc/42/1490a">42 U.S.C. 1490a(d)</external-xref>) is amended by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id6A9CF98E6B194423A4314313221305B8"><paragraph commented="no" display-inline="no-display-inline" id="idc0e7a4cb2bed4108b00a08b71486bd9c" indent="up1"><enum>(3)</enum><text>Notwithstanding any other provision of law in managing and disposing of any multifamily property that is owned or has a mortgage held by the Secretary, and during the process of foreclosure on any property with a contract for rental assistance under this section—</text><subparagraph commented="no" display-inline="no-display-inline" id="id715e786e5b0445edbef503e432017729"><enum>(A)</enum><text display-inline="yes-display-inline">the Secretary shall maintain any rental assistance payments that are attached to any dwelling units in the property; and</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id52f15421cc74479e87d063120e994bf0"><enum>(B)</enum><text display-inline="yes-display-inline">the rental assistance contract may be used to provide further assistance to existing projects under 514, 515, or 516.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection></section><section id="idEB553280100647A98C3F08E4A7CD06A6"><enum>102.</enum><header>Study on rural housing loans for housing for low- and moderate-income families</header><text display-inline="no-display-inline">Not later than 6 months after the date of enactment of this Act, the Secretary of Agriculture shall conduct a study and submit to Congress a publicly available report on the loan program under section 521 of the Housing Act of 1949 (<external-xref legal-doc="usc" parsable-cite="usc/42/1490a">42 U.S.C. 1490a</external-xref>), including—</text><paragraph commented="no" display-inline="no-display-inline" id="id607707c33db64d8fa672a1b63e69f839"><enum>(1)</enum><text>the total amount provided by the Secretary in subsidies under such section 521 to borrowers with loans made pursuant to section 502 of such Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1472">42 U.S.C. 1472</external-xref>);</text></paragraph><paragraph id="idd1f636e9cf0443b3bc6f7b859dc78122"><enum>(2)</enum><text>how much of the subsidies described in paragraph (1) are being recaptured; and</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id88557d98546a41d2bf188cb189ae5eff"><enum>(3)</enum><text>the amount of time and costs associated with recapturing those subsidies.</text></paragraph></section><section id="H3C2C44E2DE3F4116B17DF22809D98120"><enum>103.</enum><header>Authorization of appropriations for staffing and IT upgrades</header><text display-inline="no-display-inline">There is authorized to be appropriated to the Secretary of Agriculture for each of fiscal years 2026 through 2030 such sums as may be necessary for increased staffing needs and information technology upgrades to support all Rural Housing Service programs.</text></section><section id="id474288E59087434D9ABAEBC495DF7EFF"><enum>104.</enum><header>Funding for technical improvements</header><subsection id="id9002FB5076F74DB0956B91DD747543D4"><enum>(a)</enum><header>Authorization of appropriations</header><text display-inline="yes-display-inline">There is authorized to be appropriated to the Secretary of Agriculture such sums as may be necessary for fiscal year 2026 for improvements to the technology of the Rural Housing Service of the Department of Agriculture used to process and manage housing loans.</text></subsection><subsection id="id8C95B4A66FDC4DDF87E58A0D469DECA3"><enum>(b)</enum><header>Availability</header><text>Amounts appropriated pursuant to subsection (a) shall remain available until the date that is 5 years after the date of the appropriation.</text></subsection><subsection id="idB9D8328AEB704DE58B7F1F54D21CA9E9"><enum>(c)</enum><header>Timeline</header><text display-inline="yes-display-inline">The Secretary of Agriculture shall make the improvements described in subsection (a) during the 5-year period beginning on the date on which amounts are appropriated under subsection (a).</text></subsection></section><enum>II</enum><header>Rural housing preservation and revitalization</header><section id="H4F1533B3601D4A5DAB75FA04B28F5C13"><enum>201.</enum><header>Permanent establishment of housing preservation and revitalization program</header><text display-inline="no-display-inline">Title V of the Housing Act of 1949 (<external-xref legal-doc="usc" parsable-cite="usc/42/1471">42 U.S.C. 1471 et seq.</external-xref>) is amended by adding at the end the following:</text><quoted-block style="OLC" id="H1E94B872049A4950844C5F4E61B6A39F"><section id="H065DF93592D04A19BBCAFAFEF80482CB"><enum>545.</enum><header>Housing preservation and revitalization program</header><subsection id="HC34755A6D8D14999947D447BEB5F4701"><enum>(a)</enum><header>Establishment</header><text>The Secretary shall carry out a program under this section for the preservation and revitalization of multifamily rental housing projects financed under section 514, 515, or 516.</text></subsection><subsection id="H606656D846F949639DC0E0580170918E"><enum>(b)</enum><header>Notice of maturing loans</header><paragraph id="H0DEC167305304414A237663C5F662CFE"><enum>(1)</enum><header>To owners</header><text>On an annual basis, the Secretary shall provide written notice to each owner of a property financed under section 514, 515, or 516 that will mature within the 4-year period beginning upon the provision of the notice, setting forth the options and financial incentives that are available to facilitate the extension of the loan term or the option to decouple a rental assistance contract pursuant to subsection (f).</text></paragraph><paragraph id="H84FA0D7EA9F7488DB5F7E0D5CAFFB08C"><enum>(2)</enum><header>To tenants</header><subparagraph id="HEE058683EDB242F68FF2F16F76E5EC20"><enum>(A)</enum><header>In general</header><text>On an annual basis, for each property financed under section 514, 515, or 516, not later than the date that is 2 years before the date that the loan will mature, the Secretary shall provide written notice to each household residing in the property that informs them of—</text><clause commented="no" display-inline="no-display-inline" id="idb147a582f794471e83d82e700b005268"><enum>(i)</enum><text display-inline="yes-display-inline">the date of the loan maturity;</text></clause><clause commented="no" display-inline="no-display-inline" id="idb6a6ad9edde94ce7ba4190bac31dc54a"><enum>(ii)</enum><text display-inline="yes-display-inline">the possible actions that may happen with respect to the property upon that maturity; and</text></clause><clause commented="no" display-inline="no-display-inline" id="id0131055e171d4eaaa207127fd9bbee9f"><enum>(iii)</enum><text display-inline="yes-display-inline">how to protect their right to reside in federally assisted housing, or how to secure housing voucher, after that maturity.</text></clause></subparagraph><subparagraph id="H817BE57C733C4C19B34481622C85F091"><enum>(B)</enum><header>Language</header><text>Notice under this paragraph shall be provided in plain English and shall be translated to other languages in the case of any property located in an area in which a significant number of residents speak such other languages.</text></subparagraph></paragraph></subsection><subsection id="H9F8DE26846964257AA8B4DF3AE63EEDF"><enum>(c)</enum><header>Loan restructuring</header><text>Under the program under this section, in any circumstance in which the Secretary proposes a restructuring to an owner or an owner proposes a restructuring to the Secretary, the Secretary may restructure such existing housing loans, as the Secretary considers appropriate, for the purpose of ensuring that those projects have sufficient resources to preserve the projects to provide safe and affordable housing for low-income residents and farm laborers, by—</text><paragraph id="HAFC933574BE84021B2A779D9ABB78481"><enum>(1)</enum><text>reducing or eliminating interest;</text></paragraph><paragraph id="H850A6BED645F4514AE7955614CE816A7"><enum>(2)</enum><text>deferring loan payments;</text></paragraph><paragraph id="H029C90DD4B0447D5A8A9E65ED07E3715"><enum>(3)</enum><text>subordinating, reducing, or reamortizing loan debt; </text></paragraph><paragraph id="H01DF3168701544B581B0BA20E2A9DAEB"><enum>(4)</enum><text>providing other financial assistance, including advances, payments, and incentives (including the ability of owners to obtain reasonable returns on investment) required by the Secretary; and</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id249a650a0f2340f1a2b91059d54737e5"><enum>(5)</enum><text>permanently removing a portion of the housing units from income restrictions when sustained vacancies have occurred.