I 
118TH CONGRESS 
1ST SESSION H. R. 6785 
To reform rural housing programs, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
DECEMBER 14, 2023 
Mr. LUETKEMEYER (for himself and Mr. CLEAVER) introduced the following 
bill; which was referred to the Committee on Financial Services, and in 
addition to the Committee on Agriculture, for a period to be subsequently 
determined by the Speaker, in each case for consideration of such provi-
sions as fall within the jurisdiction of the committee concerned 
A BILL 
To reform rural housing programs, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Rural Housing Service Reform Act of 2023’’. 
(b) TABLE OF CONTENTS.—The table of contents of 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
TITLE I—STREAMLINING AND UPDATES 
Sec. 101. Application of multifamily mortgage foreclosure procedures to multi-
family mortgages held by the Secretary of Agriculture and 
preservation of the rental assistance contract upon foreclosure. 
VerDate Sep 11 2014 
20:25 Jan 04, 2024
Jkt 049200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6211
E:\BILLS\H6785.IH
H6785
Sec. 102. Study on rural housing loans for housing for low- and moderate-in-
come families. 
Sec. 103. Authorization of appropriations for staffing needs and information 
technology upgrades. 
TITLE II—RURAL HOUSING PRESERVATION AND REVITALIZATION 
Sec. 201. Permanent establishment of housing preservation and revitalization 
program. 
Sec. 202. Eligibility for rural housing vouchers. 
Sec. 203. Amount of voucher assistance. 
Sec. 204. Rental assistance contract authority. 
Sec. 205. Funding for technical improvements. 
TITLE III—NATIVE CDFI RELENDING 
Sec. 301. Native CDFI relending program. 
TITLE IV—SECTION 504 LOANS AND GRANTS 
Sec. 401. Modifications to loans and grants for minor improvements to farm 
housing and buildings. 
TITLE V—RURAL COMMUNITY DEVELOPMENT INITIATIVE 
GRANTS 
Sec. 501. Rural Community Development Initiative. 
TITLE VI—REPORTS 
Sec. 601. Annual report on rural housing programs. 
Sec. 602. GAO report on Rural Housing Service technology. 
TITLE VII—RURAL HOUSING VOUCHER PROGRAM 
Sec. 701. Adjustment to rural development voucher amount. 
TITLE VIII—TRANSFERS TO NONPROFIT ORGANIZATIONS 
Sec. 801. Transfer of multifamily rural housing projects. 
TITLE IX—TERM OF DIRECT LOANS MADE BY THE RURAL 
HOUSING SERVICE 
Sec. 901. Extension of loan term. 
VerDate Sep 11 2014 
20:25 Jan 04, 2024
Jkt 049200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6211
E:\BILLS\H6785.IH
H6785
TITLE I—STREAMLINING AND 
UPDATES 
SEC. 101. APPLICATION OF MULTIFAMILY MORTGAGE 
FORECLOSURE 
PROCEDURES 
TO 
MULTI-
FAMILY MORTGAGES HELD BY THE SEC-
RETARY OF AGRICULTURE AND PRESERVA-
TION OF THE RENTAL ASSISTANCE CON-
TRACT UPON FORECLOSURE. 
(a) MULTIFAMILY MORTGAGE PROCEDURES.—Sec-
tion 363 of the Multifamily Mortgage Foreclosure Act of 
1981 (12 U.S.C. 3702) is amended— 
(1) in paragraph (2)— 
(A) in subparagraph (D), by striking 
‘‘and’’ at the end; 
(B) in subparagraph (E), by striking the 
period at the end and inserting ‘‘; or’’; and 
(C) by adding at the end the following: 
‘‘(F) section 514, 515, or 538 of the Hous-
ing Act of 1949 (42 U.S.C. 1484, 1485, 
1490p).’’; and 
(2) in paragraph (10)— 
(A) by striking ‘‘means the Secretary’’ and 
inserting the following: ‘‘means— 
‘‘(A) the Secretary’’; 
VerDate Sep 11 2014 
20:25 Jan 04, 2024
Jkt 049200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H6785.IH
H6785
(B) in subparagraph (A), as so designated, 
by striking the period at the end and inserting 
‘‘, with respect to a multifamily mortgage de-
scribed in subparagraph (A), (B), (C), (D), or 
(E) of paragraph (2); and’’; and 
(C) by adding at the end the following: 
‘‘(B) the Secretary of Agriculture, with re-
spect to a multifamily mortgage described in 
paragraph (2)(F).’’. 
