Delaware congressional rep writes letter to USDA to revert changes to rural housing program
Dover, Del. – On May 15, Rep. Sarah McBride (D – Delaware), alongside Reps. Jim Costa (D-Calif.) and James Moylan (R-Guam) wrote a letter to the U.S. Department of Agriculture urging them to reverse changes to the Section 502 Direct Loan Program.
The changes, which went into effect in February, reduce loan limits by 60%, remove Supplemental Nutrition Assistance Program (SNAP) benefits from repayment calculations and add stricter approval layers.
“By putting up new administrative barriers, it’s going to push people out of this program, it’s going to make it work less efficiently for people,” McBride said in an interview with WMDT. “And therefore, it’s going to be harder for Delawareans to access it.”
Matthew Heckles, the Director of the Delaware State Housing Authority, supported McBride’s letter to the USDA and said:
“We know that homeownership provides more than a roof and four walls. Owning a home creates generational wealth and ensures a sense of security and stability for families. The USDA’s Section 502 Direct Loan Program provides one more tool in our toolbox for families trying to achieve that dream. It is critical we maintain that assistance for working families in rural communities across our state. I thank Rep. McBride for advocating for affordable homeownership.”
The USDA Rural Development department said the changes were intended to reflect a “commitment to responsible lending practices and program integrity, ensuring that resources are used effectively to support rural homeownership for years to come.”
“We have already seen the average age of a first-time homeowner increase to 40 years old,” McBride said. “And for seniors on fixed incomes, being able to purchase a home, being able to maintain a home, is increasingly unaffordable.”
McBride says housing is a top-of-mind issue for everyone in Delaware, especially in Sussex County.
“When I’m traveling around Delaware, especially when I’m in Sussex County, the number one issue I hear from people is the cost of housing, that the American dream of homeownership is increasingly unaffordable and inaccessible,” she said.
Which is why McBride said, hopefully, the program will not only be protected, but built on.
Representative McBride also told WMDT that the bipartisan effort to secure more equitable access to housing for Americans culminated in the 21st Century ROAD to Housing Act being agreed to in the House.
