South Iowa News

Representatives Zach Nunn (IA-03) and Emanuel Cleaver (MO-05) have introduced the bipartisan Rural Housing Service Reform Act, aimed at updating U.S. Department of Agriculture (USDA) housing programs to address affordable housing shortages in rural Iowa and other communities.

“More and more Iowans are watching the dream of homeownership slip out of reach,” said Rep. Nunn. “Too many programs meant to help are outdated, buried in red tape, and no longer work for the families they were created to serve. This bipartisan bill cuts through that bureaucracy to protect affordable housing, speed up repairs, and modernize USDA’s tools—so rural families, seniors, and workers can build their future right here in Iowa.”

Rural areas have seen a rise in residents spending over a third of their income on rent. The problem is made worse as older USDA-financed properties exit federal programs when mortgages mature. Outdated systems and slow processing at the USDA contribute to limited options for families and increase the risk of displacement.

“Every American deserves a safe, stable and affordable place to call home, regardless of their ZIP code,” said Rep. Cleaver. “Tragically, as communities struggle to build more housing and rural housing programs are unable to keep up with demand, residents in rural Missouri and beyond are struggling to stay afloat. Congress must take action to lower costs by cutting through unnecessary red tape and modernizing existing housing programs to maximize efficiency and draw more private investment—which is precisely what the bipartisan Rural Housing Service Reform Act will do. I’m proud to introduce this legislation with Congressman Nunn as we seek to make housing more affordable for hardworking families.”

Lance Henning, CEO of Greater Des Moines Habitat for Humanity, said: “A safe, stable home is the foundation of a good life, but far too many of our neighbors are priced out of homeownership... All efforts that help make homeownership more accessible are a step in the right direction.”

Michele Stockwell, president of Bipartisan Policy Center Action (BPC Action), stated: “As our nation continues to grapple with a housing shortage and affordability crisis, BPC Action commends Reps. Zach Nunn (R-IA) and Emanuel Cleaver, II (D-MO) for their bipartisan leadership in introducing the Rural Housing Service Reform Act... This legislation reforms and strengthens USDA’s housing programs so they can continue to meet the needs of rural households while expanding access to homeownership opportunities.”

Colleen Fisher from the Council for Affordable and Rural Housing highlighted: “The Council for Affordable and Rural Housing (CARH) applauds the efforts of Representatives Zach Nunn and Emanuel Cleaver as they introduce legislation which would, if passed by Congress, be instrumental in preserving the affordable multifamily housing stock in many rural communities throughout the country... Provisions in the bill will allow the Rural Housing Service to more effectively address the housing needs of both providers and residents who live in this vital housing.”

David Lipsetz from Housing Assistance Council added: “The Rural Housing Service Reform Act is a testament to commonsense, bipartisan collaboration in Congress... This important legislation would modernize USDA’s flagship single-family housing programs [and] provide new tools to help preserve their critical stock of rural multifamily properties.”

Renee Willis from National Low Income Housing Coalition noted: “NLIHC is proud to support the bipartisan Rural Housing Service Reform Act, which would make much-needed, common-sense improvements to USDA Rural Housing Service programs... I applaud Representatives Cleaver and Nunn for leading this bill.”

Bob Rapoza from National Rural Housing Coalition said: “Preserving existing rural rental housing for seniors and families... updating policies on rural home repair funds... will pave the way for better housing in America’s small towns.” He credited Reps. Nunn and Cleaver for including these priorities.

Bill Sweeney from AARP Government Affairs commented: “There’s nothing more important than where you call home. But for too many Americans in small towns ... rising costs are making it harder ... The Rural Housing Service Reform Act is long-overdue legislation ... By preserving affordability ... this bill would ensure older Americans can age with dignity.”

Nadia Villagràn from Local Initiatives Support Corporation stated: “The Local Initiatives Support Corporation is proud to support [the act], since we’ve seen firsthand the hardship caused by losing affordable rental housing ... This legislation will help preserve this critical housing stock while also improving USDA’s single-family housing repair ... We applaud Representatives Cleaver and Nunn.”

Chris Vincent from Habitat for Humanity International added: “USDA’s rural housing service programs have been a lifeline ... The [act] modernizes existing ... improves processing ... supports existing homeowners ... We applaud Representatives Cleaver and Nunn for leading this bipartisan effort.”

Bill Killmer from Mortgage Bankers Association concluded: “The Mortgage Bankers Association applauds [the act]. This legislation takes meaningful steps ... while also providing long-term stability for rental assistance... particularly its provisions that improve financing options for accessory dwelling units.”

Key supporters include organizations such as Greater Des Moines Habitat for Humanity; Habitat for Humanity International; National Rural Housing Coalition; National Low Income Housing Coalition; National Housing Law Project; Council for Affordable & Rural Housing; Bipartisan Policy Center Action; Local Initiatives Support Corporation; Housing Assistance Council; Enterprise Community Partners; Mortgage Bankers Association; Council of State Community Development Agencies; National Association of Counties; AARP.

In parallel legislative activity, Senators Tina Smith (D-MN) and Mike Rounds (R-SD) advanced a Senate version through committee as part of a broader package led by Chairman Tim Scott (R-SC) and Ranking Member Elizabeth Warren (D-MA).

Text of the bill can be found here.