(b) PRESERVATION OF CONTRACT.—Section 521(d) 
of the Housing Act of 1949 (42 U.S.C. 1490a(d)) is 
amended by adding at the end the following: 
‘‘(3) Notwithstanding any other provision of law in 
managing and disposing of any multifamily property that 
is owned or has a mortgage held by the Secretary, and 
during the process of foreclosure on any property with a 
contract for rental assistance under this section— 
‘‘(A) the Secretary shall maintain any rental as-
sistance payments that are attached to any dwelling 
units in the property; and 
‘‘(B) the rental assistance contract may be used 
to provide further assistance to existing projects 
under 514, 515, or 516.’’. 
VerDate Sep 11 2014 
20:25 Jan 04, 2024
Jkt 049200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H6785.IH
H6785
SEC. 102. STUDY ON RURAL HOUSING LOANS FOR HOUSING 
FOR LOW- AND MODERATE-INCOME FAMI-
LIES. 
Not later than 6 months after the date of enactment 
of this Act, the Secretary of Agriculture shall conduct a 
study and submit to Congress a publicly available report 
on the loan program under section 521 of the Housing 
Act of 1949 (42 U.S.C. 1490a), including— 
(1) the total amount provided by the Secretary 
in subsidies under such section 521 to borrowers 
with loans made pursuant to section 502 of such Act 
(42 U.S.C. 1472); 
(2) how much of the subsidies described in 
paragraph (1) are being recaptured; and 
(3) the amount of time and costs associated 
with recapturing those subsidies. 
SEC. 
103. 
AUTHORIZATION 
OF 
APPROPRIATIONS 
FOR 
STAFFING NEEDS AND INFORMATION TECH-
NOLOGY UPGRADES. 
There is authorized to be appropriated to the Sec-
retary of Agriculture for each of fiscal years 2024 through 
2028 such sums as may be necessary for increased staff-
ing needs and information technology upgrades to support 
all Rural Housing Service programs. 
VerDate Sep 11 2014 
20:25 Jan 04, 2024
Jkt 049200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H6785.IH
H6785
TITLE 
II—RURAL 
HOUSING 
PRESERVATION 
AND 
REVI-
TALIZATION 
SEC. 201. PERMANENT ESTABLISHMENT OF HOUSING PRES-
ERVATION AND REVITALIZATION PROGRAM. 
Title V of the Housing Act of 1949 (42 U.S.C. 1471 
et seq.) is amended by adding at the end the following: 
‘‘SEC. 545. HOUSING PRESERVATION AND REVITALIZATION 
PROGRAM. 
‘‘(a) ESTABLISHMENT.—The Secretary shall carry 
out a program under this section for the preservation and 
revitalization of multifamily rental housing projects fi-
nanced under section 514, 515, or 516. 
‘‘(b) NOTICE OF MATURING LOANS.— 
‘‘(1) TO
OWNERS.—On an annual basis, the 
Secretary shall provide written notice to each owner 
of a property financed under section 514, 515, or 
516 that will mature within the 4-year period begin-
ning upon the provision of the notice, setting forth 
the options and financial incentives that are avail-
able to facilitate the extension of the loan term or 
the option to decouple a rental assistance contract 
pursuant to subsection (f). 
‘‘(2) TO TENANTS.— 
VerDate Sep 11 2014 
20:25 Jan 04, 2024
Jkt 049200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H6785.IH
H6785
‘‘(A) IN GENERAL.—On an annual basis, 
for each property financed under section 514, 
515, or 516, not later than the date that is 2 
years before the date that the loan will mature, 
the Secretary shall provide written notice to 
each household residing in the property that in-
forms them of— 
‘‘(i) the date of the loan maturity; 
‘‘(ii) the possible actions that may 
happen with respect to the property upon 
that maturity; and 
‘‘(iii) how to protect their right to re-
side in federally assisted housing, or how 
to secure housing voucher, after that ma-
turity. 
