ELLY GRIMM
• Leader & Times
The need for more housing in rural parts of the U.S. has been a hot topic for a while, and recently, some legislation was introduced to help with just that.
Last Thursday, U.S. Senators Jerry Moran and Angus King (I-Maine) introduced legislation to address the national housing shortage and make it easier for rural workers to live in the communities they serve.
“The Farmhouse-to-Workforce Housing Act would expand the existing Housing Preservation Grants (HPG) program to allow rural homeowners to construct additional housing on their property, such as an attached apartment unit or a small home nearby, to be available for rent,” a release from Moran’s office noted. “Currently, HPGs are underused and receive limited funding that can only cover small costs and repairs. This legislation would optimize the program for rural housing creation, increasing its funding and expanding eligibility for homeowners who want to participate.
“There is a high demand for rural housing across Kansas, and it’s important that our housing programs offer creative solutions to address this issue,” Moran noted in the release. “Modernizing the Housing Preservation Grants program will help create new avenues for renovating and constructing homes in smaller communities across the country.”
“Both urban and rural communities across Maine and the nation are facing a serious housing shortage,” King noted in the release from Moran’s office. “Unfortunately, one law that Congress cannot repeal is the law of supply and demand; limited supply will inevitably increase prices. However, through creative solutions, we can increase the housing supply to help meet demand. I thank Senator Moran for working with me on the Farmhouse-to-Workforce Housing Act — it’s a commonsense, bipartisan step that will help us combat the housing shortage and ensure Maine people and residents across the country can live in the communities where they work. Maine is one big, small town connected by long roads, and when I drive those long roads, I see potentially available properties in the same communities that are facing crisis levels of housing availability. This bill makes it cheaper and easier for Maine people and residents across the country to renovate their homes or build new ones on their land and ease the shortfall.”
“The Farmhouse-to-Workforce Housing Act of 2024 would provide a significant step forward in addressing workforce housing needs and strengthening our nation’s small farms, the heart of our rural communities,” Kara Hay, President and CEO of Penquis, noted in the release from Moran’s office. “The health of our economy and the wellbeing of American families depend on the availability of affordable housing. I commend Senators King and Moran for introducing this practical solution for our nation’s farmers, farm workers and food system.”
This legislation would:
• Allow recipients to use HPG money to construct additional housing units either within or outside their home.
• Authorize funding for the nationwide program at $200,000,000.
• Offer grants of up to $100,000 to low- or medium-income recipients.
• Require the original home to be 25 years or older.
• Established a required landlord education program to help homeowners learn how to oversee rental housing.
• Create a five-year ownership and occupancy requirement upon completion to prevent homeowners from flipping their property at increased values and prevent developers from taking advantage of the program.
“Sen. Moran has been committed to ensuring people across Kansas can access safe and affordable housing,” the release continued. “He recently introduced the Affordable Housing Credit Improvement Act to create nearly two million new affordable homes across the country and also worked to improve affordability of rural homes and farms through the Access to Credit for our Rural Economy (ACRE) Act of 2023.”
Last Thursday’s news follows the urging of Moran and other colleagues back in August to invest more in rural housing.
“In 2023, Sens. Moran and Warner led 20 of their colleagues urging Treasury Secretary Janet Yellen to provide written guidance that clarifies that the Government Sponsored Enterprises (GSEs) Fannie Mae and Freddie Mac are not Tax-Exempt Controlled Entities (TECEs),” the August release from Moran’s office noted. “Current Internal Revenue Code contains a provision stating that investors partnering with TECEs are not entitled to certain benefits, including accelerated depreciations, bonus depreciation, historic rehab tax credits or certain energy credits that support companies offering affordable housing tax credits. This legislation would clarify that Fannie Mae and Freddie Mac are not subject to this rule, therefore protecting their participation in partnerships that are crucial for low-income housing investments.”
The August legislation received much praise from Moran and his colleagues.
“Housing affordability issues have a significant impact on rural Americans across the country,” Moran noted in the August release. “By making this technical change, rural housing investors that partner with TECEs can confidently invest in the affordable housing tax credits that many rural communities rely upon. I encourage my colleagues to support this bill so that we can continue to improve rural communities in Kansas by reducing housing costs.”
“Far too many folks across Virginia – including those in rural communities – are suffering because of the affordable housing crisis,” Sen. Mark Warner (D-Va.) noted in the August release. “We need an all-hands-on-deck approach to getting investments into rural communities and expanding housing options for low-income Americans. I’ve been continuously raising the alarm about the commonsense fix in the Preserving Rural Housing Investments Act. We must pass this bipartisan legislation so we can unlock investments in our rural communities and cut housing costs for hard-working Virginians.”
“We can’t address our housing affordability crisis without building more units,” Sen. Todd Young (R.-Ind.) noted in the August release. “By making one simple clarification, this bill will unlock new partnerships that are crucial for rural low-income housing investments, bringing much-needed projects to our rural communities.”
