Bipartisan Efforts to Promote Rural Housing Reform in the U.S.
Between 2010 and 2020, rural areas across the United States witnessed only a modest increase of 1.7% in available housing units. Alarmingly, close to half of the states recorded a decline in housing stock during this period, raising concerns over the long-term viability of properties previously financed by the Rural Housing Service (RHS).
Legislative Initiatives to Address Housing Shortages
To tackle these issues, U.S. Senator Mike Rounds has emphasized the need for improved homeownership opportunities in rural regions, particularly in South Dakota. “Improving homeownership opportunities, particularly in rural areas, is critical for the wellbeing of South Dakota families,” Rounds stated. His support centers around the introduction of the Rural Housing Service Reform Act, which aims to streamline federal housing programs and eliminate barriers to ownership.
According to Rounds, the proposed legislation also intends to preserve the existing stock of affordable housing and rental assistance programs in rural areas. He expressed his enthusiasm for collaborating with Senator Tina Smith and other colleagues to resolve pressing challenges surrounding affordable housing.
Bipartisan Support for Housing Solutions
Senator Smith highlighted the disproportionate impact of the national housing shortage on rural communities, noting that solutions must be prioritized for these regions. “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,” she stated.
The initial version of this bill was introduced in 2023 without any co-sponsors and did not advance past the Senate banking committee. However, the current version has gained traction, now having the support of nine co-sponsors from both political parties, including Senators Kevin Cramer, Mike Crapo, Steve Daines, John Fetterman, Jerry Moran, Jeanne Shaheen, Mark Warner, and Raphael Warnock.
Local Perspectives on Housing Needs
Lakota Vogel, the Executive Director of Four Bands Community Fund in South Dakota and a member of the South Dakota Native Homeownership Coalition, underscored the necessity of the legislation for increasing housing inventory and reducing costs. “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 pointed out. He stressed the importance of cutting through bureaucratic obstacles and encouraging public-private partnerships to enhance investment in rural housing.
Recent Legislative Activity
The Rural Housing Service Reform Act was referred back to the Senate banking committee on April 2. Recent weeks have seen lawmakers actively introducing various housing-related proposals, including the Neighborhood Homes Investment Act (NHIA), the Affordable Housing Credit Improvement Act, and the Housing Supply Frameworks Act, all targeting the critical housing supply challenges across the nation.