‘‘(B) LANGUAGE.—Notice under this para-
graph shall be provided in plain English and 
shall be translated to other languages in the 
case of any property located in an area in which 
a significant number of residents speak such 
other languages. 
‘‘(c) LOAN RESTRUCTURING.—Under the program 
under this section, in any circumstance in which the Sec-
retary proposes a restructuring to an owner or an owner 
proposes a restructuring to the Secretary, the Secretary 
VerDate Sep 11 2014 
20:25 Jan 04, 2024
Jkt 049200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H6785.IH
H6785
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 20-year term that is subject to annual appro-
priations, provided that the owner agrees to bring 
the property up to such standards that will ensure 
VerDate Sep 11 2014 
20:25 Jan 04, 2024
Jkt 049200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H6785.IH
H6785
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 
VerDate Sep 11 2014 
20:25 Jan 04, 2024
Jkt 049200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H6785.IH
H6785
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 matur-
ing loan for a project cannot reasonably be restruc-
tured in accordance with subsection (c) because it is 
not financially feasible or the owner does not agree 
with the proposed restructuring, and the project was 
VerDate Sep 11 2014 
20:25 Jan 04, 2024
Jkt 049200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\BILLS\H6785.IH
H6785
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 provision of section 
521, for a term, subject to annual appropriations, of 
20 years. 
‘‘(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.—Any agreement to extend the 
term of the rental assistance contract under section 
521 for a project shall obligate the owner to con-
tinue to maintain the project as decent, safe and 
sanitary housing and to operate the development as 
affordable housing in a manner that meets the goals 
of this title, except that the Secretary shall establish 
standards for the setting of rents. 
‘‘(4) CONDITIONS FOR APPROVAL.— 
VerDate Sep 11 2014 
20:25 Jan 04, 2024
Jkt 049200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6201
E:\BILLS\H6785.IH
H6785
‘‘(A) PLAN.—Before the approval of a 
rental assistance contract authorized under this 
section, the Secretary shall require the owner to 
submit to the Secretary a plan that identifies fi-
nancing sources and a timetable for renovations 
and improvements determined to be necessary 
by the Secretary to maintain and preserve the 
project. 
‘‘(B) AUTOMATIC
APPROVAL.—If a plan 
submitted under subparagraph (A) is not acted 
upon by the Secretary within 30 days of the 
submission, the rental assistance contract is 
automatically approved for not more than a 1- 
year period. 
‘‘(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 
VerDate Sep 11 2014 
20:25 Jan 04, 2024
Jkt 049200
PO 00000
Frm 00012
Fmt 6652
Sfmt 6201
E:\BILLS\H6785.IH
H6785
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 
section $200,000,000 for each of fiscal years 2024 
through 2028. 
‘‘(j) RULEMAKING.— 
‘‘(1) IN GENERAL.—Not later than 180 days 
after the date of enactment of the Rural Housing 
Service Reform Act of 2023, 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 2023, the Secretary shall 
publish an interim final rule to carry out this sec-
tion.’’. 
SEC. 202. 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-
VerDate Sep 11 2014 
20:25 Jan 04, 2024
Jkt 049200
PO 00000
Frm 00013
Fmt 6652
Sfmt 6201
E:\BILLS\H6785.IH
H6785
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 mortgage 
maturity, in a property financed 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.’’. 
SEC. 203. 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. 
SEC. 204. 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— 
VerDate Sep 11 2014 
20:25 Jan 04, 2024
Jkt 049200
PO 00000
Frm 00014
Fmt 6652
Sfmt 6201
E:\BILLS\H6785.IH
H6785
(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: 
‘‘(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— 
VerDate Sep 11 2014 
20:25 Jan 04, 2024
Jkt 049200
PO 00000
Frm 00015
Fmt 6652
Sfmt 6201
E:\BILLS\H6785.IH
H6785
‘‘(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 
authority to provide assistance on behalf of an eligi-
ble unassisted family that— 
‘‘(i) is residing in the same rental project 
that the assisted family resided before the ter-
mination; 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.’’. 
SEC. 205. FUNDING FOR TECHNICAL IMPROVEMENTS. 