</text></paragraph></subsection><subsection id="H39C7C36AFCD04E0AA7199CBC3358FFA8"><enum>(d)</enum><header>Renewal of rental assistance</header><paragraph id="id7E43A755FCC3419B9B1592B3F206C100"><enum>(1)</enum><header>In general</header><text>When the Secretary proposes to restructure a loan or agrees to the proposal of an owner to restructure a loan pursuant to subsection (c), the Secretary shall offer to renew the rental assistance contract under section 521(a)(2) for a term that is the shorter of 20 years and the term of the restructured loan, subject to annual appropriations, provided that the owner agrees to bring the property up to such standards that will ensure maintenance of the property as decent, safe, and sanitary housing for the full term of the rental assistance contract.</text></paragraph><paragraph id="id5098c964d0474974be8a328a6842ae44"><enum>(2)</enum><header>Additional rental assistance</header><text>With respect to a project described in paragraph (1), if rental assistance is not available for all households in the project for which the loan is being restructured pursuant to subsection (c), the Secretary may extend such additional rental assistance to unassisted households at that project as is necessary to make the project safe and affordable to low-income households. </text></paragraph></subsection><subsection id="H056D7624E6824EADA74EFA3756B4E68B"><enum>(e)</enum><header>Restrictive use agreements</header><paragraph id="H849464363C244449BA22210D54C706C9"><enum>(1)</enum><header>Requirement</header><text>As part of the preservation and revitalization agreement for a project, the Secretary shall obtain a restrictive use agreement that is recorded and obligates the owner to operate the project in accordance with this title.</text></paragraph><paragraph id="HE1ACE512A8E442259C42024D7219BC14"><enum>(2)</enum><header>Term</header><subparagraph id="H2109B98B8D594E899A02D5EEF8E7A972"><enum>(A)</enum><header>No extension of rental assistance contract</header><text>Except when the Secretary enters into a 20-year extension of the rental assistance contract for a project, the term of the restrictive use agreement for the project shall be consistent with the term of the restructured loan for the project.</text></subparagraph><subparagraph id="H2934F6AA1CF649DF8A96D46F130C79B5"><enum>(B)</enum><header>Extension of rental assistance contract</header><text>If the Secretary enters into a 20-year extension of the rental assistance contract for a project, the term of the restrictive use agreement for the project shall be for the longer of—</text><clause commented="no" display-inline="no-display-inline" id="id89f6446e959a49fe8da6a8020e12508e"><enum>(i)</enum><text display-inline="yes-display-inline">20 years; or</text></clause><clause commented="no" display-inline="no-display-inline" id="id2803be405e1f4aa5b2b89783edc09feb"><enum>(ii)</enum><text>the remaining term of the loan for that project.</text></clause></subparagraph><subparagraph id="H88DBA2C8962047918D49D4F09B153E82"><enum>(C)</enum><header>Termination</header><text>The Secretary may terminate the 20-year use restrictive use agreement for a project before the end of the term of the agreement if the 20-year rental assistance contract for the project with the owner is terminated at any time for reasons outside the control of the owner.</text></subparagraph></paragraph></subsection><subsection id="H435DD8406052409993EE1C7EFAE4BFE0"><enum>(f)</enum><header>Decoupling of rental assistance</header><paragraph id="H909965965351425FAEE19D194020101A"><enum>(1)</enum><header>Renewal of rental assistance contract</header><text>If the Secretary determines that a loan maturing during the 4-year period beginning upon the provision of the notice required under subsection (b)(1) for a project cannot reasonably be restructured in accordance with subsection (c) because it is not financially feasible or the owner does not agree with the proposed restructuring, and the project was operating with rental assistance under section 521 and the recipient is a borrower under section 514 or 515, the Secretary may renew the rental assistance contract, notwithstanding any requirement under section 521 that the recipient be a current borrower under section 514 or 515, for a term of 20 years, subject to annual appropriations.</text></paragraph><paragraph id="idA1EED012C2694533B44FFD25255696F7"><enum>(2)</enum><header>Additional rental assistance</header><text>With respect to a project described in paragraph (1), if rental assistance is not available for all households in the project for which the loan is being restructured pursuant to subsection (c), the Secretary may extend such additional rental assistance to unassisted households at that project as is necessary to make the project safe and affordable to low-income households. </text></paragraph><paragraph id="H1086B2E8E2514331BDA88A083C8F9897"><enum>(3)</enum><header>Rents</header><subparagraph id="idD2CB135DA81E4C5A8E27070386287275"><enum>(A)</enum><header>In general</header><text>Any agreement to extend the term of the rental assistance contract under section 521 for a project shall obligate the owner to continue to maintain the project as decent, safe, and sanitary housing and to operate the development as affordable housing in a manner that meets the goals of this title.</text></subparagraph><subparagraph id="id00389CC3E5CD48BA9F321BE074BD63EF"><enum>(B)</enum><header>Rent amounts</header><text>Subject to subparagraph (C), in setting rents, the Secretary—</text><clause id="id8AEB9CCA4B064D81A4ACA4D2DDA55F09"><enum>(i)</enum><text>shall determine the maximum initial rent based on current fair market rents established under section 8 of the United States Housing Act of 1937 (<external-xref legal-doc="usc" parsable-cite="usc/42/1437f">42 U.S.C. 1437f</external-xref>); and</text></clause><clause id="id2725869FD02C413596AAEB1CC3B1DE62"><enum>(ii)</enum><text>may annually adjust the rent determined under clause (i) by the operating cost adjustment factor as provided under section 524 of the Multifamily Assisted Housing Reform and Affordability Act of 1997 (<external-xref legal-doc="usc" parsable-cite="usc/42/1437f">42 U.S.C. 1437f</external-xref> note).</text></clause></subparagraph><subparagraph id="id2A055BDC3E7C4C39A821D314BB159FDC"><enum>(C)</enum><header>Higher rent</header><clause id="idFF0F57E76D97455687E9ED8F4F5BF3F0"><enum>(i)</enum><header>In general</header><text>Subparagraph (B) shall not apply if the Secretary determines that the budget-based needs of a project require a higher rent than the rent described in subparagraph (B).