A bipartisan group of senators introduced legislation Tuesday to expand access to home loans in rural areas by updating outdated eligibility rules under the Farm Credit Act of 1971.
Sens. Peter Welch, D-Vt., Jim Justice, R-W.Va., Adam Schiff, D-Calif., and Cindy Hyde-Smith, R-Miss., sponsored the FARM Home Loans Act, which would raise the population threshold for rural areas eligible for certain farm credit housing loans from 2,500 to 10,000 residents.
Lawmakers said the change would help nearly 30 million additional homebuyers qualify for assistance.
The bill comes as housing affordability remains a top concern for voters ahead of the midterms, with rural areas seeing sharp price increases in recent years.
The legislation would amend Section 1.11(b) of the Farm Credit Act to allow farm credit institutions to finance homes, including accessory dwelling units, in larger rural communities.
Proponents said this aligns the definition more closely with the U.S. Department of Agriculture's rural housing program standards.
Welch highlighted the impact in his home state.
"We’re in the midst of an affordable housing crisis, and Vermonters are amongst the hardest hit," he said in a statement.
"Making farm credit loans more accessible is vital to addressing this crisis and will help millions of rural families experience the joy of homeownership for the first time."
Justice emphasized benefits for his constituents.
"All over rural America, folks just want to own a home, raise their families, and build something that lasts," he said.
"This bill helps increase competition for credit and opens the door for over 230,000 West Virginians to do just that."
A Redfin analysis from November found that rural home prices rose nearly 61% from pre-pandemic levels to a median of $280,900, with the income required to afford the median home jumping more than 105% to almost $75,000 annually.
Companion legislation was introduced in the House by Reps. Kristen McDonald Rivet, D-Mich., and Bill Huizenga, R-Mich.
The proposal builds on a broader Senate-passed housing package earlier this month that has stalled in the House.
It addresses one element of rural housing challenges separate from the greater recent bipartisan efforts.
Jim Thomas ✉
Jim Thomas is a writer based in Indiana. He holds a bachelor's degree in Political Science, a law degree from U.I.C. Law School, and has practiced law for more than 20 years.
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