(a) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated to the Secretary of Agri-
culture such sums as may be necessary for fiscal year 
2024 for improving the technology of the Department of 
Agriculture used to process and manage housing loans. 
(b) TIMELINE.—The improvements required under 
subsection (a) shall be made within the 5-year period be-
VerDate Sep 11 2014 
20:25 Jan 04, 2024
Jkt 049200
PO 00000
Frm 00016
Fmt 6652
Sfmt 6201
E:\BILLS\H6785.IH
H6785
ginning upon the appropriation of amounts under sub-
section (a), and those amounts shall remain available until 
the expiration of that 5-year period. 
TITLE III—NATIVE CDFI 
RELENDING 
SEC. 301. NATIVE CDFI RELENDING PROGRAM. 
Section 502 of the Housing Act of 1949 (42 U.S.C. 
1472) is amended by adding at the end the following: 
‘‘(j) SET ASIDE FOR NATIVE COMMUNITY DEVELOP-
MENT FINANCIAL INSTITUTIONS.— 
‘‘(1) DEFINITIONS.—In this subsection— 
‘‘(A) the term ‘Alaska Native’ has the 
meaning given the term ‘Native’ in section 3(b) 
of the Alaska Native Claims Settlement Act (43 
U.S.C. 1602(b)); 
‘‘(B) the term ‘appropriate congressional 
committees’ means— 
‘‘(i) the Committee on Agriculture of 
the Senate; 
‘‘(ii) the Committee on Indian Affairs 
of the Senate; 
‘‘(iii) the Committee on Banking, 
Housing, and Urban Affairs of the Senate; 
‘‘(iv) the Committee on Agriculture of 
the House of Representatives; 
VerDate Sep 11 2014 
20:25 Jan 04, 2024
Jkt 049200
PO 00000
Frm 00017
Fmt 6652
Sfmt 6201
E:\BILLS\H6785.IH
H6785
‘‘(v) the Committee on Natural Re-
sources of the House of Representatives; 
and 
‘‘(vi) the Committee on Financial 
Services of the House of Representatives; 
‘‘(C) the term ‘community development fi-
nancial institution’ has the meaning given the 
term in section 103 of the Community Develop-
ment Banking and Financial Institutions Act of 
1994 (12 U.S.C. 4702); 
‘‘(D) the term ‘Indian Tribe’ has the 
meaning given the term ‘Indian tribe’ in section 
4 of the Native American Housing Assistance 
and Self-Determination Act of 1996 (25 U.S.C. 
4103); 
‘‘(E) the term ‘Native community develop-
ment financial institution’ means an entity— 
‘‘(i) that has been certified as a com-
munity development financial institution by 
the Secretary of the Treasury; 
‘‘(ii) that is not less than 51 percent 
owned or controlled by members of Indian 
Tribes, Alaska Native communities, or Na-
tive Hawaiian communities; and 
VerDate Sep 11 2014 
20:25 Jan 04, 2024
Jkt 049200
PO 00000
Frm 00018
Fmt 6652
Sfmt 6201
E:\BILLS\H6785.IH
H6785
‘‘(iii) for which not less than 51 per-
cent of the activities of the entity serve In-
dian Tribes, Alaska Native communities, 
or Native Hawaiian communities; 
‘‘(F) the term ‘Native Hawaiian’ has the 
meaning given the term in section 801 of the 
Native American Housing Assistance and Self- 
Determination Act of 1996 (25 U.S.C. 4221); 
and 
‘‘(G) the term ‘priority Tribal land’ 
means— 
‘‘(i) any land located within the 
boundaries of— 
‘‘(I) an Indian reservation, pueb-
lo, or rancheria; or 
‘‘(II) a former reservation within 
Oklahoma; 
‘‘(ii) any land not located within the 
boundaries of an Indian reservation, pueb-
lo, or rancheria, the title to which is held— 
‘‘(I) in trust by the United States 
for the benefit of an Indian Tribe or 
an individual Indian; 
‘‘(II) by an Indian Tribe or an 
individual Indian, subject to restric-
VerDate Sep 11 2014 
20:25 Jan 04, 2024
Jkt 049200
PO 00000
Frm 00019
Fmt 6652
Sfmt 6201
E:\BILLS\H6785.IH
H6785
tion against alienation under laws of 
the United States; or 
‘‘(III) by a dependent Indian 
community; 
‘‘(iii) any land located within a region 
established pursuant to section 7(a) of the 
Alaska Native Claims Settlement Act (43 
U.S.C. 1606(a)); 
‘‘(iv) Hawaiian Home Lands, as de-
fined in section 801 of the Native Amer-
ican Housing Assistance and Self-Deter-
mination Act of 1996 (25 U.S.C. 4221); or 
‘‘(v) those areas or communities des-
ignated by the Assistant Secretary of In-
dian Affairs of the Department of the Inte-
rior that are near, adjacent, or contiguous 
to reservations where financial assistance 
and social service programs are provided to 
Indians because of their status as Indians. 
