loan from the date of the refinance or modification 
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. 
1472) before, on, or after the date of enactment of this 
Act. 
SEC. 802. RELEASE OF LIABILITY FOR SECTION 502 GUAR-
ANTEED BORROWER UPON ASSUMPTION OF 
ORIGINAL LOAN BY NEW BORROWER. 
Section 502(h)(10) of the Housing Act of 1949 (42 
U.S.C. 1472(h)(10)) is amended to read as follows: 
‘‘(10) TRANSFER AND ASSUMPTION.—Upon the 
transfer of property for which a guaranteed loan 
under this subsection was made and the assumption 
of the guaranteed loan by an approved eligible bor-
rower, the original borrower of a guaranteed loan 
under this subsection shall be relieved of liability 
with respect to the loan.’’. 
SEC. 803. DEPARTMENT OF AGRICULTURE LOAN RESTRIC-
TIONS. 
(a) DEFINITIONS.—In this section, the terms ‘‘State’’ 
and ‘‘Tribal organization’’ have the meanings given those 
terms in section 658P of the Child Care and Development 
Block Grant Act of 1990 (42 U.S.C. 9858n). 
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(b) REVISION.—The Secretary of Agriculture shall 
revise section 3555.102(c) of title 7, Code of Federal Reg-
ulations, to exclude from the restriction under that sec-
tion— 
(1) a home-based business that is a licensed, 
registered, or regulated child care provider under 
State law or by a Tribal organization; and 
(2) an applicant that has applied to become a 
licensed, registered, or regulated child care provider 
under State law or by a Tribal organization. 
TITLE IX—ACCESSORY 
DWELLING UNITS 
SEC. 901. LOAN GUARANTEES. 
Section 502(h)(4) of the Housing Act of 1949 (42 
U.S.C. 1472(h)(4)) is amended— 
(1) by redesignating subparagraphs (A), (B), 
and (C) as clauses (i), (ii), and (iii), respectively; 
(2) by striking ‘‘Loans may be guaranteed’’ and 
inserting the following: 
‘‘(A) DEFINITION.—In this paragraph, the 
term ‘accessory dwelling unit’ means a single, 
habitable living unit— 
‘‘(i) with means of separate ingress 
and egress; 
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‘‘(ii) that is usually subordinate in 
size; 
‘‘(iii) that can be added to, created 
within, or detached from a primary 1-unit, 
single-family dwelling; and 
‘‘(iv) in combination with a primary 
1-unit, single-family dwelling, constitutes a 
single interest in real estate. 
‘‘(B) 
SINGLE-FAMILY
REQUIREMENT.— 
Loans may be guaranteed’’; and 
(3) by adding at the end the following: 
‘‘(C) RULE OF CONSTRUCTION.—Nothing 
in this paragraph shall be construed to prohibit 
the leasing of an accessory dwelling unit or the 
use of rental income derived from such a lease 
to qualify for a loan guaranteed under this sub-
section— 
‘‘(i) after the date of enactment of the 
Rural Housing Service Reform Act of 
2025; and 
‘‘(ii) if the property that is the subject 
of the loan was constructed before the date 
of enactment of the Rural Housing Service 
Reform Act of 2025.’’. 
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TITLE X—TIME FRAME FOR COM-
PLETING 
APPLICATION 
RE-
VIEW 
SEC. 1001. APPLICATION REVIEW. 
(a) SENSE OF CONGRESS.—It is the sense of Con-
gress, not later than 90 days after the date on which the 
Secretary of Agriculture receives an application for a loan, 
grant or combined loan and grant under section 502 or 
504 of the Housing Act of 1949 (42 U.S.C. 1472, 1474), 
the Secretary of Agriculture should— 
(1) review the application; 
(2) complete the underwriting; 
(3) make a determination of eligibility with re-
spect to the application; and 
(4) notify the applicant of determination. 
(b) REPORT.— 
(1) IN GENERAL.—Not later than 90 days after 
the date of enactment of this Act, and annually 
thereafter until the date described in paragraph (2), 
the Secretary of Agriculture shall submit to the 
Committee on Banking, Housing, and Urban Affairs 
of the Senate and the Committee on Financial Serv-
ices of the House of Representatives a report— 
(A) detailing the timeliness of eligibility de-
terminations and final determinations with re-
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spect to applications under section 502 and 504 
of the Housing Act of 1949 (42 U.S.C. 1472, 
1474), including justifications for any eligibility 
determinations taking longer than 90 days; 
(B) that includes recommendations to 
shorten the timeline for notifications of eligi-
bility determinations described in paragraph (1) 
to not more than 90 days. 
(2) DATE DESCRIBED.—The date described in 
this paragraph is the date on which, during the pre-
ceding 5-year period, the Secretary of Agriculture 
provides each eligibility determination described in 
paragraph (1) during the 90-day period beginning 
on the date on which each application is received. 
Æ 
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