Policy

Policy News from Congress

Updated – Draft House Bill Proposes Higher Rural Housing Spending

July 1, 2021 – The full House Appropriations Committee approved its FY22 USDA funding bill on June 30, including increases in some rural housing programs as described below. The bill will be considered later this summer by the full House. The Senate has not yet released a proposal.

The House committee also released its report on the bill, providing additional information and directives from the committee, including a paragraph about farmworker housing.

Farm Labor Housing.—The Committee encourages USDA to explore opportunities to leverage its resources including its Food and Nutrition Programs, Community Facilities Programs, Housing Preservation Grants, and other programs, and to create partnerships with the Department of Labor’s Farmworker Housing outreach and technical assistance program, Health Resources and Services Administration’s Health Center Program, and the Administration for Children and Families Migrant and Seasonal Head Start Program, to coordinate and align resources to address the housing, nutrition and healthcare needs of this vulnerable population of essential workers who play a critical role in America’s food security. The Committee further encourages USDA to explore including service coordinators as an allowable expenditure for farm labor housing projects.

June 24, 2021 – As congressional action begins for fiscal year 2022 federal funding, the House Appropriations Committee has released a bill proposing increases in several of USDA’s rural housing programs.

Like the administration’s budget, the House bill would raise funding for Section 502 direct and guaranteed mortgage loans, Rental Assistance, and self-help housing. While the budget would increase the Multifamily Preservation and Revitalization (MPR) program to $32 million from $28 million in FY21, the House bill would provide a far larger boost, to $65 million. The House would also grow the Section 504 grant program for elderly low-income homeowners and the Section 533 Housing Preservation Grants program.

The House bill retains several provisions that are in current appropriations law but were dropped in the administration’s budget. These call for incentives to nonprofits to preserve rental housing, reuse of recaptured Rental Assistance (RA), and use of recaptured RA from farmworker housing in other farmworker housing when possible. Like the budget, however, it eliminates a provision from the FY20 and FY21 appropriations laws that allowed property owners to request RA contracts with 20-year terms.

The House Agriculture Appropriations Subcommittee will review the draft bill at a mark-up on June 25, 2021. The full House Appropriations Committee will consider it on June 30. The Senate has not yet begun its appropriations process.

 

USDA Rural Dev. Prog.

(dollars in millions)

FY20 Final Approp. FY21 Final Approp. Amer. Rescue Plan Act FY22 Admin. Budget FY22 House Bill
502 Single Fam. Direct $1,000 $1,000 $656.6a $1,500 $1,500
502 Single Family Guar. 24,000 24,000 30,000 30,000
504 VLI Repair Loans 28 28 18.3a 28 28
504 VLI Repair Grants 30 30 30 c
515 Rental Hsg. Direct Lns. 40 40 40 40
514 Farm Labor Hsg. Lns. 28 28 28 b
516 Farm Labor Hsg. Grts. 10 10 10 b
521 Rental Assistance 1,375 1,410 100 1,450 1,450
523 Self-Help TA 31 31 32 32
533 Hsg. Prsrv. Grants 15 15 15 c
538 Rental Hsg. Guar. 230 230 230 230
Rental Prsrv. Demo. (MPR) 28 28 32 60
542 Rural Hsg. Vouchers 32 40 45 45
Rental Prsrv. TA 1 2 0 2
Rural Cmnty. Dev’t Init. 4 6 6 6

a. The American Rescue Plan Act of 2021 provides $39 million in budget authority to refinance Section 502 direct loans and Section 504 loans for homeowners impacted by the coronavirus pandemic. USDA expects this funding to generate $656.6 million in Section 502 direct loans and $18.3 million in Section 504 loans.

b. The House bill provides a total of $17.8 million in budget authority for the Section 514 and 516 farm labor housing programs. When the Appropriations Committee prepares a report on the bill, that document will state the program amounts.

c. The House bill provides a total of $65 million for Section 504 grants and Section 533 grants. When the Appropriations Committee prepares a report on the bill, that document will show how the total is to be divided between the two programs.