‘‘(2) PURPOSE.—The purpose of this subsection 
is to— 
‘‘(A) increase homeownership opportunities 
for Indian Tribes, Alaska Native Communities, 
and Native Hawaiian communities in rural 
areas; and 
VerDate Sep 11 2014 
20:25 Jan 04, 2024
Jkt 049200
PO 00000
Frm 00020
Fmt 6652
Sfmt 6201
E:\BILLS\H6785.IH
H6785
‘‘(B) provide capital to Native community 
development financial institutions to increase 
the number of mortgage transactions carried 
out by those institutions. 
‘‘(3) SET
ASIDE
FOR
NATIVE
CDFIS.—Of 
amounts appropriated to make direct loans under 
this section for each fiscal year, the Secretary may 
use not more than $50,000,000 to make direct loans 
to Native community development financial institu-
tions in accordance with this subsection. 
‘‘(4) APPLICATION REQUIREMENTS.—A Native 
community development financial institution desiring 
a loan under this subsection shall demonstrate that 
the institution— 
‘‘(A) can provide the non-Federal cost 
share required under paragraph (6); and 
‘‘(B) is able to originate and service loans 
for single family homes. 
‘‘(5) LENDING REQUIREMENTS.—A Native com-
munity development financial institution that re-
ceives a loan pursuant to this subsection shall— 
‘‘(A) use those amounts to make loans to 
borrowers— 
‘‘(i) who otherwise meet the require-
ments for a loan under this section; and 
VerDate Sep 11 2014 
20:25 Jan 04, 2024
Jkt 049200
PO 00000
Frm 00021
Fmt 6652
Sfmt 6201
E:\BILLS\H6785.IH
H6785
‘‘(ii) who— 
‘‘(I) are members of an Indian 
Tribe, an Alaska Native community, 
or a Native Hawaiian community; or 
‘‘(II) maintain a household in 
which not less 1 member is a member 
of an Indian Tribe, an Alaska Native 
community, or a Native Hawaiian 
community; and 
‘‘(B) in making loans under subparagraph 
(A), give priority to borrowers described in that 
subparagraph who are residing on priority Trib-
al land. 
‘‘(6) NON-FEDERAL COST SHARE.— 
‘‘(A) IN GENERAL.—A Native community 
development financial institution that receives a 
loan under this section shall be required to 
match not less than 20 percent of the amount 
received. 
‘‘(B) WAIVER.—In the case of a loan for 
which amounts are used to make loans to bor-
rowers described in paragraph (5)(B), the Sec-
retary shall waive the non-Federal cost share 
requirement described in subparagraph (A) with 
respect to those loan amounts. 
VerDate Sep 11 2014 
20:25 Jan 04, 2024
Jkt 049200
PO 00000
Frm 00022
Fmt 6652
Sfmt 6201
E:\BILLS\H6785.IH
H6785
‘‘(7) REPORTING.— 
‘‘(A) 
ANNUAL
REPORT
BY
NATIVE 
CDFIS.—Each Native community development 
financial institution that receives a loan pursu-
ant to this subsection shall submit an annual 
report to the Secretary on the lending activities 
of the institution using the loan amounts, which 
shall include— 
‘‘(i) a description of the outreach ef-
forts of the institution in local communities 
to identify eligible borrowers; 
‘‘(ii) a description of how the institu-
tion leveraged additional capital to reach 
prospective borrowers; 
‘‘(iii) the number of loan applications 
received, approved, and deployed; 
‘‘(iv) the average loan amount; 
‘‘(v) the number of finalized loans 
that were made on Tribal trust lands and 
not on Tribal trust lands; and 
‘‘(vi) the number of finalized loans 
that were made on priority Tribal land and 
not priority Tribal land. 