</text></clause><clause id="id89FB72E455664E5E8326C78DC8BAD902"><enum>(ii)</enum><header>Rent</header><text>If the Secretary makes a positive determination under clause (i), the Secretary may approve a budget-based rent level for the project. </text></clause></subparagraph></paragraph><paragraph id="id213e91263e85480196d30ad054b6963c"><enum>(4)</enum><header>Conditions for approval</header><subparagraph id="id9ED6462EC30E45FAAC75A4AD4BDE4BCC"><enum>(A)</enum><header>Plan</header><text>Before the approval of a rental assistance contract authorized under this section, the Secretary shall require, through an annual notice in the Federal Register, the owner to submit to the Secretary a plan that identifies financing sources and a timetable for renovations and improvements determined to be necessary by the Secretary to maintain and preserve the project. </text></subparagraph><subparagraph id="idAC206129B48B4E5DAAAED60EF57313FD"><enum>(B)</enum><header>Automatic approval</header><text>If a plan submitted under subparagraph (A) is not acted upon by the Secretary within 30 days of the submission, the rental assistance contract is automatically approved for not more than a 1-year period. </text></subparagraph></paragraph></subsection><subsection id="H8533DA2FFBE244EEA505314D3CBD8E8C"><enum>(g)</enum><header>Multifamily housing transfer technical assistance</header><text>Under the program under this section, the Secretary may provide grants to qualified nonprofit organizations and public housing agencies to provide technical assistance, including financial and legal services, to borrowers under loans under this title for multifamily housing to facilitate the acquisition or preservation of such multifamily housing properties in areas where the Secretary determines there is a risk of loss of affordable housing.</text></subsection><subsection id="H265824F112C44200B72E8A2F487B1A4C"><enum>(h)</enum><header>Administrative expenses</header><text>Of any amounts made available for the program under this section for any fiscal year, the Secretary may use not more than $1,000,000 for administrative expenses for carrying out such program.</text></subsection><subsection id="H8A558668E940436A8B7A08A0F9FDC57B"><enum>(i)</enum><header>Authorization of appropriations</header><text>There is authorized to be appropriated for the program under this section $200,000,000 for each of fiscal years 2026 through 2030.</text></subsection><subsection id="id8d692589150446179a75bf2422873b94"><enum>(j)</enum><header>Rulemaking</header><paragraph id="id9CCA6A18209B446582BD4AFE31705289"><enum>(1)</enum><header>In general</header><text>Not later than 180 days after the date of enactment of the <short-title>Rural Housing Service Reform Act of 2025</short-title>, the Secretary shall—</text><subparagraph id="id96A542D44C24429A8B44A52E6F85846A"><enum>(A)</enum><text>publish an advance notice of proposed rulemaking; and </text></subparagraph><subparagraph id="idC309801F6E1649AE9DCE8960B98B4253"><enum>(B)</enum><text>consult with appropriate stakeholders. </text></subparagraph></paragraph><paragraph id="idD0878BB40353419FBEBA474195D3411A"><enum>(2)</enum><header>Interim final rule</header><text>Not later than 1 year after the date of enactment of the <short-title>Rural Housing Service Reform Act of 2025</short-title>, the Secretary shall publish an interim final rule to carry out this section.</text></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></section><section id="HA62C52F257534EA7882B5423AD14A0BE"><enum>202.</enum><header>Rental assistance contract authority</header><text display-inline="no-display-inline">Section 521(d) of the Housing Act of 1949 (<external-xref legal-doc="usc" parsable-cite="usc/42/1490a">42 U.S.C. 1490a(d)</external-xref>), as amended by section 101(b), is amended—</text><paragraph id="HE11738D81A1B466493AEBEA28DB1C33A"><enum>(1)</enum><text>in paragraph (1)—</text><subparagraph id="id66961219218F4B32A67ABF8366E077F9"><enum>(A)</enum><text>by redesignating subparagraphs (B) and (C) as subparagraphs (C) and (D), respectively;</text></subparagraph><subparagraph id="id2FF8E2823A22440FAECE306A096100BE"><enum>(B)</enum><text>by inserting after subparagraph (A) the following:</text><quoted-block style="OLC" id="H0A2CE606F4754E08B4553ED0BD0B4C6F"><subparagraph id="HA0B6D8DAE00D45A5972A87B52D67E57A" indent="up1"><enum>(B)</enum><text>upon request of an owner of a project financed under section 514 or 515, the Secretary is authorized to enter into renewal of such agreements for a period of 20 years or the term of the loan, whichever is shorter, subject to amounts made available in appropriations Acts;</text></subparagraph><after-quoted-block>;</after-quoted-block></quoted-block></subparagraph><subparagraph commented="no" id="id285C3BCB493A47FF9414095C97B523B9"><enum>(C)</enum><text>in subparagraph (C), as so redesignated, by striking <quote>subparagraph (A)</quote> and inserting <quote>subparagraphs (A) and (B)</quote>; and</text></subparagraph><subparagraph commented="no" id="id6AC471783FE44882B41804F61A9A41C4"><enum>(D)</enum><text>in subparagraph (D), as so redesignated, by striking <quote>subparagraphs (A) and (B)</quote> and inserting <quote>subparagraphs (A), (B), and (C)</quote>; </text></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id1b5e776649b24abf92fcb1488d23a8b1"><enum>(2)</enum><text display-inline="yes-display-inline">in paragraph (2), by striking <quote>shall</quote> and inserting <quote>may</quote>; and</text></paragraph><paragraph id="HE23978AC3D064FF087263240C84BFA59"><enum>(3)</enum><text>by adding at the end the following:</text><quoted-block style="OLC" id="HFE7485C264AA43FCB14CFC98A0FB2E73"><paragraph id="HD278F2A70BD941B9A65584CE4A7E464C" indent="up1"><enum>(4)</enum><text>In the case of any rental assistance contract authority that becomes available because of the termination of assistance on behalf of an assisted family—</text><subparagraph id="H90A295094402472DAB8DEDEFFFFF8798"><enum>(A)</enum><text>at the option of the owner of the rental project, the Secretary shall provide the owner a period of not more than 6 months before unused assistance is made available pursuant to subparagraph (B) during which the owner may use such assistance authority to provide assistance on behalf of an eligible unassisted family that—</text><clause id="H1FD619D7D2BB4DD78EF10DF495D3FBD9"><enum>(i)</enum><text>is residing in the same rental project in which the assisted family resided before the termination; or</text></clause><clause id="HCBB88071C25A4160BB777C8959DCC79B"><enum>(ii)</enum><text>newly occupies a dwelling unit in the rental project during that 6-month period; and</text></clause></subparagraph><subparagraph id="HF9943ED9EE394A119D9FF4602E280691"><enum>(B)</enum><text>except for assistance used as provided in subparagraph (A), the Secretary shall use such remaining authority to provide assistance on behalf of eligible families residing in other rental projects originally financed under section 514, 515, or 516.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></section><enum>III</enum><header>Native CDFI relending</header><section id="id3932F3D55AEE4B94AF5D17D62AD1E9F6"><enum>301.</enum><header>Native CDFI relending program</header><text display-inline="no-display-inline">Section 502 of the Housing Act of 1949 (<external-xref legal-doc="usc" parsable-cite="usc/42/1472">42 U.S.C. 1472</external-xref>) is amended by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id8E547AFED1EF46FE81FC935B38B453BB"><subsection id="id4CC625B0FF564A63A92DE37EC7E02574"><enum>(j)</enum><header>Set aside for native community development financial institutions</header><paragraph id="idFFB22DB2EF214CE79F5F0DDD6EC5B9F1"><enum>(1)</enum><header>Definitions</header><text>In this subsection—</text><subparagraph id="id2052AEADCD20477584226A9A3B2CCB41"><enum>(A)</enum><text>the term <term>Alaska Native</term> has the meaning given the term <term>Native</term> in section 3(b) of the Alaska Native Claims Settlement Act (<external-xref legal-doc="usc" parsable-cite="usc/43/1602">43 U.S.C. 1602(b)</external-xref>);</text></subparagraph><subparagraph id="idDABA1DFF0DE64384B3D631DB28C277AA"><enum>(B)</enum><text> the term <term>appropriate congressional committees</term> means—</text><clause id="idD8C25290B6E54E2DA84275CB81A1D6CC"><enum>(i)</enum><text>the Committee on Agriculture of the Senate;</text></clause><clause id="id93DD9AAE70B840F9ABD76F0504B7A8C7"><enum>(ii)</enum><text>the Committee on Indian Affairs of the Senate;</text></clause><clause id="id435E8A3B21C0477D96D9DD4D77698639"><enum>(iii)</enum><text>the Committee on Banking, Housing, and Urban Affairs of the Senate;</text></clause><clause id="idE931C244F72243B3BA38446F822F4E60"><enum>(iv)</enum><text>the Committee on Agriculture of the House of Representatives; </text></clause><clause