may restructure such existing housing loans, as the Sec-
retary considers appropriate, for the purpose of ensuring 
that those projects have sufficient resources to preserve 
the projects to provide safe and affordable housing for low- 
income residents and farm laborers, by— 
‘‘(1) reducing or eliminating interest; 
‘‘(2) deferring loan payments; 
‘‘(3) subordinating, reducing, or reamortizing 
loan debt; 
‘‘(4) providing other financial assistance, in-
cluding advances, payments, and incentives (includ-
ing the ability of owners to obtain reasonable re-
turns on investment) required by the Secretary; and 
‘‘(5) permanently removing a portion of the 
housing units from income restrictions when sus-
tained vacancies have occurred. 
‘‘(d) RENEWAL OF RENTAL ASSISTANCE.— 
‘‘(1) IN GENERAL.—When the Secretary pro-
poses to restructure a loan or agrees to the proposal 
of an owner to restructure a loan pursuant to sub-
section (c), the Secretary shall offer to renew the 
rental assistance contract under section 521(a)(2) 
for a term that is the shorter of 20 years and the 
term of the restructured loan, subject to annual ap-
propriations, provided that the owner agrees to bring 
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the property up to such standards that will ensure 
maintenance of the property as decent, safe, and 
sanitary housing for the full term of the rental as-
sistance contract. 
‘‘(2) ADDITIONAL RENTAL ASSISTANCE.—With 
respect to a project described in paragraph (1), if 
rental assistance is not available for all households 
in the project for which the loan is being restruc-
tured pursuant to subsection (c), the Secretary may 
extend such additional rental assistance to unas-
sisted households at that project as is necessary to 
make the project safe and affordable to low-income 
households. 
‘‘(e) RESTRICTIVE USE AGREEMENTS.— 
‘‘(1) REQUIREMENT.—As part of the preserva-
tion and revitalization agreement for a project, the 
Secretary shall obtain a restrictive use agreement 
that is recorded and obligates the owner to operate 
the project in accordance with this title. 
‘‘(2) TERM.— 
‘‘(A) NO EXTENSION OF RENTAL ASSIST-
ANCE CONTRACT.—Except when the Secretary 
enters into a 20-year extension of the rental as-
sistance contract for a project, the term of the 
restrictive use agreement for the project shall 
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be consistent with the term of the restructured 
loan for the project. 
‘‘(B) EXTENSION OF RENTAL ASSISTANCE 
CONTRACT.—If the Secretary enters into a 20- 
year extension of the rental assistance contract 
for a project, the term of the restrictive use 
agreement for the project shall be for the longer 
of— 
‘‘(i) 20 years; or 
‘‘(ii) the remaining term of the loan 
for that project. 
‘‘(C) TERMINATION.—The Secretary may 
terminate the 20-year use restrictive use agree-
ment for a project before the end of the term 
of the agreement if the 20-year rental assist-
ance contract for the project with the owner is 
terminated at any time for reasons outside the 
control of the owner. 
‘‘(f) DECOUPLING OF RENTAL ASSISTANCE.— 
‘‘(1) RENEWAL OF RENTAL ASSISTANCE CON-
TRACT.—If the Secretary determines that a loan ma-
turing during the 4-year period beginning upon the 
provision of the notice required under subsection 
(b)(1) for a project cannot reasonably be restruc-
tured in accordance with subsection (c) because it is 
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not financially feasible or the owner does not agree 
with the proposed restructuring, and the project was 
operating with rental assistance under section 521 
and the recipient is a borrower under section 514 or 
515, the Secretary may renew the rental assistance 
contract, notwithstanding any requirement under 
section 521 that the recipient be a current borrower 
under section 514 or 515, for a term of 20 years, 
subject to annual appropriations. 
‘‘(2) ADDITIONAL RENTAL ASSISTANCE.—With 
respect to a project described in paragraph (1), if 
rental assistance is not available for all households 
in the project for which the loan is being restruc-
tured pursuant to subsection (c), the Secretary may 
extend such additional rental assistance to unas-
sisted households at that project as is necessary to 
make the project safe and affordable to low-income 
households. 
‘‘(3) RENTS.— 
‘‘(A) IN GENERAL.—Any agreement to ex-
tend the term of the rental assistance contract 
under section 521 for a project shall obligate 
the owner to continue to maintain the project 
as decent, safe, and sanitary housing and to op-
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erate the development as affordable housing in 
a manner that meets the goals of this title. 
‘‘(B) RENT
AMOUNTS.—Subject to sub-
paragraph (C), in setting rents, the Secretary— 
‘‘(i) shall determine the maximum ini-
tial rent based on current fair market 
rents established under section 8 of the 
United States Housing Act of 1937 (42 
U.S.C. 1437f); and 
‘‘(ii) may annually adjust the rent de-
termined under clause (i) by the operating 
cost adjustment factor as provided under 
section 524 of the Multifamily Assisted 
Housing Reform and Affordability Act of 
1997 (42 U.S.C. 1437f note). 
