NLIHC Joins National Sign-On Letter Calling for Full Inclusion of the “Rural Housing Service Reform Act” in Final Housing Supply Package

By NLIHC Policy Team 

NLIHC joined a national sign-on letter urging House and Senate housing committee leaders to ensure that the “Rural Housing Service (RHS) Reform Act” (“RHS Reform Act”) is maintained in the final version of the “21st Century ROAD to Housing Act.” The “21st Century ROAD to Housing Act” is the largest bipartisan housing supply package to move through Congress in decades; the bill passed the Senate on March 12 (see Memo, 3/23). NLIHC encourages advocates to call their members of Congress and ask them to push for full inclusion of the “RHS Reform Act” in any final package. 

The national sign-on letter, led by the Housing Assistance Council (HAC) and signed by 205 organizations, urges full inclusion of the “RHS Reform Act.” The legislation is a top NLIHC priority, as it would help preserve affordable rental and homeownership opportunities for low-income people living in rural areas and further pathways to expand rural housing supply. The letter emphasizes the bipartisan nature of the bill while underscoring the need to invest in and modernize rural housing infrastructure.  

Rural communities face unique affordability and housing supply problems that are often overlooked, with issues ranging from cost burden to overcrowding. The U.S. Department of Agriculture (USDA) operates several programs through its Rural Housing Service (RHS)—programs that are in need of modernization and improvement to effectively preserve affordable housing. Preservation is reliant on updating programs and providing additional administrative support, which are goals of the “RHS Reform Act.” No new rental properties have been developed under Section 215 since 2011; and preserving existing Section 215 properties are complicated by three factors: 1) physical deterioration of properties, 2) the rapid pace of maturing mortgages within USDA’s portfolios, and 3) the policy that affordability requirements end when property owners prepay their mortgages.  

The letter describes how: 

• The number of rural housing units increased by only 1 percent between 2013 and 2023, compared to a 10 percent increase in non-rural counties.  
• The “RHS Reform Act” would create new pathways for public-private partnerships by authorizing the decoupling of Section 515 mortgages and the associated Section 521 rental assistance (piloted through appropriations).  
• Preserving existing affordable housing stock is a critical component of increasing the rural housing stock, as aging housing units are being lost in rural places at nearly the same rate that new units are being constructed.  

Including the entirety of the “RHS Reform Act” within a final “21st Century ROAD to Housing Act” is an NLIHC priority and would be key to ensuring USDA RHS programs truly maintain and increase access to affordable housing for rural communities. 

Urge your members of Congress to include the “RHS Reform Act” and other NLIHC priorities in a final housing supply package here. 

Read the RHS Reform Act sign-on letter here.  

Learn more about rural housing programs with Chapter 4 of NLIHC’s Advocates’ Guide 2026: “USDA Rural Rental Housing Programs.”