id="idCEBFAF39DE7A4BB183B52A2145260F7F"><enum>(v)</enum><text>the Committee on Natural Resources of the House of Representatives; and</text></clause><clause id="id63DF78C8CBE2429FB0F7EFCFA1092395"><enum>(vi)</enum><text>the Committee on Financial Services of the House of Representatives;</text></clause></subparagraph><subparagraph id="idAA48C84A137747CEB1871F2308D8B793"><enum>(C)</enum><text>the term <term>community development financial institution</term> has the meaning given the term in section 103 of the Community Development Banking and Financial Institutions Act of 1994 (<external-xref legal-doc="usc" parsable-cite="usc/12/4702">12 U.S.C. 4702</external-xref>); </text></subparagraph><subparagraph id="idED3D9AF81ED14D01B0FD5D7CF5324D06"><enum>(D)</enum><text>the term <term>Indian Tribe</term> has the meaning given the term <term>Indian tribe</term> in section 4 of the Native American Housing Assistance and Self-Determination Act of 1996 (<external-xref legal-doc="usc" parsable-cite="usc/25/4103">25 U.S.C. 4103</external-xref>); </text></subparagraph><subparagraph id="idE5F7DF8C33374D08923F2657BAD1DFBF"><enum>(E)</enum><text>the term <term>Native community development financial institution</term> means an entity—</text><clause id="id3184F1300F364869BAD4FF750648A3ED"><enum>(i)</enum><text>that has been certified as a community development financial institution by the Secretary of the Treasury; </text></clause><clause id="idDE69ED54643743DDBC0029DC8305378A"><enum>(ii)</enum><text>that is not less than 51 percent owned or controlled by members of Indian Tribes, Alaska Native communities, or Native Hawaiian communities; and</text></clause><clause id="id007A595CDCAD45BEB9F87D5981A8DD49"><enum>(iii)</enum><text>for which not less than 51 percent of the activities of the entity serve Indian Tribes, Alaska Native communities, or Native Hawaiian communities; </text></clause></subparagraph><subparagraph id="id8f1e55fc86a34a7b85275ced674e9b8a"><enum>(F)</enum><text>the term <term>Native Hawaiian</term> has the meaning given the term in section 801 of the Native American Housing Assistance and Self-Determination Act of 1996 (<external-xref legal-doc="usc" parsable-cite="usc/25/4221">25 U.S.C. 4221</external-xref>); and</text></subparagraph><subparagraph id="idA86C83BC68B643218139D384DB85E290"><enum>(G)</enum><text>the term <term>priority Tribal land</term> means—</text><clause id="idf15ebc1adf044ac8970b9e743a966016"><enum>(i)</enum><text>any land located within the boundaries of—</text><subclause id="id104198c13ebe46dbbcda3067a7fff387"><enum>(I)</enum><text>an Indian reservation, pueblo, or rancheria; or</text></subclause><subclause id="id3e9ed50bbfe0423c9d4ac31720a4c047"><enum>(II)</enum><text>a former reservation within Oklahoma;</text></subclause></clause><clause id="id6aafb504331e4c89bbcc8d8a431d7963"><enum>(ii)</enum><text>any land not located within the boundaries of an Indian reservation, pueblo, or rancheria, the title to which is held—</text><subclause id="id157dbc262231493b81062981ee6693b4"><enum>(I)</enum><text>in trust by the United States for the benefit of an Indian Tribe or an individual Indian;</text></subclause><subclause id="id30cf18b5de86494186ad68ed62827aee"><enum>(II)</enum><text>by an Indian Tribe or an individual Indian, subject to restriction against alienation under laws of the United States; or</text></subclause><subclause id="id70f478215c0d46e9b9c1f8ccfcd53a1c"><enum>(III)</enum><text>by a dependent Indian community;</text></subclause></clause><clause id="id1477390fced745f48a857970b4d6990c"><enum>(iii)</enum><text>any land located within a region established pursuant to section 7(a) of the Alaska Native Claims Settlement Act (<external-xref legal-doc="usc" parsable-cite="usc/43/1606">43 U.S.C. 1606(a)</external-xref>);</text></clause><clause id="id5888c6cd29534b9588e45d793aa2dc5f"><enum>(iv)</enum><text>Hawaiian Home Lands, as defined in section 801 of the Native American Housing Assistance and Self-Determination Act of 1996 (<external-xref legal-doc="usc" parsable-cite="usc/25/4221">25 U.S.C. 4221</external-xref>); or</text></clause><clause id="idbd0759d973884f569d0aec06f224c4d5"><enum>(v)</enum><text>those areas or communities designated by the Assistant Secretary of Indian Affairs of the Department of the Interior that are near, adjacent, or contiguous to reservations where financial assistance and social service programs are provided to Indians because of their status as Indians.</text></clause></subparagraph></paragraph><paragraph id="id77CE5BC88E794FE7AB409D11C9709B15"><enum>(2)</enum><header>Purpose</header><text>The purpose of this subsection is to—</text><subparagraph id="id1a4a399170824d5b8af9f778bb06cab1"><enum>(A)</enum><text>increase homeownership opportunities for Indian Tribes, Alaska Native Communities, and Native Hawaiian communities in rural areas; and</text></subparagraph><subparagraph id="id03CB6B4CE2DC4C65A285B6BAAD12B5FD"><enum>(B)</enum><text>provide capital to Native community development financial institutions to increase the number of mortgage transactions carried out by those institutions.</text></subparagraph></paragraph><paragraph id="id89B85ECA93CD492CAE825C36DEF634A7"><enum>(3)</enum><header>Set aside for Native CDFIs</header><text>Of amounts appropriated to make direct loans under this section for each fiscal year, the Secretary may use not more than $50,000,000 to make direct loans to Native community development financial institutions in accordance with this subsection.</text></paragraph><paragraph id="idF1904300436D4C59AB79A03BD62735EC"><enum>(4)</enum><header>Application requirements</header><text>A Native community development financial institution desiring a loan under this subsection shall demonstrate that the institution—</text><subparagraph id="id9C107B8E6B9E4493BA6734EBA0918B36"><enum>(A)</enum><text>can provide the non-Federal cost share required under paragraph (6); and</text></subparagraph><subparagraph id="id1821CEE6E1EF43588C0007255EEC5701"><enum>(B)</enum><text>is able to originate and service loans for single family homes. </text></subparagraph></paragraph><paragraph id="id6CDE385E187A48E38F6B3D8BC4411014"><enum>(5)</enum><header>Lending requirements</header><text>A Native community development financial institution that receives a loan pursuant to this subsection shall—</text><subparagraph id="idCD9323D3CB444F208B98DFD3231F2E87"><enum>(A)</enum><text>use those amounts to make loans to borrowers—</text><clause id="id958780A00CF1427AA3CFEB056DE84364"><enum>(i)</enum><text>who otherwise meet the requirements for a loan under this section; and</text></clause><clause id="id45EEDC83AE714C7C880D8B06927E4BC7"><enum>(ii)</enum><text>who—</text><subclause id="id30360D1F553B44388F7831387DC0ECCF"><enum>(I)</enum><text>are members of an Indian Tribe, an Alaska Native community, or a Native Hawaiian community; or </text></subclause><subclause id="id58143703FEA24168BAB8097485ADFD8F"><enum>(II)</enum><text>maintain a household in which not less than 1 member is a member of an Indian Tribe, an Alaska Native community, or a Native Hawaiian community; and</text></subclause></clause></subparagraph><subparagraph id="id5FD7FFA8CD5F4B7DAB5AAC269D1754FD"><enum>(B)</enum><text>in making loans under subparagraph (A), give priority to borrowers described in that subparagraph who are residing on priority Tribal land.</text></subparagraph></paragraph><paragraph id="id230B2461440245088439708B9B085B93"><enum>(6)</enum><header>Non-Federal cost share</header><subparagraph id="idC976AD900CDA4FFBBBF93E92B3D2F4B7"><enum>(A)</enum><header>In general</header><text>A Native community development financial institution that receives a loan under this section shall be required to match not less than 20 percent of the amount received.</text></subparagraph><subparagraph id="id66A93E1BD3E74166B59602BFF42CDB3C"><enum>(B)</enum><header>Waiver</header><text>In the case of a loan for which amounts are used to make loans to borrowers described in paragraph (5)(B), the Secretary shall waive the non-Federal cost share requirement described in subparagraph (A) with respect to those loan amounts.