‘‘(C) HIGHER RENT.— 
‘‘(i) IN GENERAL.—Subparagraph (B) 
shall not apply if the Secretary determines 
that the budget-based needs of a project 
require a higher rent than the rent de-
scribed in subparagraph (B). 
‘‘(ii) RENT.—If the Secretary makes a 
positive determination under clause (i), the 
Secretary may approve a budget-based rent 
level for the project. 
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‘‘(4) CONDITIONS FOR APPROVAL.—Before the 
approval of a rental assistance contract authorized 
under this section, the Secretary shall require, 
through an annual notice in the Federal Register, 
the owner to submit to the Secretary a plan that 
identifies financing sources and a timetable for ren-
ovations and improvements determined to be nec-
essary by the Secretary to maintain and preserve the 
project. 
‘‘(g) MULTIFAMILY HOUSING TRANSFER TECHNICAL 
ASSISTANCE.—Under the program under this section, the 
Secretary may provide grants to qualified nonprofit orga-
nizations and public housing agencies to provide technical 
assistance, including financial and legal services, to bor-
rowers under loans under this title for multifamily housing 
to facilitate the acquisition or preservation of such multi-
family housing properties in areas where the Secretary de-
termines there is a risk of loss of affordable housing. 
‘‘(h) ADMINISTRATIVE EXPENSES.—Of any amounts 
made available for the program under this section for any 
fiscal year, the Secretary may use not more than 
$1,000,000 for administrative expenses for carrying out 
such program. 
‘‘(i) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated for the program under this 
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section such sums as may be necessary for each of fiscal 
years 2026 through 2030. 
‘‘(j) RULEMAKING.— 
‘‘(1) IN GENERAL.—Not later than 180 days 
after the date of enactment of the Rural Housing 
Service Reform Act of 2025, the Secretary shall— 
‘‘(A) publish an advance notice of proposed 
rulemaking; and 
‘‘(B) consult with appropriate stake-
holders. 
‘‘(2) INTERIM FINAL RULE.—Not later than 1 
year after the date of enactment of the Rural Hous-
ing Service Reform Act of 2025, the Secretary shall 
publish an interim final rule to carry out this sec-
tion.’’. 
SEC. 202. RENTAL ASSISTANCE CONTRACT AUTHORITY. 
Section 521(d) of the Housing Act of 1949 (42 
U.S.C. 1490a(d)), as amended by section 101(b), is 
amended— 
(1) in paragraph (1)— 
(A) by redesignating subparagraphs (B) 
and (C) as subparagraphs (C) and (D), respec-
tively; 
(B) by inserting after subparagraph (A) 
the following: 
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‘‘(B) upon request of an owner of a project fi-
nanced under section 514 or 515, the Secretary is 
authorized to enter into renewal of such agreements 
for a period of 20 years or the term of the loan, 
whichever is shorter, subject to amounts made avail-
able in appropriations Acts;’’; 
(C) in subparagraph (C), as so redesig-
nated, by striking ‘‘subparagraph (A)’’ and in-
serting ‘‘subparagraphs (A) and (B)’’; and 
(D) in subparagraph (D), as so redesig-
nated, by striking ‘‘subparagraphs (A) and 
(B)’’ and inserting ‘‘subparagraphs (A), (B), 
and (C)’’; 
(2) in paragraph (2), by striking ‘‘shall’’ and 
inserting ‘‘may’’; and 
(3) by adding at the end the following: 
‘‘(4) In the case of any rental assistance contract au-
thority that becomes available because of the termination 
of assistance on behalf of an assisted family— 
‘‘(A) at the option of the owner of the rental 
project, the Secretary shall provide the owner a pe-
riod of not more than 6 months before unused as-
sistance is made available pursuant to subparagraph 
(B) during which the owner may use such assistance 
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authority to provide assistance on behalf of an eligi-
ble unassisted family that— 
‘‘(i) is residing in the same rental project 
in which the assisted family resided before the 
termination; or 
‘‘(ii) newly occupies a dwelling unit in the 
rental project during that 6-month period; and 
‘‘(B) except for assistance used as provided in 
subparagraph (A), the Secretary shall use such re-
maining authority to provide assistance on behalf of 
eligible families residing in other rental projects 
originally financed under section 514, 515, or 516.’’. 
TITLE III—SECTION 504 LOANS 
AND GRANTS 
SEC. 301. MODIFICATIONS TO LOANS AND GRANTS FOR 
MINOR IMPROVEMENTS TO FARM HOUSING 
AND BUILDINGS; INCOME ELIGIBILITY. 
