Streamlining Rural Housing Act of 2025

#4989 | HR Congress #119

Subjects:

Last Action: Referred to the House Committee on Financial Services. (8/15/2025)

Bill Text Source: Congress.gov

Summary and Impacts
Original Text

Bill Summary

The "Streamlining Rural Housing Act of 2025" is legislation designed to improve the efficiency of housing projects funded by the U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of Agriculture (USDA). The Act mandates the two agencies to enter into a memorandum of understanding (MOU) within 180 days of its enactment, focusing on several key areas:

1. **Evaluation of Environmental Exclusions**: The agencies will assess categorical exclusions for housing projects, which could expedite project approvals by reducing unnecessary environmental reviews.

2. **Lead Agency Designation**: The MOU will establish a process to designate one agency as the lead for environmental assessments, thereby streamlining the approval process for projects that require involvement from both HUD and USDA.

3. **Compliance with Regulations**: The agencies must ensure adherence to existing environmental regulations, maintaining standards that protect community safety and environmental integrity.

4. **Joint Inspection Process**: The Act calls for exploring a collaborative physical inspection process for projects funded by both agencies to enhance oversight and efficiency.

Additionally, an advisory working group will be formed, comprising various stakeholders, including nonprofit organizations, housing developers, property managers, and residents, to provide input on the MOU's implementation. The agencies are also required to submit a report within a year, outlining recommendations for further legislative or regulatory improvements aimed at enhancing housing project effectiveness, without compromising safety, costs, or environmental standards for residents.

Possible Impacts

The "Streamlining Rural Housing Act of 2025" could have several impacts on individuals and communities. Here are three examples:

1. **Improved Access to Affordable Housing**: By streamlining the processes for evaluating and approving housing projects funded by both the Department of Housing and Urban Development (HUD) and the Department of Agriculture (USDA), the legislation can lead to quicker development of affordable housing in rural areas. This could benefit low-income families and individuals who struggle to find affordable living options, potentially reducing homelessness and housing instability.

2. **Enhanced Collaboration and Representation**: The establishment of an advisory working group that includes various stakeholders—such as nonprofit organizations, housing developers, and residents—ensures that the voices of those affected by housing policies are heard. This could lead to more community-oriented housing solutions that better meet the needs of residents, fostering a sense of ownership and involvement in housing development projects.

3. **Environmental Safeguards and Compliance**: The requirement for the HUD and USDA to maintain compliance with existing environmental regulations while evaluating housing projects means that communities can expect a focus on sustainability and environmental protection. Residents will likely benefit from living in healthier environments, as the legislation emphasizes the importance of environmental assessments and impact statements, ensuring that new housing developments consider ecological factors.

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4989 Introduced in House (IH)]

<DOC>






119th CONGRESS
  1st Session
                                H. R. 4989

   To require the Secretary of Housing and Urban Development and the 
 Secretary of Agriculture to enter into a memorandum of understanding 
         relating to housing projects, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            August 15, 2025

 Mr. Stutzman (for himself, Ms. Pettersen, Mrs. McClain, and Mr. David 
Scott of Georgia) introduced the following bill; which was referred to 
                  the Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
   To require the Secretary of Housing and Urban Development and the 
 Secretary of Agriculture to enter into a memorandum of understanding 
         relating to housing projects, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Streamlining Rural Housing Act of 
2025''.

SEC. 2. MEMORANDUM OF UNDERSTANDING.

    (a) In General.--Not later than 180 days after the date of 
enactment of this Act, the Secretary of Housing and Urban Development 
and the Secretary of Agriculture shall enter into a memorandum of 
understanding to--
            (1) evaluate categorical exclusions (as defined in section 
        111 of the National Environmental Policy Act of 1969 (42 U.S.C. 
        4336e)) for housing projects funded by amounts from the 
        Department of the Housing and Urban Development and the 
        Department of Agriculture;
            (2) develop a process to designate a lead agency among the 
        Department of Housing and Urban Development and the Department 
        of Agriculture and streamline the adoption of environmental 
        impact statements and environmental assessments approved by the 
        other agency to construct housing projects funded by amounts 
        from both agencies;
            (3) maintain compliance with environmental regulations 
        under part 58 of title 24, Code of Federal Regulations, as in 
        effect on January 1, 2025; and
            (4) evaluate the feasibility of a joint physical inspection 
        process for housing projects funded by amounts from the 
        Department of the Housing and Urban Development and the 
        Department of Agriculture.
    (b) Advisory Working Group.--
            (1) In general.--Not later than 180 days after the date of 
        enactment of this Act, the Secretary of Housing and Urban 
        Development and the Secretary of Agriculture shall establish an 
        advisory working group for the purpose of consulting on the 
        implementation of the memorandum of understanding entered into 
        under subsection (a).
            (2) Members.--The advisory working group established under 
        paragraph (1) shall consist of rural and non-rural 
        stakeholders, including--
                    (A) affordable housing nonprofit organizations;
                    (B) State housing and housing finance agencies;
                    (C) nonprofit and for-profit home builders and 
                housing developers;
                    (D) property management companies;
                    (E) owners of multifamily properties, including 
                nonprofit and for-profit owners and operators;
                    (F) public housing agencies;
                    (G) residents in housing assisted by the Department 
                of Housing and Urban Development or the Department of 
                Agriculture and representatives of those residents; and
                    (H) housing contract administrators.
    (c) Report.--Not later than 1 year after the date of enactment of 
this Act, the Secretary of Housing and Urban Development and the 
Secretary of Agriculture shall submit to the Committee on Banking, 
Housing, and Urban Affairs of the Senate and the Committee on Financial 
Services of the House of Representatives a report that includes 
recommendations for legislative, regulatory, or administrative 
actions--
            (1) to improve the efficiency and effectiveness of housing 
        projects funded by amounts from the Department of the Housing 
        and Urban Development and the Department of Agriculture; and
            (2) that do not materially, with respect to residents of 
        housing projects described in paragraph (1)--
                    (A) reduce the safety of those residents;
                    (B) shift long-term costs onto those residents; or
                    (C) undermine the environmental standards of those 
                residents.
                                 <all>