Enhancing Affordable Housing in Rural America
Between 2010 and 2020, rural areas in the United States witnessed a modest growth of just 1.7% in available housing units. Alarmingly, nearly half of the states reported a decline in housing availability during this same period, jeopardizing properties once financed by the Rural Housing Service (RHS) from previous decades.
The Rural Housing Service Reform Act
Senator Mike Rounds of South Dakota emphasized the importance of improving homeownership prospects in rural regions, stating, “Improving homeownership opportunities, particularly in rural areas, is critical for the wellbeing of South Dakota families.” The Rural Housing Service Reform Act aims to simplify federal housing programs and eliminate obstacles to owning homes, thereby making homeownership a tangible goal for more residents in the state.
Preserving Housing Resources
Rounds highlighted that the proposed legislation not only targets the enhancement of homeownership but also seeks to protect existing affordable housing and rental assistance programs in rural communities. He expressed eagerness to collaborate with fellow lawmakers, including Senator Tina Smith, to tackle the prevalent affordable housing issues facing these regions.
Bipartisan Support for Legislative Change
Senator Smith reiterated concerns about the national housing shortage, noting its disproportionate impact on rural communities as compared to urban areas. She underscored the significance of the bill as a product of collaborative, bipartisan discussions with various stakeholders aiming to refine federal rural housing programs. “This legislation is the direct result of bipartisan hearings and conversations with stakeholders who helped identify ways we can make federal rural housing programs work better for people struggling to find a safe, affordable place to live,” Smith remarked.
Initial Challenges and Current Developments
The initial version of the Rural Housing Service Reform Act, introduced in 2023, faced challenges in garnering support, lacking any co-sponsors and not advancing beyond committee referral. However, the renewed effort features nine co-sponsors from both Democratic and Republican parties, indicating growing support for this critical issue.
- Senators co-sponsoring the bill include:
- Kevin Cramer (R-N.D.)
- Mike Crapo (R-Idaho)
- Steve Daines (R-Mont.)
- John Fetterman (D-Pa.)
- Jerry Moran (R-Kan.)
- Jeanne Shaheen (D-N.H.)
- Mark Warner (D-Va.)
- Raphael Warnock (D-Ga.)
Community Perspectives on Housing Needs
Lakota Vogel, executive director of the Four Bands Community Fund in South Dakota and a member of the South Dakota Native Homeownership Coalition, articulated the necessity of this bill in addressing the growing demand for rural housing. “The demand for rural housing in South Dakota remains high. In order to keep the costs of building single-family homes affordable, we need this legislation,” Vogel asserted. He noted that the bill aims to streamline processes and promote public-private partnerships to enhance rural housing investment.
Other Legislative Initiatives
The Rural Housing Service Reform Act was referred anew to the Senate banking committee on April 2. Recent legislative activity has seen lawmakers actively introducing various housing bills, such as the Neighborhood Homes Investment Act, the Affordable Housing Credit Improvement Act, the Housing Supply Frameworks Act, and the Homebuyers Privacy Protection Act.