U.S. Sen. Tim Scott (R-SC) introduced the framework for legislation this week that seeks to generate higher homeownership rates and increased housing supply.
The framework for the upcoming bill, called the Renewing Opportunity in the American Dream (ROAD) to Housing Act, would institute several changes across all segments of the U.S. housing market. The goal is to boost housing supply and increase homeownership rates, particularly among African Americans, which remains relatively unchanged since 1968, the year the Fair Housing Act was signed into law.
“I grew up the son of a hardworking single mother in an apartment that we rented. I didn’t achieve the dream of homeownership until later in life. But my story is not unique. Unfortunately, federal housing policy has done little to address the affordability of housing. It’s too expensive and too far out of reach,” Scott, ranking member of the Senate Committee on Banking, Housing, and Urban Affairs, said. “It’s past time we take a comprehensive look at how we pave the road to housing for all Americans. By providing targeted reforms across all segments of the housing market, we can empower families to achieve the dream of home ownership.”
The legislative framework calls for greater oversight of federal housing programs by Congress, but also seeks to encourage responsible innovation and allow for new approaches to ensure that communities can meet the housing needs of their residents.
In addition, it would reward the efforts of housing and service providers or communities who actually reduce the number of individuals who are homeless. Further, it would support local public housing authorities by investing in solutions that de-concentrate poverty and enable families to access self-sufficiency.
Also, the legislation will review how overregulation contributes to excessive costs and delays in the supply of affordable housing. This will require agencies to rethink how they collect and analyze data to help policymakers better understand if programs are working.