Section 504(a) of the Housing Act of 1949 (42 
U.S.C. 1474(a)) is amended— 
(1) in the first sentence, by inserting ‘‘and may 
make a loan to an eligible low-income applicant’’ 
after ‘‘applicant’’; 
(2) by inserting ‘‘Not less than 60 percent of 
loan funds made available under this section shall be 
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reserved and made available for very low-income ap-
plicants.’’ after the first sentence; and 
(3) 
by 
striking 
‘‘$7,500’’ 
and 
inserting 
‘‘$15,000’’. 
TITLE IV—RURAL COMMUNITY 
DEVELOPMENT 
INITIATIVE 
GRANTS 
SEC. 401. RURAL COMMUNITY DEVELOPMENT INITIATIVE. 
Subtitle E of the Consolidated Farm and Rural De-
velopment Act (7 U.S.C. 2009 et seq.) is amended by add-
ing at the end the following: 
‘‘SEC. 381O. RURAL COMMUNITY DEVELOPMENT INITIA-
TIVE. 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) ELIGIBLE ENTITY.—The term ‘eligible en-
tity’ means— 
‘‘(A) a private, nonprofit community-based 
housing or community development organiza-
tion; 
‘‘(B) a rural community; or 
‘‘(C) a federally recognized Indian Tribe. 
‘‘(2) ELIGIBLE INTERMEDIARY.—The term ‘eli-
gible intermediary’ means a qualified— 
‘‘(A) private, nonprofit organization; or 
‘‘(B) public organization. 
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‘‘(b) ESTABLISHMENT.—The Secretary shall estab-
lish a Rural Community Development Initiative, under 
which the Secretary shall provide grants to eligible inter-
mediaries to carry out programs to provide financial and 
technical assistance to eligible entities to develop the ca-
pacity and ability of eligible entities to carry out projects 
to improve housing, community facilities, and community 
and economic development projects in rural areas. 
‘‘(c) AMOUNT OF GRANTS.—The amount of a grant 
provided to an eligible intermediary under this section 
shall be not more than $250,000. 
‘‘(d) MATCHING FUNDS.— 
‘‘(1) IN GENERAL.—An eligible intermediary re-
ceiving a grant under this section shall provide 
matching funds from other sources, including Fed-
eral funds for related activities, in an amount not 
less than the amount of the grant. 
‘‘(2) WAIVER.—The Secretary may waive para-
graph (1) with respect to a project that would be 
carried out in a persistently poor rural region, as de-
termined by the Secretary.’’. 
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TITLE V—REPORTS 
SEC. 501. ANNUAL REPORT ON RURAL HOUSING PRO-
GRAMS. 
Title V of the Housing Act of 1949 (42 U.S.C. 1471 
et seq.), as amended by this Act, is amended by adding 
at the end the following: 
‘‘SEC. 546. ANNUAL REPORT. 
‘‘(a) IN GENERAL.—The Secretary shall submit to 
the appropriate committees of Congress and publish on 
the website of the Department of Agriculture an annual 
report on rural housing programs carried out under this 
title, which shall include significant details on the health 
of Rural Housing Service programs, including— 
‘‘(1) raw data sortable by programs and by re-
gion regarding loan performance; 
‘‘(2) the housing stock of those programs, in-
cluding information on why properties end participa-
tion in those programs, such as for maturation, pre-
payment, foreclosure, or other servicing issues; and 
‘‘(3) risk ratings for properties assisted under 
those programs. 
‘‘(b) PROTECTION OF INFORMATION.—The data in-
cluded in each report required under subsection (a) may 
be aggregated or anonymized to protect participant finan-
cial or personal information.’’. 
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SEC. 502. GAO REPORT ON RURAL HOUSING SERVICE 
TECHNOLOGY. 
Not later than 1 year after the date of enactment 
of this Act, the Comptroller General of the United States 
shall submit to Congress a report that includes— 
(1) an analysis of how the outdated technology 
used by the Rural Housing Service impacts partici-
pants in the programs of the Rural Housing Service; 
(2) an estimate of the amount of funding that 
is needed to modernize the technology used by the 
Rural Housing Service; and 
(3) an estimate of the number and type of new 
employees the Rural Housing Service needs to mod-
ernize the technology used by the Rural Housing 
Service. 
TITLE VI—RURAL HOUSING 
VOUCHER PROGRAM 
SEC. 601. ADJUSTMENT TO RURAL DEVELOPMENT VOUCH-
ER AMOUNT. 
(a) IN GENERAL.—Not later than 2 years after the 
date of enactment of this Act, the Secretary of Agriculture 
shall issue regulations to establish a process for adjusting 
the voucher amount provided under section 542 of the 
Housing Act of 1949 (42 U.S.C. 1490r) after the issuance 
of the voucher following an interim or annual review of 
the amount of the voucher. 