</text></subparagraph></paragraph><paragraph id="id68DEC3C1C4CA422F84A675C3F2F486D2"><enum>(7)</enum><header>Reporting</header><subparagraph id="idE3F43BD6032B4406AD569BFB4B5E4FBF"><enum>(A)</enum><header>Annual report by Native CDFIs</header><text>Each Native community development financial institution that receives a loan pursuant to this subsection shall submit an annual report to the Secretary on the lending activities of the institution using the loan amounts, which shall include—</text><clause id="id134234d0a9254738b6c083a08894fff0"><enum>(i)</enum><text>a description of the outreach efforts of the institution in local communities to identify eligible borrowers;</text></clause><clause id="idAC15FFAA663848439D205118A066A162"><enum>(ii)</enum><text>a description of how the institution leveraged additional capital to reach prospective borrowers;</text></clause><clause id="id77F01B5F8F6249808374F630E3321BC2"><enum>(iii)</enum><text>the number of loan applications received, approved, and deployed;</text></clause><clause id="id9F9BEF31CD0D46039B0C63DB71186CCF"><enum>(iv)</enum><text>the average loan amount;</text></clause><clause id="id9574581032254872AB777053590C98D5"><enum>(v)</enum><text>the number of finalized loans that were made on Tribal trust lands and not on Tribal trust lands; and</text></clause><clause id="id6CFD56B8361C4F51B4B9FB26A8BDA9F4"><enum>(vi)</enum><text>the number of finalized loans that were made on priority Tribal land and not priority Tribal land.</text></clause></subparagraph><subparagraph id="id8FD36E8B416943C7BD492A6CD9F8535F"><enum>(B)</enum><header>Annual report to Congress</header><text>Not later than 1 year after the date of enactment of this subsection, and every year thereafter, the Secretary shall submit to the appropriate congressional communities a report that includes—</text><clause id="idE135F41CDE134D26955F7FAA4572885C"><enum>(i)</enum><text>a list of loans made to Native community development financial institutions pursuant to this subsection, including the name of the institution and the loan amount;</text></clause><clause id="idF7920B19CD374030B09EBA822092C168"><enum>(ii)</enum><text>the percentage of loans made under this section to members of Indian Tribes, Alaska Native communities, and Native Hawaiian communities, respectively, including a breakdown of loans made to households residing on and not on Tribal trust lands; and</text></clause><clause id="idC24535755B234C57AFDA23D2E3C5F793"><enum>(iii)</enum><text>the average loan amount made by Native community development financial institutions pursuant to this subsection. </text></clause></subparagraph><subparagraph id="id4E463328346945EFA0E3FF6A3C54582C"><enum>(C)</enum><header>Evaluation of program</header><text>Not later than 3 years after the date of enactment of this subsection, the Secretary and the Secretary of the Treasury shall conduct an evaluation of and submit to the appropriate congressional committees a report on the program under this subsection, which shall—</text><clause id="id7BE210BE8A234B21B0AAF79D2D675678"><enum>(i)</enum><text>evaluate the effectiveness of the program, including an evaluation of the demand for loans under the program; and</text></clause><clause id="id838189B43CDC469189FD529B0A26BA27"><enum>(ii)</enum><text>include recommendations relating to the program, including whether—</text><subclause id="idD7BAB65AA4D5487BBE202874743900D8"><enum>(I)</enum><text>the program should be expanded to such that all community development financial institutions may make loans under the program to the borrowers described in paragraph (5); and</text></subclause><subclause id="id5A58EF3B3C02427082E1B0549412F5F8"><enum>(II)</enum><text>the set aside amount paragraph (3) should be modified in order to match demand under the program.</text></subclause></clause></subparagraph></paragraph><paragraph id="id977F7266850E447884C3DB99568D5005"><enum>(8)</enum><header>Grants for operational support</header><subparagraph id="id16b0ddba764948af9de738b1deb3d4cf"><enum>(A)</enum><header>In general</header><text>The Secretary shall make grants to Native community development financial institutions that receive a loan under this section to provide operational support and other related services to those institutions, subject to—</text><clause id="idD005A23194B446208F995BBEB491AC1E"><enum>(i)</enum><text> the satisfactory performance, as determined by the Secretary, of a Native community development financial institution in carrying out this section; and</text></clause><clause id="idEF93189D3F024A34A3D62348FB434527"><enum>(ii)</enum><text>the availability of funding.</text></clause></subparagraph><subparagraph id="idbfc7965df07148a2a37a132d9b506289"><enum>(B)</enum><header>Amount</header><text>A Native community development financial institution that receives a loan under this section shall be eligible to receive a grant described in subparagraph (A) in an amount equal to 20 percent of the direct loan amount received by the Native community development financial institution under the program under this section as of the date on which the direct loan is awarded.</text></subparagraph></paragraph><paragraph id="id3BFB42929AB844B0A18BBBDB8CFDC179"><enum>(9)</enum><header>Outreach and technical assistance</header><text>There is authorized to be appropriated to the Secretary $1,000,000 for each of fiscal years 2025, 2026, and 2027—</text><subparagraph id="idC4AE5A28E24D441D8544CCE02C9A30E4"><enum>(A)</enum><text>to provide technical assistance to Native community development financial institutions—</text><clause id="id51957CB81DDC46A2915962C27607F1CF"><enum>(i)</enum><text>relating to homeownership and other housing-related assistance provided by the Secretary; and</text></clause><clause id="idD44550DBC64E4629B35E8174FC2AD45B"><enum>(ii)</enum><text>to assist those institutions to perform outreach to eligible homebuyers relating to the loan program under this section; or</text></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id04dc6c886fa44630886a9da7a1339e98"><enum>(B)</enum><text>to provide funding to a national organization representing Native American housing interests to perform outreach and provide technical assistance as described in clauses (i) and (ii), respectively, of subparagraph (A).</text></subparagraph></paragraph><paragraph id="idb0fecbe82bc246aaab1c0c7acf7c4bbb"><enum>(10)</enum><header>Administrative costs</header><text>In addition to other available funds, the Secretary may use not more than 3 percent of the amounts made available to carry out this subsection for administration of the programs established under this subsection.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></section><enum>IV</enum><header>Section 504 loans and grants</header><section id="id612809BED463472A85C21BA72F89E178"><enum>401.</enum><header>Modifications to loans and grants for minor improvements to farm housing and buildings; income eligibility</header><text display-inline="no-display-inline">Section 504(a) of the Housing Act of 1949 (<external-xref legal-doc="usc" parsable-cite="usc/42/1474">42 U.S.C. 1474(a)</external-xref>) is amended—</text><paragraph id="idda8b77d62beb4e1eadfbff615914c487"><enum>(1)</enum><text>in the first sentence, by inserting <quote>and may make a loan to an eligible low-income applicant</quote> after <quote>applicant</quote>;</text></paragraph><paragraph id="idd54cd9c9b684408582119305adb2f7f3"><enum>(2)</enum><text>by inserting <quote>Not less than 60 percent of loan funds made available under this section shall be reserved and made available for very low-income applicants.</quote> after the first sentence; and</text></paragraph><paragraph id="id22afb4aececc49d985ae65b8f7bdb040" commented="no" display-inline="no-display-inline"><enum>(3)</enum><text display-inline="yes-display-inline">by striking <quote>$7,500</quote> and inserting <quote>$15,000</quote>.</text></paragraph></section><enum>V</enum><header>Rural community development initiative grants</header><section id="idE77D708A1E294B9E859ADC12160B8E9A"><enum>501.