S. 2423 — Streamlining Rural Housing Act of 2025

This section directs the Secretaries of Housing and Urban Development (HUD) and Agriculture (USDA), not later than 180 days after the date of enactment, to enter into a memorandum of understanding to (1) evaluate categorical exclusions (as defined in 42 U.S.C. 4336e) for housing projects funded by HUD or USDA; (2) develop a process to designate a lead agency between HUD and USDA and streamline adoption of environmental impact statements and environmental assessments approved by the other agency for jointly funded housing projects; (3) maintain compliance with environmental regulations under 24 C.F.R. part 58 as in effect on January 1, 2025; and (4) evaluate the feasibility of a joint physical inspection process for such projects. The section further requires the secretaries, not later than 180 days after enactment, to establish an advisory working group—including affordable housing nonprofits, state housing agencies, home builders and developers, property managers, multifamily owners, public housing agencies, assisted housing residents and representatives, and housing contract administrators—to consult on MOU implementation. Not later than one year after enactment, the secretaries must submit to the Senate Committee on Banking, Housing, and Urban Affairs and the House Committee on Financial Services a report with recommendations for legislative, regulatory, or administrative actions to improve the efficiency and effectiveness of HUD- and USDA-funded housing projects, without materially reducing resident safety, shifting long-term costs to residents, or undermining environmental standards.