Two senators have introduced a bill that would ensure residents in over 900 communities don’t lose their eligibility to take out Rural Housing Service loans.
Sens. Tim Johnson, D-S.D., and Pat Roberts, R-Kan., are co-sponsoring the bill that would grandfather those communities until the 2020 census.
“Buying or building a home in a rural area can present unique challenges, and the USDA’s rural housing programs have helped make responsible homeownership a reality for countless moderate and low-income families in South Dakota and nationwide,” said Johnson. “Providing these loans, grants and loan guarantee programs helps younger generations stay in the communities they’re from, and ensures rural housing markets have access to private credit.”
Since the 2010 census, Congress has repeatedly passed temporary measures to extend RHS eligibility for another year or six months. The last
Currently, residents in communities outside of metropolitan statistical areas with populations below 10,000 are eligible for RHS-guaranteed loans. The U.S. Department of Agriculture maintains a list of eligible communities.
Within MSAs, communities with populations up to 25,000 can are eligible for RHS single-family loans.
The Johnson-Roberts bill would raise the 25,000 population limit in MSAs to 35,000.
