DES MOINES, IA — Representatives Zach Nunn (IA-03) and Emanuel Cleaver (MO-05), today (Thursday), introduced the bipartisan Rural Housing Service Reform Act to preserve affordable housing, improve program oversight, and expand access to safe homes for families, seniors, and workers across rural Iowa. In a news release, Rep. Nunn said “More and more Iowans are watching the dream of homeownership slip out of reach. Too many programs meant to help are outdated, buried in red tape, and no longer work for the families they were created to serve.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.”

More than 40 percent of Iowans spend over a third of their income on rent, while rural communities face worsening shortages as aging USDA-financed properties leave the program when mortgages mature. Outdated USDA systems, slow processing times, and limited oversight have only compounded these challenges—leaving families with fewer options and raising the risk of displacement.  Lance Henning Greater Des Moines Habitat for Humanity CEO said in the news release, “A safe, stable home is the foundation of a good life, but far too many of our neighbors are priced out of homeownership. The affordable housing crisis confronting our nation is felt in our small towns as much as it is in any big city. All efforts that help make homeownership more accessible are a step in the right direction.”

Key provisions of the Rural Housing Service Reform Act include:

• The creation of a permanent program to preserve USDA-financed affordable rental housing by enabling nonprofits to acquire properties and keep rental assistance after loans mature
• Modernize USDA technology and staffing to speed up applications, improve oversight, and prevent fraud in the system
• Expand home repair grants and financing to help rural families maintain and grow their homes
• Support rural childcare by allowing loan guarantees for homes with in-home daycare facilities
• Require annual reporting and Government Accountability Office (GAO) audits to ensure transparency and protect taxpayer investments

The Senate version of the Rural Housing Service Reform Act, led by Senators Tina Smith (D-MN) and Mike Rounds (R-SD), recently advanced through the Senate Banking Committee as part of a broader housing package. The overall package is sponsored by Banking Committee Chairman Tim Scott (R-SC) and Ranking Member Elizabeth Warren (D-MA).

Text of the bill can be found here.