</enum><header>Rural community development initiative</header><text display-inline="no-display-inline">Subtitle E of the Consolidated Farm and Rural Development Act (<external-xref legal-doc="usc" parsable-cite="usc/7/2009">7 U.S.C. 2009 et seq.</external-xref>) is amended by adding at the end the following:</text><quoted-block id="id774993F7FB2A474597F52B77FED1FDED" display-inline="no-display-inline" style="OLC"><section id="id378617FA3D34430E820F03461B65DD2A"><enum>381O.</enum><header>Rural community development initiative</header><subsection id="id326DA00EA0804809B429DEDEEF2971CA"><enum>(a)</enum><header>Definitions</header><text>In this section:</text><paragraph id="id02FC3CBFCB4E4A5DBC198F5A636AA3F1"><enum>(1)</enum><header>Eligible entity</header><text>The term <term>eligible entity</term> means—</text><subparagraph id="idCB05F50151754046B7F9CF75B6F8F101"><enum>(A)</enum><text>a private, nonprofit community-based housing or community development organization;</text></subparagraph><subparagraph id="id2D65CB7C19074292AB02D42BE8C0DEA7"><enum>(B)</enum><text>a rural community; or</text></subparagraph><subparagraph id="id977844856D6A45B69244BB71593DE251"><enum>(C)</enum><text>a federally recognized Indian Tribe.</text></subparagraph></paragraph><paragraph id="idF375979D1CBA4DE693B028181DA3D25F"><enum>(2)</enum><header>Eligible intermediary</header><text>The term <term>eligible intermediary</term> means a qualified—</text><subparagraph id="idF773600A8E66407D9AC21AD6C26A7B7A"><enum>(A)</enum><text>private, nonprofit organization; or </text></subparagraph><subparagraph id="id2A40C37EC2B545969B165CA7132FE168"><enum>(B)</enum><text>public organization.</text></subparagraph></paragraph></subsection><subsection id="id22C54AB8D3154966A668DB643427F65A"><enum>(b)</enum><header>Establishment</header><text>The Secretary shall establish a Rural Community Development Initiative, under which the Secretary shall provide grants to eligible intermediaries to carry out programs to provide financial and technical assistance to eligible entities to develop the capacity and ability of eligible entities to carry out projects to improve housing, community facilities, and community and economic development projects in rural areas.</text></subsection><subsection commented="no" display-inline="no-display-inline" id="id436B9C0988C84AB4804DABEB12E5B1EE"><enum>(c)</enum><header display-inline="yes-display-inline">Amount of grants</header><text>The amount of a grant provided to an eligible intermediary under this section shall be not more than $250,000.</text></subsection><subsection id="idF7EB4314F26C400184691AFDC822F3F7"><enum>(d)</enum><header>Matching funds</header><paragraph id="id5D06709F7432458D83877DBCFA20757F"><enum>(1)</enum><header>In general</header><text>An eligible intermediary receiving a grant under this section shall provide matching funds from other sources, including Federal funds for related activities, in an amount not less than the amount of the grant.</text></paragraph><paragraph id="id7C526E46E4914B29965B59810EFE5D03" commented="no" display-inline="no-display-inline"><enum>(2)</enum><header>Waiver</header><text>The Secretary may waive paragraph (1) with respect to a project that would be carried out in a persistently poor rural region, as determined by the Secretary.</text></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></section><enum>VI</enum><header>Reports</header><section section-type="subsequent-section" id="id07228C40F7074CA787B39A91B1D3A377"><enum>601.</enum><header>Annual report on rural housing programs</header><text display-inline="no-display-inline">Title V of the Housing Act of 1949 (<external-xref legal-doc="usc" parsable-cite="usc/42/1471">42 U.S.C. 1471 et seq.</external-xref>), as amended by this Act, is amended by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idD1278EFD068A4910A0481FEBBDC48642"><section id="id276104C6878241E5B8AF2E7A9BC1682B"><enum>546.</enum><header>Annual report</header><subsection commented="no" display-inline="no-display-inline" id="id0c710f583a1647ac86ce02c6bece908e"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The Secretary shall submit to the appropriate committees of Congress and publish on the website of the Department of Agriculture an annual report on rural housing programs carried out under this title, which shall include significant details on the health of Rural Housing Service programs, including—</text><paragraph commented="no" display-inline="no-display-inline" id="id1b0938df376b43dd9ec3d4fdfc58cfc6"><enum>(1)</enum><text display-inline="yes-display-inline">raw data sortable by programs and by region regarding loan performance;</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id76361b44754e4c459f2a2a3bdf98254e"><enum>(2)</enum><text display-inline="yes-display-inline">the housing stock of those programs, including information on why properties end participation in those programs, such as for maturation, prepayment, foreclosure, or other servicing issues; and</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id6e7ba37749cd4b47a4be1864b19133c7"><enum>(3)</enum><text display-inline="yes-display-inline">risk ratings for properties assisted under those programs.</text></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id898d0a09f453477da6671d2742cc6930"><enum>(b)</enum><header>Protection of information</header><text display-inline="yes-display-inline">The data included in each report required under subsection (a) may be aggregated or anonymized to protect participant financial or personal information.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></section><section id="idade02d918c4644c6997bbd594167aac8"><enum>602.</enum><header>GAO report on Rural Housing Service technology</header><text display-inline="no-display-inline">Not later than 1 year after the date of enactment of this Act, the Comptroller General of the United States shall submit to Congress a report that includes—</text><paragraph commented="no" display-inline="no-display-inline" id="id96d27a73c556463db6d9149dbdcb75ba"><enum>(1)</enum><text display-inline="yes-display-inline">an analysis of how the outdated technology used by the Rural Housing Service impacts participants in the programs of the Rural Housing Service;</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id2db091ef497e4f47b62ec6e1e5ea6d1e"><enum>(2)</enum><text>an estimate of the amount of funding that is needed to modernize the technology used by the Rural Housing Service; and</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id4a9ce3894c9b47909349695c4dbee385"><enum>(3)</enum><text>an estimate of the number and type of new employees the Rural Housing Service needs to modernize the technology used by the Rural Housing Service.</text></paragraph></section><enum>VII</enum><header>Rural housing voucher program</header><section id="id763C2CA84C40412D8CDF46A288909E58"><enum>701.</enum><header>Adjustment to rural development voucher amount</header><subsection id="id9222507d219d48b8ba106e274a8f9ae5"><enum>(a)</enum><header>In general</header><text>Not later than 2 years after the date of enactment of this Act, the Secretary of Agriculture shall issue regulations to establish a process for adjusting the voucher amount provided under section 542 of the Housing Act of 1949 (<external-xref legal-doc="usc" parsable-cite="usc/42/1490r">42 U.S.C. 1490r</external-xref>) after the issuance of the voucher following an interim or annual review of the amount of the voucher.</text></subsection><subsection id="idd9d82a77c7eb4df79f8fa75ae5252cfb"><enum>(b)</enum><header>Interim review</header><text>The interim review described in subsection (a) shall, at the request of a tenant, allow for a recalculation of the voucher amount when the tenant experiences a reduction in income, change in family composition, or change in rental rate.