Rural Housing Service Reform Act of 2025

Key Points

• This bill aims to modernize the Rural Housing Service by upgrading its technology and streamlining how it handles loans and grants. It authorizes $200 million every year through 2030 to help keep rural rental properties affordable and safe, even after their original government loans are paid off.
• For people looking to buy or fix a home, the bill extends the maximum length of certain rural home loans to 40 years, which can help lower monthly payments. It also doubles the maximum grant for minor home repairs—such as fixing a roof or making a home accessible for seniors—from $7,500 to $15,000.
• The policy creates a $50 million program specifically for Native American, Alaska Native, and Native Hawaiian families. This money would be distributed through local Native-owned financial institutions to help more people in tribal areas become homeowners.
• To protect renters, the bill makes it easier for families to keep their housing vouchers if their apartment building is foreclosed on or the owner's mortgage ends. It also requires the government to update voucher amounts more quickly if a family’s income drops or their rent goes up.
• The bill supports 'accessory dwelling units' (like a small cottage in a backyard) by allowing homeowners to use the rent from those units to help qualify for a loan. It also removes rules that currently block people from running licensed childcare businesses out of homes with these federal loans.