NW Kansas News

U.S. Senators Jerry Moran (R-Kan.), Pete Ricketts (R-Neb.), Jeanne Shaheen (D-N.H.), and Ruben Gallego (D-Ariz.) have introduced a bipartisan bill aimed at streamlining rural housing regulations. The legislation seeks to align housing standards between the U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of Agriculture (USDA) by requiring the two agencies to enter into a memorandum of understanding (MOU).

Currently, rural housing projects that use federal funding from programs like HUD’s HOME Investment Partnerships Program and USDA’s 538 loan program must undergo separate environmental reviews and inspections to meet both agencies' requirements. The proposed MOU is intended to simplify this process, reducing costs and shortening project timelines for developers.

Senator Moran emphasized the growing demand for rural housing in Kansas, stating, “Streamlining rural housing regulations between HUD and USDA will simplify the regulatory process for developers, allowing them to more efficiently address the growing housing needs in Kansas and across the country.”

Senator Ricketts highlighted how existing regulations deter investments in rural affordable housing: “The Streamlining Rural Housing Act is the first step to enhance efficiency and eliminate conflicting requirements that delay approvals so that we can build more housing in rural Nebraska.”

Senator Shaheen noted, “To address the shortage of quality, affordable housing in rural areas, federal regulations need to work for communities rather than against them.” She expressed support for improving environmental reviews and inspections.

Senator Gallego pointed out the broader context of an affordable housing crisis: “By reducing red tape and streamlining redundant processes, this bipartisan bill will accelerate construction, lower costs, and get more desperately needed homes on the market.”

The Council for Affordable and Rural Housing has expressed support for this legislative effort. They acknowledged that current practices often require multiple sources of funding with separate inspections, which increases regulatory costs. By consolidating inspections into one requirement, operating costs could be reduced or redirected toward services on properties.

In addition to aligning standards through an MOU, the legislation calls for creating an advisory group comprising various stakeholders such as nonprofit organizations, state agencies, home builders, property managers, multifamily property owners, and contract administrators. This group would consult on implementing the MOU.