On October 9, the Senate passed S. 2296, the National Defense Authorization Act. The bill includes an amendment sponsored by Sens. Tim Scott (R, SC) and Elizabeth Warren (D,MA) the Chair and Ranking Member, respective of the Senate Banking Committee. The amendment, the Road to Housing Act, was reported to the Senate by the Committee in July. The bill includes most of provisions of S. 1260, Rural Housing Services Reform Act sponsored by Sens. Smith (D,MN), Rounds (R, SD) and other Senators from both sides.
Key Provisions
- Conforms USDA Multifamily Mortgages foreclosure procedures to the Multifamily Mortgage Foreclosure Act of 1981, requiring that rental assistance for such properties is maintained during the foreclosure process.
- Provides a permanent authorization for the USDA Housing Preservation Revitalization Program; establishes a timeframe and process for notifying owners and tenants of maturing loans, incentives for loan restructuring, terms and conditions for renewal of rental assistance for restructured loans, and terms and conditions for decoupling rental assistance from maturing loans. Authorizes $200 million for annual appropriations.
- Authorizes the Native American CDFI Relending Program and sets aside $50 million in Section 502 direct funds.
- Modifies Section 504 to reserve 60% of funds for very low-income households and increases the amount a qualified applicant may have for an unsecured loan to $15,000.
- Authorizes the Rural Community Development Initiative
- Requires Annual Reports on Rural Housing Programs, including information on program loan performance, and status of housing stock financed by RHS programs.
- Authorizes a GAO report on RHS Information Technology, including estimates of the cost for replacing outdated systems and estimates of the number of employees necessary to modernize RHS technology.
- Revises the Rural Housing Voucher program to provide annual adjustments based on family size, income, and rent; revises eligibility to include any resident of developments financed by Secs. 514, 515, or 516 in the case of loan foreclosure, prepayment, or maturity.
- Establishes a set-aside of 25 percent of funds to finance the transfer of a USDA-financed multi-family development to a non-profit or public body.
- Authorizes the Section 502 direct loan terms of 40 years for borrowers with incomes at or below 60 percent of the median who could not otherwise qualify.
Here is the Senate bill.
There is a House companion, HR 4957, sponsored by Reps. Zachary Nunn (R, IA) and Emanual Cleaver (D, MO) and others. Here is the House companion.