‘‘(B) ANNUAL
REPORT
TO
CONGRESS.— 
Not later than 1 year after the date of enact-
VerDate Sep 11 2014 
20:25 Jan 04, 2024
Jkt 049200
PO 00000
Frm 00023
Fmt 6652
Sfmt 6201
E:\BILLS\H6785.IH
H6785
ment of this subsection, and every year there-
after, the Secretary shall submit to the appro-
priate congressional communities a report that 
includes— 
‘‘(i) a list of loans made to Native 
community development financial institu-
tions pursuant to this subsection, including 
the name of the institution and the loan 
amount; 
‘‘(ii) the percentage of loans made 
under this section to members of Indian 
Tribes, Alaska Native communities, and 
Native Hawaiian communities, respectively, 
including a breakdown of loans made to 
households residing on and not on Tribal 
trust lands; and 
‘‘(iii) the average loan amount made 
by Native community development finan-
cial institutions pursuant to this sub-
section. 
‘‘(C) EVALUATION
OF
PROGRAM.—Not 
later than 3 years after the date of enactment 
of this subsection, the Secretary and the Sec-
retary of the Treasury shall conduct an evalua-
tion of and submit to the appropriate congres-
VerDate Sep 11 2014 
20:25 Jan 04, 2024
Jkt 049200
PO 00000
Frm 00024
Fmt 6652
Sfmt 6201
E:\BILLS\H6785.IH
H6785
sional committees a report on the program 
under this subsection, which shall— 
‘‘(i) evaluate the effectiveness of the 
program, including an evaluation of the de-
mand for loans under the program; and 
‘‘(ii) include recommendations relating 
to the program, including whether— 
‘‘(I) the program should be ex-
panded to such that all community de-
velopment financial institutions may 
make loans under the program to the 
borrowers described in paragraph (5); 
and 
‘‘(II) the set aside amount para-
graph (3) should be modified in order 
to match demand under the program. 
‘‘(8) GRANTS FOR OPERATIONAL SUPPORT.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
make grants to Native community development 
financial institutions that receive a loan under 
this section to provide operational support and 
other related services to those institutions, sub-
ject to— 
‘‘(i) the satisfactory performance, as 
determined by the Secretary, of a Native 
VerDate Sep 11 2014 
20:38 Jan 04, 2024
Jkt 049200
PO 00000
Frm 00025
Fmt 6652
Sfmt 6201
E:\BILLS\H6785.IH
H6785
community development financial institu-
tion in carrying out this section; and 
‘‘(ii) the availability of funding. 
‘‘(B) AMOUNT.—A Native community de-
velopment financial institution that receives a 
loan under this section shall be eligible to re-
ceive a grant described in subparagraph (A) in 
an amount equal to 20 percent of the direct 
loan amount received by the Native community 
development financial institution under the pro-
gram under this section as of the date on which 
the direct loan is awarded. 
‘‘(9) OUTREACH
AND
TECHNICAL
ASSIST-
ANCE.—There is authorized to be appropriated to 
the Secretary $1,000,000 for each of fiscal years 
2024, 2025, and 2026— 
‘‘(A) to provide technical assistance to Na-
tive community development financial institu-
tions— 
‘‘(i) relating to homeownership and 
other housing-related assistance provided 
by the Secretary; and 
‘‘(ii) to assist those institutions to 
perform outreach to eligible homebuyers 
VerDate Sep 11 2014 
20:25 Jan 04, 2024
Jkt 049200
PO 00000
Frm 00026
Fmt 6652
Sfmt 6201
E:\BILLS\H6785.IH
H6785
relating to the loan program under this 
section; or 
‘‘(B) to provide funding to a national orga-
nization representing Native American housing 
interests to perform outreach and provide tech-
nical assistance as described in clauses (i) and 
(ii), respectively, of subparagraph (A). 
