| WASHINGTON, D.C. – Today, U.S. Senator Pete Ricketts (R-NE) celebrated Senate passage of the 21st Century Renewing Opportunity in the American Dream (ROAD) to Housing Act, a landmark housing bill which makes home ownership a possibility for all Americans.
“Nebraska is the best place in the world to live. But for so many potential first-time homebuyers, the market has become out of reach. The ROAD to Housing Act will help our country increase housing supply,” said Ricketts.“This legislation includes my Streamlining Rural Housing Act, which will specifically increase housing supply in rural parts of Nebraska. This legislation is commonsense and bipartisan. It should be signed into law.”
BACKGROUND
The 21st Century ROAD to Housing Act includes seven bills led or co-sponsored by Senator Ricketts. Those include the Streamlining Rural Housing Act, Improving Housing Access Act, Housing for America’s Middle-Class Act, Housing Supply and Innovation Frameworks Act, Rural Housing Service Reform Act, VALID Act, and VA Home Lone Awareness Act.
Streamlining Rural Housing Act:
- Creates a Memorandum of Understanding (MOU) to evaluate categorical exclusion under the environmental review process for housing projects that use combined funding;
- Creates an MOU to develop a process for designating a lead agency.
- This process will streamline adoption of Environmental Impact Statements and Environment Assessments approved by the other Department to construct housing projects funded by both agencies.
- Creates an MOU to evaluate the feasibility of a joint inspection process for housing projects that use combined funding;
- Establishes an advisory working group to consult on the MOUs consisting of:
- Affordable housing non-profits;
- State housing and housing finance agencies;
- Non-profit and for-profit home builders and housing developers;
- Property management companies;
- Owners of multifamily properties;
- Public housing agencies;
- Residents in housing assisted by HUD and USDA;
- Housing contract administrators.
Improving Housing Access Act:
- Seeks opportunities to remove barriers and improve the quality of housing for seniors and to increase housing accessibility for Americans with disabilities.
- Directs the Government Accountability Office (GAO) to study the effects of capital advancement for supportive housing for the low-income, elderly, and disabled.
Housing for America’s Middle-Class Act:
- Directs the Government Accountability Office (GAO) to study income parameters for workforce housing and make recommendations to Congress on how federal housing policy can better serve middle-income earners.
- Requires GAO to analyze how changing the definition of “workforce housing” could expand homeownership opportunities for all middle-class individuals – as many first responders, policemen, firefighters, and other hardworking Americans do not qualify under the current inconsistent definition.
- Highlights existing issues with housing affordability for the middle class and identify existing tax credits, grants, and other programs that could alleviate these burdens.
Housing Supply and Innovation Frameworks Act:
- Directs the U.S. Department of Housing and Urban Development (HUD) to develop frameworks for best practices on zoning and land-use policies.
- The HUD framework would serve as a resource for jurisdictions that need guidance on how to reform local laws, ordinances, and regulations to spur more building and growth.
- It creates a playbook for communities that want to change their policies to encourage that development and growth.
- Provides local and state governments with the necessary resources to confront barriers to housing development and construction.
Rural Housing Service Reform Act:
- Makes improvements to a number of USDA rural housing programs:
o Fixes a longstanding problem for properties, known as Sec. 515 properties, that were financed by the USDA decades ago and now have maturing mortgages, by making it easier for non-profits to acquire those properties and by decoupling rental assistance so that assistance doesn’t disappear when those mortgages mature;
o Makes permanent a USDA pilot program to make mortgage loans available in Native communities by partnering with local Community Development Fund Institutions (CDFIs);
o Brings the USDA’s outdated way of measuring incomes in line with the U.S. Department of Housing and Urban Development’s practices;
o Modernizes the USDA’s foreclosure process to cut red tape, better protect homeowners, and ensure USDA-owned properties stay affordable;
o Updates the rules for a home repair loan program to make it less burdensome to get smaller loans;
o Allows Sec. 502 guarantees for loans that include accessory dwellings and in-home daycares;
o Requires USDA to speed up their loan approval process;
o And makes much-needed investments in IT so that USDA can process loans more quickly and with less staff time wasted on paperwork or manual data entry.
VALID Act:
- Updates FHA mortgage disclosures to include VA Home Loans alongside FHA and conventional loan options.
- Ensures lenders are provided with important information regarding the applicant’s military service so they can provide information about VA loans early in the homebuying process.
VA Home Loan Awareness Act:
- Adds a disclosure to the Uniform Residential Loan Application (URLA) informing veterans they may be eligible for a VA Home Loan.
- Directs applicants to consult their lender for more information about the VA Home Loan program.
- Instructs the Government Accountability Office (GAO) to conduct a review and report to Congress on lenders’ adoption of these URLA updates.
- The VALID Act is endorsed by the Veterans Association of Real Estate Professionals (VAREP), the Broker Action Coalition, and the National Association of REALTORS.
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