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(b) INTERIM REVIEW.—The interim review described 
in subsection (a) shall, at the request of a tenant, allow 
for a recalculation of the voucher amount when the tenant 
experiences a reduction in income, change in family com-
position, or change in rental rate. 
(c) ANNUAL REVIEW.— 
(1) IN GENERAL.—The annual review described 
in subsection (a) shall require tenants to annually 
recertify the family composition of the household 
and that the family income of the household does 
not exceed 80 percent of the area median income at 
a time determined by the Secretary of Agriculture. 
(2) CONSIDERATIONS.—If a tenant does not re-
certify the family composition and family income of 
the household within the time frame required under 
paragraph (1), the Secretary of Agriculture— 
(A) shall consider whether extenuating cir-
cumstances caused the delay in recertification; 
and 
(B) may alter associated consequences for 
the failure to recertify based on those cir-
cumstances. 
(3) EFFECTIVE DATE.—Following the annual 
review of a voucher under subsection (a), the up-
dated voucher amount shall be effective on the 1st 
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day of the month following the expiration of the 
voucher. 
(d) DEADLINE.—The process established under sub-
section (a) shall require the Secretary of Agriculture to 
review and update the voucher amount described in sub-
section (a) for a tenant not later than 60 days before the 
end of the voucher term. 
SEC. 602. ELIGIBILITY FOR RURAL HOUSING VOUCHERS. 
Section 542 of the Housing Act of 1949 (42 U.S.C. 
1490r) is amended by adding at the end the following: 
‘‘(c) ELIGIBILITY
OF HOUSEHOLDS
IN SECTIONS 
514, 515, AND 516 PROJECTS.—The Secretary may pro-
vide rural housing vouchers under this section for any low- 
income household (including those not receiving rental as-
sistance) residing for a term longer than the remaining 
term of their lease that is in effect on the date of prepay-
ment, foreclosure, or mortgage maturity, in a property fi-
nanced with a loan under section 514 or 515 or a grant 
under section 516 that has— 
‘‘(1) been prepaid with or without restrictions 
imposed by the Secretary pursuant to section 
502(c)(5)(G)(ii)(I); 
‘‘(2) been foreclosed; or 
‘‘(3) matured after September 30, 2005.’’. 
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SEC. 603. AMOUNT OF VOUCHER ASSISTANCE. 
Notwithstanding any other provision of law, in the 
case of any rural housing voucher provided pursuant to 
section 542 of the Housing Act of 1949 (42 U.S.C. 
1490r), the amount of the monthly assistance payment for 
the household on whose behalf the assistance is provided 
shall be determined as provided in subsection (a) of such 
section 542, including providing for interim and annual 
review of the voucher amount in the event of a change 
in household composition or income or rental rate. 
TITLE VII—TRANSFERS TO 
NONPROFIT ORGANIZATIONS 
SEC. 701. TRANSFER OF MULTIFAMILY RURAL HOUSING 
PROJECTS. 
Section 515 of the Housing Act of 1949 (42 U.S.C. 
1485) is amended— 
(1) in subsection (h), by adding at the end the 
following: 
‘‘(3) TRANSFER
TO
NONPROFIT
ORGANIZA-
TIONS.—A nonprofit or public body purchaser, in-
cluding a limited partnership with a general partner 
with the principal purpose of providing affordable 
housing, may purchase a property for which a loan 
is made or insured under this section that has re-
ceived a market value appraisal, without addressing 
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rehabilitation needs at the time of purchase, if the 
purchaser— 
‘‘(A) makes a commitment to address re-
habilitation needs during ownership and long- 
term use restrictions on the property; and 
‘‘(B) at the time of purchase, accepts long- 
term use restrictions on the property.’’; and 
(2) in subsection (w)(1), in the first sentence in 
the matter preceding subparagraph (A), by striking 
‘‘9 percent’’ and inserting ‘‘25 percent’’. 
TITLE VIII—SECTION 502 LOANS 
AND GUARANTEES 
SEC. 801. EXTENSION OF LOAN TERM. 
(a) IN GENERAL.—Section 502(a)(2) of the Housing 
Act of 1949 (42 U.S.C. 1472(a)(2)) is amended— 
(1) by inserting ‘‘(A)’’ before ‘‘The Secretary’’; 
(2) in subparagraph (A), as so designated, by 
striking ‘‘paragraph’’ and inserting ‘‘subparagraph’’; 
and 
(3) by adding at the end the following: 
‘‘(B) The Secretary may refinance or modify 
the period of any loan, including any refinanced 
loan, made under this section in accordance with 
terms and conditions as the Secretary shall pre-
scribe, but in no event shall the total term of the 
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