ELLY GRIMM
• Leader & Times
Housing in rural areas can be hard to come by and recently, some legislation was introduced that could help with that.
Thursday, U.S. Senators Jerry Moran (R-Kan.), Pete Ricketts (R-Neb.), Jeanne Shaheen (D-N.H.) and Ruben Gallego (D-Ariz.) introduced bipartisan legislation to streamline rural housing regulations between the U.S. Department of Housing and Urban Development (HUD) and U.S. Department of Agriculture (USDA) by requiring the two agencies to enter into a memorandum of understanding (MOU) to align housing standards.
“Rural housing projects that utilize federal funding sources, such as HUD’s HOME Investment Partnerships Program and USDA’s 538 loan program, require slightly different environmental reviews and inspection standards that must be completed separately to meet both agencies’ requirements,” a release from Moran’s office noted. “By requiring HUD and USDA to enter into a MOU, this legislation simplifies the rural housing regulation process, lowering the cost and shortening project timelines for developers.”
Moran and the others then went into more detail about the legislation.
“Across Kansas, the demand for rural housing has been on the rise, and it’s important that we find innovative solutions to address this issue,” Moran noted in the release. “Streamlining rural housing regulations between HUD and USDA will simplify the regulatory process for developers, allowing them to more efficiently address the growing housing needs in Kansas and across the country.”
“Duplicative red tape and burdensome regulations create additional costs and deter much-needed investments in rural affordable housing,” Sen. Ricketts noted in the release from Moran’s office. “The Streamlining Rural Housing Act is the first step to enhance efficiency and eliminate conflicting requirements that delay approvals so that we can build more housing in rural Nebraska. When I was Governor of Nebraska, our state created a rural workforce housing fund to help administer support to communities for rural housing needs, like construction costs, down payment assistance, and technical assistance.”
“To address the shortage of quality, affordable housing in rural areas, federal regulations need to work for communities rather than against them,” Sen. Shaheen noted in the release from Moran’s office. “I’m glad to join my colleagues in introducing bipartisan legislation that would improve and streamline environmental reviews and housing unit inspections so that we can build more homes and lower costs where it’s needed most.”
“Americans are facing an affordable housing crisis. We need to build more housing and build it fast to bring down costs and get more people into homes,” Sen. Gallego noted in the release from Moran’s office. “Government should be part of the solution, but right now it’s part of the problem. By reducing red tape and streamlining redundant processes, this bipartisan bill will accelerate construction, lower costs, and get more desperately needed homes on the market.”
Other housing leaders also praised the legislation.
“The Council for Affordable and Rural Housing (CARH) applauds the efforts of Senators Moran, Ricketts, Shaheen, and Gallego in introducing this important legislation which will help streamline program requirements at the Department of Housing and Urban Development (HUD) and the United States Department of Agriculture’s Rural Development (RD) programs,” Colleen Fisher, Executive Director of CARH, noted in the release from Moran’s office. “Many times when housing developers and owners are operating a property here is a need to have multiple sources of funding so that the property can cash flow and rents are at levels that low-income residents can afford. When this occurs, the agencies require separate if not identical inspections, somewhat negating the purpose of having the multiple layers of funding, thus increasing regulatory costs. By requiring one inspection, operating costs will be reduced or redirected toward services on properties. The approach envisioned in the bill has been supported by several different Administrations, with the goal of reducing regulatory burdens and improving the delivery of affordable housing programs.”
This legislation would:
• Require HUD and USDA to enter into a memorandum of understanding to align housing standards.
• Require the creation of an advisory group to consult with the agencies on the MOU’s implementation. This group would include rural affordable housing nonprofit organizations, state housing agencies, home builders, property management companies, multifamily property owners and housing contract administrators.
• Require HUD and USDA to report to the appropriate committees on recommendations for legislative, regulatory or administrative actions to improve the efficiency and effectiveness of combined funding housing projects.