</text></subsection><subsection id="idcdfdd13e06f5444e8149344ab3cb6473"><enum>(c)</enum><header>Annual review</header><paragraph id="idb44d47929a414df6a38ef739e6d59156"><enum>(1)</enum><header>In general</header><text>The annual review described in subsection (a) shall require tenants to annually recertify the family composition of the household and that the family income of the household does not exceed 80 percent of the area median income at a time determined by the Secretary of Agriculture.</text></paragraph><paragraph id="iddfe6b43dc193480a84183f40828ea4af"><enum>(2)</enum><header>Considerations</header><text>If a tenant does not recertify the family composition and family income of the household within the time frame required under paragraph (1), the Secretary of Agriculture—</text><subparagraph id="iddd7061dd196f49dea6152e0425bc24ac"><enum>(A)</enum><text>shall consider whether extenuating circumstances caused the delay in recertification; and</text></subparagraph><subparagraph id="id6106cd3dc5f946b4999e1c659d099aa0"><enum>(B)</enum><text>may alter associated consequences for the failure to recertify based on those circumstances.</text></subparagraph></paragraph><paragraph id="idda62261b0dd94436abf417f37c141d76"><enum>(3)</enum><header>Effective date</header><text>Following the annual review of a voucher under subsection (a), the updated voucher amount shall be effective on the 1st day of the month following the expiration of the voucher.</text></paragraph></subsection><subsection id="id52d730a0b6674afd9f52414637e08cd2"><enum>(d)</enum><header>Deadline</header><text>The process established under subsection (a) shall require the Secretary of Agriculture to review and update the voucher amount described in subsection (a) for a tenant not later than 60 days before the end of the voucher term. </text></subsection></section><section id="HD9B81E5AB0DC4960B68C62AC7143323F"><enum>702.</enum><header>Eligibility for rural housing vouchers</header><text display-inline="no-display-inline">Section 542 of the Housing Act of 1949 (<external-xref legal-doc="usc" parsable-cite="usc/42/1490r">42 U.S.C. 1490r</external-xref>) is amended by adding at the end the following:</text><quoted-block style="OLC" id="H3202F371FEED472B8B484A4D75CB9C3C"><subsection id="H6EDFEAE2A408493EA1A37DBC73B50E1B"><enum>(c)</enum><header>Eligibility of households in sections 514, 515, and 516 projects</header><text display-inline="yes-display-inline">The Secretary may provide rural housing vouchers under this section for any low-income household (including those not receiving rental assistance) residing for a term longer than the remaining term of their lease that is in effect on the date of prepayment, foreclosure, or mortgage maturity, in a property financed with a loan under section 514 or 515 or a grant under section 516 that has—</text><paragraph id="id99B02A54DBF54CE280085BDDBDEBB512"><enum>(1)</enum><text display-inline="yes-display-inline">been prepaid with or without restrictions imposed by the Secretary pursuant to section 502(c)(5)(G)(ii)(I);</text></paragraph><paragraph id="id0BFAE2D472C24522985BD6E7C9082A05"><enum>(2)</enum><text display-inline="yes-display-inline">been foreclosed; or </text></paragraph><paragraph id="id877E6A157CF84345AB2B9C82961E8D36"><enum>(3)</enum><text display-inline="yes-display-inline">matured after September 30, 2005.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></section><section id="H553534A7FA8649E88F643A67A86D35E5"><enum>703.</enum><header>Amount of voucher assistance</header><text display-inline="no-display-inline">Notwithstanding any other provision of law, in the case of any rural housing voucher provided pursuant to section 542 of the Housing Act of 1949 (<external-xref legal-doc="usc" parsable-cite="usc/42/1490r">42 U.S.C. 1490r</external-xref>), the amount of the monthly assistance payment for the household on whose behalf the assistance is provided shall be determined as provided in subsection (a) of such section 542, including providing for interim and annual review of the voucher amount in the event of a change in household composition or income or rental rate. </text></section><enum>VIII</enum><header>Transfers to nonprofit organizations</header><section id="id28aabdc47aa74c2fbe895c5e28fabdba"><enum>801.</enum><header>Transfer of multifamily rural housing projects</header><text display-inline="no-display-inline">Section 515 of the Housing Act of 1949 (<external-xref legal-doc="usc" parsable-cite="usc/42/1485">42 U.S.C. 1485</external-xref>) is amended—</text><paragraph commented="no" display-inline="no-display-inline" id="idd5e7b17e7b464fb2a57732fc44043d25"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (h), by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id0E29CD290EF94C45B88CD972917FABF0"><paragraph id="id08f38dd505044d5ea3d47c980324ca21"><enum>(3)</enum><header>Transfer to nonprofit organizations</header><text>A nonprofit or public body purchaser, including a limited partnership with a general partner with the principal purpose of providing affordable housing, may purchase a property for which a loan is made or insured under this section that has received a market value appraisal, without addressing rehabilitation needs at the time of purchase, if the purchaser—</text><subparagraph commented="no" display-inline="no-display-inline" id="id9a6788fa0ba5415cb8bd00ecccf63550"><enum>(A)</enum><text display-inline="yes-display-inline">makes a commitment to address rehabilitation needs during ownership and long-term use restrictions on the property; and</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id8e5472c5ad4a412da67f315e19813d06"><enum>(B)</enum><text>at the time of purchase, accepts long-term use restrictions on the property.</text></subparagraph></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block></paragraph><paragraph commented="no" display-inline="no-display-inline" id="ide909e6ad3a934fed8b459030a7777f37"><enum>(2)</enum><text>in subsection (w)(1), in the first sentence in the matter preceding subparagraph (A), by striking <quote>9 percent</quote> and inserting <quote>50 percent</quote>.</text></paragraph></section><enum>IX</enum><header>Section 502 loans and guarantees</header><section id="id7e3ce877040f4844b9ba2ede9cf27935"><enum>901.</enum><header>Extension of loan term</header><subsection commented="no" display-inline="no-display-inline" id="id18f0d788811c45fab00101b293eca1a0"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Section 502(a)(2) of the Housing Act of 1949 (<external-xref legal-doc="usc" parsable-cite="usc/42/1472">42 U.S.C. 1472(a)(2)</external-xref>) is amended—</text><paragraph commented="no" display-inline="no-display-inline" id="idb75385c247444f47bd4a29964206a700"><enum>(1)</enum><text display-inline="yes-display-inline">by inserting <quote>(A)</quote> before <quote>The Secretary</quote>;</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idbf0f7156b19543219092cd929d82be55"><enum>(2)</enum><text>in subparagraph (A), as so designated, by striking <quote>paragraph</quote> and inserting <quote>subparagraph</quote>; and</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id195a9f3244e84843a7c472d150ae06f9"><enum>(3)</enum><text>by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idED75037F30884735AAED471C3F12656D"><subparagraph commented="no" display-inline="no-display-inline" id="id72ea2e45817f468999d4684e10646663" indent="up1"><enum>(B)</enum><text display-inline="yes-display-inline">The Secretary may refinance or modify the period of any loan, including any refinanced loan, made under this section in accordance with terms and conditions as the Secretary shall prescribe, but in no event shall the total term of the loan from the date of the refinance or modification exceed 40 years.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ide984c3de95eb41b28c12f703a81f06ee"><enum>(b)</enum><header>Application</header><text display-inline="yes-display-inline">The amendment made under subsection (a) shall apply with respect to loans made under section 502 of the Housing Act of 1949 (<external-xref legal-doc="usc" parsable-cite="usc/42/1472">42 U.S.C. 1472</external-xref>) before, on, or after the date of enactment of this Act.