Housing for the 21st Century Act

Floor Speech

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Mr. ROUNDS. Mr. President, I rise today in support of the 21st Century ROAD to Housing Act--a bipartisan, bicameral effort to address one of the most pressing challenges facing families across the country: the cost and availability of housing.

Housing affordability is not just an issue in major metropolitan areas; it is a challenge in small towns, farming communities, and rural counties across America.

In my home State of South Dakota, communities are growing, but the housing supply has not kept pace with demand. Whether it is young families trying to purchase their first home or workers moving into our communities, the shortage of available housing is becoming a serious challenge.

I want to thank Chairman Scott and Ranking Member Warren for their leadership in bringing members together to incorporate priorities from both sides of the committee. Their efforts resulted in a strong consensus-driven package that addresses housing challenges in both rural and urban areas.

We will be voting final passage on that act yet this afternoon.

I am proud that several provisions I have authored are included in this legislation, each focused on cutting unnecessary redtape, modernizing outdated Federal programs, and giving State and local partners the flexibility they need to address housing challenges on the ground.

First, the bill includes the Rural Housing Service Reform Act that I introduced with Senator Smith from Minnesota. Senator Smith has been a great partner as we developed this legislation over the past several years, working together to address the unique housing challenges facing rural communities across the country.

This bill provides the first comprehensive update to USDA's rural housing programs in more than a decade. Across rural America, thousands of affordable housing units financed through USDA's Section 515 Program are reaching the end of their mortgage terms.

When these mortgages mature, the rental assistance, which is tied to them, often disappears. That means that rents can increase sharply or properties can leave the program entirely.

Without congressional action, up to 400,000 Americans nationwide could face rent increases or displacement as these mortgages mature. The impact will fall hardest on the Midwest and the south regions that serve as the backbone of American ag, manufacturing, and energy production. We are already seeing the effects.

Since 2016, more than 900 properties with over 20,000 units have left USDA's Multifamily Housing Program. On average, about 80 properties per year will mature through 2028. After that, the pace accelerates dramatically with hundreds of properties expected to mature each year in the following decade.

In rural housing markets, once these units disappear, they are almost never replaced. Many rural counties already face vacancy rates below 1 percent, and in more than half of rural counties across the country, there is little or no new housing construction at all.

The Rural Housing Service Reform Act addresses this challenge directly. It allows rental assistance to be decoupled from expiring mortgages, preserving affordability for the families who rely on these homes. It also modernizes the USDA housing programs by allowing income calculations with HUD standards, streamlining loan approval and foreclosure processes, updating outdated information technology systems, and expanding eligibility for loan guarantees to include properties with a small additional home on the property and in-home daycare services.

These are practical reforms that strengthen the rural housing safety net while helping communities maintain a stable workforce and local economy.

The bill also incorporates two additional pieces of legislation I introduced with Senator Kim to streamline housing development to bring new units online faster.

The Unlocking Housing Supply Through Streamlined and Modernized Reviews Act modernizes the environmental review process under the National Environmental Policy Act for HUD-funded housing projects.

And the BUILD Housing Act strengthens coordination between HUD and State and local units of government by expanding the ability of the local partners to participate in environmental review and developmental processes.

These reforms address a simple, but persistent problem: Too often housing projects face duplicative or overlapping review processes that delay construction without improving outcomes.

By aligning Federal standards and allowing greater collaboration with State and local partners, these provisions will help move housing projects forward more efficiently. We are cutting the redtape.

Taken together, these reforms represent a commonsense approach to housing policy. They do not rely on sweeping new Federal mandates. Instead, they focus on removing barriers, modernizing outdated systems, and empowering the communities closest to the problem.

For States like South Dakota, these changes matter. Housing shortages in rural communities can affect everything from workforce recruitment to economic development. Employers across the State--from schools to healthcare providers to ag businesses--regularly tell me that housing availability is one of the biggest obstacles to expanding their workforce and building their businesses.

When workers cannot find a place to live, communities struggle to grow and local economies suffer. The Housing for the 21st Century Act takes meaningful steps toward addressing these challenges.

I urge my colleagues to support this bipartisan legislation and help put our Nation on a stronger path toward expanding housing opportunities for families in South Dakota and across the country.

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