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Adds a new subsection (c) to permit the Secretary to provide rural housing vouchers to low-income households in properties financed under sections 514, 515, or 516 that have been prepaid without restrictions, foreclosed, or matured after September 30, 2005 and are not receiving rental assistance under section 545(f).
Amends subsection (d) to (1) redesignate existing subparagraphs, insert a new subparagraph authorizing 20-year (or loan-term) renewals of certain rental assistance agreements for owners of projects financed under section 514 or 515 or owners with restrictive use agreements under section 545(e), subject to appropriations; (2) change paragraph (2) language from 'shall' to 'may'; and (3) add a new paragraph requiring at least a 1-year period for owners to continue assistance to an eligible unassisted tenant when contract authority becomes available due to termination of assistance for an assisted tenant.
Adds a new section (Section 545) to Title V of the Housing Act of 1949 establishing a Housing preservation and revitalization program with notice requirements, loan restructuring authority, rental assistance renewal/decoupling provisions, restrictive use agreements, technical assistance grants, transfer-of-assistance procedures, an administrative expense cap, an authorization of appropriations, and rulemaking deadlines.
Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
Introduced March 6, 2025 by Jeanne Shaheen · Last progress March 6, 2025
Creates a permanent USDA Housing Preservation and Revitalization Program to preserve and revitalize rural multifamily rental properties financed under USDA sections 514, 515, and 516, strengthen tenant protections around loan prepayments and maturities, and permit restructuring and renewal of rental assistance. It expands eligibility for rural housing vouchers for certain low‑income households affected by prepayments, foreclosures, or loan maturities, mandates specific calculation rules for those vouchers, and adds a longer rental‑assistance renewal option for owners. Requires the Department of Agriculture to invest $50 million (FY2026) in technology upgrades to process and service multifamily loans and to manage rural rental housing, and to deliver a preservation plan and a 16‑member advisory committee to prevent tenant displacement and monitor outcomes.
Establishes a program called 'Housing preservation and revitalization program' for preservation and revitalization of multifamily rental housing projects financed under sections 514, 515, or 516; the Secretary shall carry out the program.
Owners: On an annual basis the Secretary must provide written notice to each owner of a property financed under sections 514, 515, or 516 that will mature within the 4-year period beginning when the notice is provided; the notice must set forth options and financial incentives to facilitate extending the loan term or decoupling a rental assistance contract pursuant to subsection (f).
Tenants: For each property financed under sections 514, 515, or 516, beginning not later than 3 years before loan maturity, the Secretary shall annually provide written notice to each household with (i) the loan maturity date, (ii) possible actions that may occur when the loan matures, and (iii) how to protect their right to remain in federally assisted housing or secure a voucher under section 542 or section 8 of the 1937 Act. Notices must be in plain English and translated where many residents speak other languages.
Loan restructuring authority: When restructuring is proposed by either the Secretary or an owner, the Secretary may restructure existing housing loans as appropriate to preserve projects for low-income residents and farm laborers, including reducing or eliminating interest, deferring payments, subordinating/reducing/reamortizing debt, and providing other financial assistance (advances, payments, incentives, and reasonable returns to owners).
Renewal of rental assistance when loans are restructured: If the Secretary proposes or agrees to restructure a loan under subsection (c), the Secretary shall offer to renew the rental assistance contract under section 521(a)(2) for the shorter of the loan term or a 20-year term (subject to annual appropriations), provided the owner brings the property up to or maintains decent, safe, and sanitary standards for the full term of the contract.
Who is affected and how:
Low‑income tenants in USDA‑financed rural multifamily projects: receive stronger protections when loans are prepaid, foreclosed, or mature; increased access to rural housing vouchers if their properties lose USDA restrictions; and benefit from preservation efforts intended to prevent displacement.
Owners and operators of rural multifamily properties financed under sections 514/515/516: gain new tools to preserve affordability (loan restructuring, long‑term rental assistance renewals up to 20 years), additional time to rehouse or convert tenants when assistance ends, and clearer transfer/technical assistance procedures that may ease preservation transactions.
USDA Rural Housing Service and program staff: responsible for running a new national preservation program, conducting rulemaking, administering expanded voucher authority, implementing loan/reservation changes, and managing technology upgrades; workloads and administrative responsibilities will increase, but the bill limits admin spending for the program while authorizing technology funds.
Rural communities and local partners (nonprofits, housing developers, state/tribal/local officials): may gain access to preservation resources, technical assistance, and vouchers to maintain local affordable housing stock; community stakeholders will participate on the advisory committee and in plan implementation.
Housing voucher and rental‑assistance systems: must apply a specific statutory calculation for newly eligible rural vouchers and accommodate longer renewal contracts and other administrative adjustments.
Overall implications:
Equity considerations: the bill targets preservation of subsidized rural rental housing, which primarily serves low‑income households; intended tenant‑protections and voucher expansions aim to mitigate displacement for vulnerable renters.
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Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
Introduced in Senate