USDA proposes rescinding outdated construction rule to streamline rural housing development

WASHINGTON — The U.S. Department of Agriculture Rural Development announced a proposal to rescind an outdated federal regulation governing planning, construction and development requirements for USDA-financed housing. The proposed action targets 7 CFR part 1924, a rule originally issued in 1987 under the former Farmers Home Administration that predates modern building codes and administrative programs.

Department officials stated that the 1987 rule established duplicative federal planning, contracting, inspection and warranty requirements that overlapped with existing state and local regulations. By removing the secondary layer of federal oversight, the agency aims to eliminate administrative delays and lower development costs for single-family and multifamily housing projects across rural America.

Rural Development Under Secretary Glen Smith emphasized that the regulatory rollback focuses on modernizing department operations and expanding access to housing.

“Under the leadership of President Trump, Vice President Vance and Secretary of Agriculture Brooke Rollins, USDA Rural Development is taking a hard look at outdated rules that raise costs and make it harder for rural Americans to access affordable housing,” Smith said. “This action removes an unnecessary layer of federal process, respects the role of state and local building authorities and enables Rural Development to focus on delivering results for rural communities and taxpayers.”

Rural Housing Service Administrator George Kelly added that rural families, lenders and developers should not have to navigate overlapping federal rules when local safeguards already protect construction quality. The initiative aligns with Executive Order 14192, “Unleashing Prosperity Through Deregulation,” and Executive Order 14394, “Removing Regulatory Barriers to Affordable Home Construction”.

Agency officials noted that the rescission will not compromise building quality or structural safety. USDA Rural Development will continue administering housing programs in accordance with the Housing Act of 1949, maintaining program underwriting criteria while relying on state and local enforcement bodies to uphold health and safety standards.