Streamlining Rural Housing Act of 2025

#2423 | S Congress #119

Subjects:

Last Action: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs. (7/23/2025)

Bill Text Source: Congress.gov

Summary and Impacts
Original Text

Bill Summary

The "Streamlining Rural Housing Act of 2025" is a piece of legislation aimed at improving the efficiency and effectiveness of housing projects in rural areas funded by the Department of Housing and Urban Development (HUD) and the Department of Agriculture (USDA).

Key components of the Act include:

1. **Memorandum of Understanding**: Within 180 days of enactment, HUD and USDA must enter into an agreement that focuses on:
- Evaluating environmental review processes for housing projects.
- Designating a lead agency to streamline environmental impact assessments.
- Ensuring compliance with existing environmental regulations.
- Exploring a joint inspection process for funded housing projects.

2. **Advisory Working Group**: An advisory group will be established to consult on the implementation of the memorandum. This group will include a diverse range of stakeholders, such as affordable housing nonprofits, housing finance agencies, builders, property managers, and residents of assisted housing.

3. **Reporting Requirements**: One year following enactment, HUD and USDA are required to submit a report to Congress with recommendations aimed at enhancing housing project efficiency without compromising safety, increasing long-term costs for residents, or weakening environmental standards.

Overall, the Act is designed to streamline processes and enhance collaboration between the two agencies, ultimately benefiting rural housing development.

Possible Impacts

The "Streamlining Rural Housing Act of 2025" could affect people in various ways. Here are three examples:

1. **Improved Access to Affordable Housing**: By streamlining the processes between the Department of Housing and Urban Development (HUD) and the Department of Agriculture (USDA), the legislation may lead to quicker approval and construction of housing projects in rural areas. This could increase the availability of affordable housing, benefiting low-income families and individuals who are in need of secure homes.

2. **Enhanced Collaboration Among Stakeholders**: The establishment of an advisory working group that includes diverse stakeholders (nonprofits, housing developers, public housing agencies, and residents) fosters collaboration and input from a broad range of perspectives. This could lead to more community-informed housing solutions and better alignment of projects with the needs of local populations, ensuring that developments are more effective and responsive to residents’ concerns.

3. **Environmental Protections and Safety Assurances**: The requirement for a memorandum of understanding that evaluates environmental assessments and maintains compliance with existing regulations ensures that housing projects do not compromise the safety and environmental standards that residents rely on. This could protect local ecosystems and the health of residents, as it aims to prevent any reduction in safety or increase in long-term costs associated with environmental degradation.

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 2423 Introduced in Senate (IS)]

<DOC>






119th CONGRESS
  1st Session
                                S. 2423

   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 SENATE OF THE UNITED STATES

                             July 23, 2025

 Mr. Moran (for himself, Mrs. Shaheen, Mr. Ricketts, and Mr. Gallego) 
introduced the following bill; which was read twice and referred to the 
            Committee on Banking, Housing, and Urban Affairs

_______________________________________________________________________

                                 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.
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