Defining "Rural" for Housing Programs
Federal rural housing assistance is funded through USDA. The 2008 Farm Bill addressed some issues we had identified in earlier work:
- In December 2004, GAO reported that changing some of the requirements that
define eligibility for USDA rural housing programs would allow the agency
to better serve rural areas. Specifically, GAO noted that certain elements
of the legislation defining “rural” could cause similar communities
to receive dissimilar treatment. GAO suggested that Congress consider eliminating
the requirement that USDA use metropolitan statistical areas and switch to
density-based measures that better reflect where people live as a basis for
its eligibility decisions. The 2008 Farm Bill dealt with the issue, although
the congressional conference committee compromise eliminated the use of a
housing density criterion from the proposed standard definition of “rural” for
agricultural credit programs.
Highlights of GAO-05-110 (PDF), Highlights of GAO-05-382T (PDF)
- The 2008 Farm Bill directed USDA to conduct a rule making for those programs that allows USDA to use a housing density criterion and requires that the Secretary of Agriculture report to Congress on the various USDA program definitions of “rural.”
^ Back to topWhat Needs to Be Done
USDA’s report to Congress, due in 2 years, should include an examination of using a housing density criterion—which USDA has the authority to use for many of its agricultural credit programs—for its rural housing programs.
^ Back to topKey Reports
- Rural Housing Service: Overview of Program Issues
- GAO-05-382T, March 10, 2005
- Summary (HTML) Highlights Page (PDF) Full Report (PDF, 23 pages) Accessible Text
- Rural Housing: Changing the Definition of Rural Could Improve Eligibility Determinations
- GAO-05-110, December 3, 2004
- Summary (HTML) Highlights Page (PDF) Full Report (PDF, 49 pages) Accessible Text Recommendations (HTML)