‘‘(10) ADMINISTRATIVE COSTS.—In addition to 
other available funds, the Secretary may use not 
more than 3 percent of the amounts made available 
to carry out this subsection for administration of the 
programs established under this subsection.’’. 
TITLE IV—SECTION 504 LOANS 
AND GRANTS 
SEC. 401. MODIFICATIONS TO LOANS AND GRANTS FOR 
MINOR IMPROVEMENTS TO FARM HOUSING 
AND BUILDINGS. 
Section 504(a) of the Housing Act of 1949 (42 
U.S.C. 1474) is amended by striking ‘‘$7,500’’ and insert-
ing ‘‘$15,000’’. 
VerDate Sep 11 2014 
20:25 Jan 04, 2024
Jkt 049200
PO 00000
Frm 00027
Fmt 6652
Sfmt 6201
E:\BILLS\H6785.IH
H6785
TITLE 
V—RURAL 
COMMUNITY 
DEVELOPMENT 
INITIATIVE 
GRANTS 
SEC. 501. 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. 
‘‘(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 
VerDate Sep 11 2014 
20:25 Jan 04, 2024
Jkt 049200
PO 00000
Frm 00028
Fmt 6652
Sfmt 6201
E:\BILLS\H6785.IH
H6785
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.’’. 
TITLE VI—REPORTS 
SEC. 601. 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: 
VerDate Sep 11 2014 
20:25 Jan 04, 2024
Jkt 049200
PO 00000
Frm 00029
Fmt 6652
Sfmt 6201
E:\BILLS\H6785.IH
H6785
‘‘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.’’. 
SEC. 602. 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— 
VerDate Sep 11 2014 
20:25 Jan 04, 2024
Jkt 049200
PO 00000
Frm 00030
Fmt 6652
Sfmt 6201
E:\BILLS\H6785.IH
H6785
(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 VII—RURAL HOUSING 
VOUCHER PROGRAM 
SEC. 701. 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. 
(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 
VerDate Sep 11 2014 
20:25 Jan 04, 2024
Jkt 049200
PO 00000
Frm 00031
Fmt 6652
Sfmt 6201
E:\BILLS\H6785.IH
H6785
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. 
(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 
day of the month following the expiration of the 
voucher. 
VerDate Sep 11 2014 
20:25 Jan 04, 2024
Jkt 049200
PO 00000
Frm 00032
Fmt 6652
Sfmt 6201
E:\BILLS\H6785.IH
H6785
(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. 
TITLE VIII—TRANSFERS TO 
NONPROFIT ORGANIZATIONS 
SEC. 801. 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 
that is a nonprofit or is controlled by a nonprofit, 
may purchase a property for which a loan is made 
or insured under this section that has received a 
market value appraisal, without addressing rehabili-
tation needs at the time of purchase, if the pur-
chaser— 
‘‘(A) makes a commitment to address re-
habilitation needs during ownership and long- 
term use restrictions on the property; and 
VerDate Sep 11 2014 
20:25 Jan 04, 2024
Jkt 049200
PO 00000
Frm 00033
Fmt 6652
Sfmt 6201
E:\BILLS\H6785.IH
H6785
‘‘(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 ‘‘50 percent’’. 
TITLE 
IX—TERM 
OF 
DIRECT 
LOANS MADE BY THE RURAL 
HOUSING SERVICE 
SEC. 901. 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 extend the period of 
any 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 
loan exceed 40 years.’’. 
(b) APPLICATION.—The amendment made under 
subsection (a) shall apply with respect to loans made 
under section 502 of the Housing Act of 1949 (42 U.S.C. 
VerDate Sep 11 2014 
20:25 Jan 04, 2024
Jkt 049200
PO 00000
Frm 00034
Fmt 6652
Sfmt 6201
E:\BILLS\H6785.IH
H6785
1472) before, on, or after the date of enactment of this 
Act. 
Æ 
VerDate Sep 11 2014 
20:25 Jan 04, 2024
Jkt 049200
PO 00000
Frm 00035
Fmt 6652
Sfmt 6301
E:\BILLS\H6785.IH
H6785