Ricketts Introduces the Streamlining Rural Housing Act
WASHINGTON, D.C. – Today, U.S. Senator Pete Ricketts (R-NE), along with Senators Jerry Moran (R-KS), Jeanne Shaheen (D-NH), and Ruben Gallego (D-AZ), introduced the Streamlining Rural Housing Act. The bill directs the U.S. Department of Housing & Urban Development (HUD) and the U.S. Department of Agriculture (USDA) to establish a memorandum of understanding to evaluate the feasibility of joint environmental review and inspection processes. By streamlining the review and inspection processes between HUD and USDA, this bill would make rural housing development more efficient for home builders, affordable housing non-profits, and state housing finance agencies.
“Duplicative red tape and burdensome regulations create additional costs and deter much-needed investments in rural affordable housing,” said Ricketts. “The Streamlining Rural Housing Act is the first step to enhance efficiency and eliminate conflicting requirements that delay approvals so that we can build more housing in rural Nebraska. When I was Governor of Nebraska, our state created a rural workforce housing fund to help administer support to communities for rural housing needs, like construction costs, down payment assistance, and technical assistance.”
“Across Kansas, the demand for rural housing has been on the rise, and it’s important that we find innovative solutions to address this issue,” said Moran. “Streamlining rural housing regulations between HUD and USDA will simplify the regulatory process for developers, allowing them to more efficiently address the growing housing needs in Kansas and across the country.”
“To address the shortage of quality, affordable housing in rural areas, federal regulations need to work for communities rather than against them,” said Senator Shaheen. “I’m glad to join my colleagues in introducing bipartisan legislation that would improve and streamline environmental reviews and housing unit inspections so that we can build more homes and lower costs where it’s needed most.”
“Americans are facing an affordable housing crisis. We need to build more housing and build it fast to bring down costs and get more people into homes,” said Gallego. “Government should be part of the solution, but right now it’s part of the problem. By reducing red tape and streamlining redundant processes, this bipartisan bill will accelerate construction, lower costs, and get more desperately needed homes on the market.”
The Streamlining Rural Housing Act would direct the U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of Agriculture (USDA) to:
- Create a Memorandum of Understanding (MOU) to evaluate categorical exclusion under the environmental review process for housing projects that use combined funding;
- Create an MOU to develop a process for designating a lead agency.
- This process will streamline adoption of Environmental Impact Statements and Environment Assessments approved by the other Department to construct housing projects funded by both agencies;
- Create an MOU to evaluate the feasibility of a joint inspection process for housing projects that use combined funding;
- Establish an advisory working group to consult on the MOUs consisting of:
- Affordable housing non-profits;
- State housing and housing finance agencies;
- Non-profit and for-profit home builders and housing developers;
- Property management companies;
- Owners of multifamily properties;
- Public housing agencies;
- Residents in housing assisted by HUD and USDA;
- Housing contract administrators.
“The Council for Affordable and Rural Housing (CARH) applauds the efforts of Senators Moran, Ricketts, Shaheen, and Gallego in introducing this important legislation which will help streamline program requirements at the Department of Housing and Urban Development (HUD) and the United States Department of Agriculture’s Rural Development (RD) programs,” said Colleen Fisher, Executive Director of the Council for Affordable and Rural Housing (CARH). “Many times when housing developers and owners are operating a property here is a need to have multiple sources of funding so that the property can cash flow and rents are at levels that low-income residents can afford. When this occurs, the agencies require separate if not identical inspections, somewhat negating the purpose of having the multiple layers of funding, thus increasing regulatory costs. By requiring one inspection, operating costs will be reduced or redirected toward services on properties. The approach envisioned in the bill has been supported by several different Administrations, with the goal of reducing regulatory burdens and improving the delivery of affordable housing programs.”
BACKGROUND
Often, when a housing project draws federal funding from Department of Housing and Urban Development (HUD) and the U.S. Department of Agriculture (USDA) Rural Development, one has to follow separate processes for environmental review and housing inspections for both agencies. This can incur more costs, lead to delays in project completion, and present challenges in getting over excessive bureaucratic procedures. This is burdensome especially at a time when housing needs in rural America are growing and existing housing supply is aging. Memoranda of Understanding (MOUs) are an effective way to address duplicative compliance requirements and regulatory misalignment across different federal, state, and local agencies.
Full text of the legislation can be found here.