</text></subsection></section><section id="id6d4891e8db6e49118550c1e520427127"><enum>902.</enum><header>Release of liability for section 502 guaranteed borrower upon assumption of original loan by new borrower</header><text display-inline="no-display-inline">Section 502(h)(10) of the Housing Act of 1949 (<external-xref legal-doc="usc" parsable-cite="usc/42/1472">42 U.S.C. 1472(h)(10)</external-xref>) is amended to read as follows:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idd23df97bef8343fdbee5e279eee6e51c"><paragraph id="id7c3dcbf240c9437897d928725a7c4e2d"><enum>(10)</enum><header>Transfer and assumption</header><text>Upon the transfer of property for which a guaranteed loan under this subsection was made and the assumption of the guaranteed loan by an approved eligible borrower, the original borrower of a guaranteed loan under this subsection shall be relieved of liability with respect to the loan.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></section><section id="id5224F7F6BAAD4E20AA3B99074608A44D"><enum>903.</enum><header>Department of Agriculture loan restrictions</header><subsection id="id6890E6413ADF4A62996292C107A0022E"><enum>(a)</enum><header>Definitions</header><text>In this section, the terms <quote>State</quote> and <quote>Tribal organization</quote> have the meanings given those terms in section 658P of the Child Care and Development Block Grant Act of 1990 (<external-xref legal-doc="usc" parsable-cite="usc/42/9858n">42 U.S.C. 9858n</external-xref>).</text></subsection><subsection id="id9FC63FA3BC6A4B6AB6A3E8D36E7C45D2"><enum>(b)</enum><header>Revision</header><text display-inline="yes-display-inline">The Secretary of Agriculture shall revise section 3555.102(c) of title 7, Code of Federal Regulations, to exclude from the restriction under that section—</text><paragraph id="id1177A01BD0F34654B9095FBAB55FDB62"><enum>(1)</enum><text display-inline="yes-display-inline">a home-based business that is a licensed, registered, or regulated child care provider under State law or by a Tribal organization; and</text></paragraph><paragraph id="id35497A732B3E4531B3394C053203901A"><enum>(2)</enum><text display-inline="yes-display-inline">an applicant that has applied to become a licensed, registered or regulated child care provider under State law or by a Tribal organization.</text></paragraph></subsection></section><enum>X</enum><header>Accessory dwelling units</header><section id="idfed26409e01f4054bb8b0627e8bd0237"><enum>1001.</enum><header>Loan guarantees</header><text display-inline="no-display-inline">Section 502(h)(4) of the Housing Act of 1949 (<external-xref legal-doc="usc" parsable-cite="usc/42/1472">42 U.S.C. 1472(h)(4)</external-xref>) is amended—</text><paragraph id="id5F2B6E9BEBD5445382C6031C1EB33AFA"><enum>(1)</enum><text display-inline="yes-display-inline">by redesignating subparagraphs (A), (B), and (C) as clauses (i), (ii), and (iii), respectively;</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id7ebffc071c324124a4db7d59ddb4127b"><enum>(2)</enum><text display-inline="yes-display-inline">by striking <quote>Loans may be guaranteed</quote> and inserting the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idFB46E4ACD3574F0891C63BE1466D6EEA"><subparagraph id="id8B39A5C5C2134736A2CB4AAAA0624CED"><enum>(A)</enum><header>Definition</header><text>In this paragraph, the term <term>accessory dwelling unit</term> means a single, habitable living unit—</text><clause id="idD39BADA5BA384B73B0812B523DD3F2FD"><enum>(i)</enum><text>with means of separate ingress and egress;</text></clause><clause id="id3996BC6C48864AE7BC77F2357D48BFE2"><enum>(ii)</enum><text>that is usually subordinate in size;</text></clause><clause id="idAC096A261A2B4AA69CA7FFC1ABC0CC05"><enum>(iii)</enum><text>that can be added to, created within, or detached from a primary 1-unit, single-family dwelling; and</text></clause><clause id="id489F2EC6817C4A4694117B03AB951EB0"><enum>(iv)</enum><text>in combination with a primary 1-unit, single family dwelling, constitutes a single interest in real estate.</text></clause></subparagraph><subparagraph id="idC171D4352D964C94AB0EA48ECC79D997"><enum>(B)</enum><header>Single family requirement</header><text>Loans may be guaranteed</text></subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block></paragraph><paragraph id="id2F5700A08B1C41158A92F0CE3C216E9A"><enum>(3)</enum><text>by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id7C814CBA8EEE48CCA3620845D3D8C1B3"><subparagraph id="id0CAF87759EAA4003A0B4D1DC79B98988"><enum>(C)</enum><header>Rule of construction</header><text>Nothing in this paragraph shall be construed to prohibit the leasing of an accessory dwelling unit or the use of rental income derived from such a lease to qualify for a loan guaranteed under this subsection—</text><clause id="id5C11EA7004614572A31D9399A0538BF8"><enum>(i)</enum><text>after the date of enactment of the <short-title>Rural Housing Service Reform Act of 2025</short-title>; and</text></clause><clause id="id19FDE3D25C6D48C2968C3F1B3E808A67"><enum>(ii)</enum><text>if the property that is the subject of the loan was constructed before the date of enactment of the <short-title>Rural Housing Service Reform Act of 2025</short-title>.</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></section><enum>XI</enum><header>Time frame for completing application review</header><section id="idca833af1e7ab43cab79870d7e8bc99b4"><enum>1101.</enum><header>Application review</header><subsection id="idaaaec752663d4f93850242c95fc94278"><enum>(a)</enum><header>Sense of Congress</header><text>It is the sense of Congress, not later than 90 days after the date on which the Secretary of Agriculture receives an application for a loan, grant or combined loan and grant under section 502 or 504 of the Housing Act of 1949 (<external-xref legal-doc="usc" parsable-cite="usc/42/1472">42 U.S.C. 1472</external-xref>, 1474), the Secretary of Agriculture should—</text><paragraph id="idF9C2E3B0BCF9404F807C5F0D735EEE6A"><enum>(1)</enum><text>review the application;</text></paragraph><paragraph id="id716FACDC8DA34AF28BA6DD45E39189AA"><enum>(2)</enum><text>complete the underwriting;</text></paragraph><paragraph id="idF388C796F4014BE0AA2A5F4715207100"><enum>(3)</enum><text>make a determination of eligibility with respect to the application; and</text></paragraph><paragraph id="id2A6FB50603B64512B2201C556553161D"><enum>(4)</enum><text>notify the applicant of determination.</text></paragraph></subsection><subsection id="idBD23FEE1DF46432C826974FB6041993E"><enum>(b)</enum><header>Report</header><paragraph id="id19A78ED9AB63432A9EF07644FA8EE6B6"><enum>(1)</enum><header>In general</header><text>Not later than 90 days after the date of enactment of this Act, and annually thereafter until the date described in paragraph (2), the Secretary of Agriculture shall submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives a report—</text><subparagraph id="id87B70924801B449DB99DBAE48AE20208"><enum>(A)</enum><text>detailing the timeliness of eligibility determinations and final determinations with respect to applications under section 502 and 504 of the Housing Act of 1949 (<external-xref legal-doc="usc" parsable-cite="usc/42/1472">42 U.S.C. 1472</external-xref>, 1474), including justifications for any eligibility determinations taking longer than 90 days;</text></subparagraph><subparagraph id="id3953DA6A03724F8B958A747B45EDDC81"><enum>(B)</enum><text>that includes recommendations to shorten the timeline for notifications of eligibility determinations described in paragraph (1) to not more than 90 days.</text></subparagraph></paragraph><paragraph id="idDE47EE21BF9E4FF29F1B4F92FA408905"><enum>(2)</enum><header>Date described</header><text>The date described in this paragraph is the date on which, during the preceding 5-year period, the Secretary of Agriculture provides each eligibility determination described in paragraph (1) during the 90-day period beginning on the date on which each application is received.</text></paragraph></subsection></section>