HAC welcomes new pilot program to preserve affordable rural rental housing

Sept. 28, 2026 – A new pilot program will help the Rural Housing Service (RHS) of the U.S. Department of Agriculture (USDA) to continue providing decent, affordable rental homes for rural Americans with limited incomes. The effort drew praise today from the Housing Assistance Council (HAC), a national nonprofit that supports affordable housing efforts throughout rural America.

“This pilot enables USDA to cut red tape and processing time,” said HAC President and CEO David Lipsetz. “It will help the department, property owners, and stakeholders like HAC as we work to protect taxpayers’ investment in rural rental housing and protect some of our most vulnerable neighbors.”

USDA’s Section 515 program finances more than half a million low-income apartments for tenants in small towns and rural areas in every state. The majority of 515 families include seniors or people with disabilities. Yet these rentals are disappearing as their USDA mortgages end. HAC estimates that these properties will all be gone by 2058 unless preservation efforts increase. 

“It is getting easier for existing and new owners to renovate older buildings and preserve long term affordability,” Lipsetz said. Among other things, the pilot will streamline the transfer process by eliminating certain duplicative environmental reviews and capital needs assessments, replacing overly prescriptive construction requirements, and better aligning with the Low Income Housing Tax Credit.  It will also prioritize saving distressed properties.

RHS’s new pilot builds on the recently enacted 21st Century ROAD to Housing Act. The bill strengthened USDA’s tools for supporting mixed finance 515 preservation strategies by authorizing Stand Alone Rental Assistance (SARA). “HAC works with local owners – and prospective owners – who want access to the Department’s new SARA funding stream,” said Lipsetz. “This pilot will greatly benefit the process, especially when complemented by USDA’s anticipated distribution of FY 2025 and FY 2026 Multifamily Technical Assistance funds.”