Bi-cameral legislation re-introduced by Democrats would lower the cost of housing and address the housing shortage, law makers said.
U.S. Sens. Elizabeth Warren (D-MA) and Raphael Warnock (D-GA) joined U.S. Rep Emanuel Cleaver (D-MS) to re-introduce the American Housing and Economic Mobility Act. The legislation would leverage federal funding to build nearly three million new housing units, bring rent down by 10 percent and create incentives for local government to eliminate unnecessary land use restrictions.
“Americans are suffering under the weight of sky-high housing prices, and Congress must act. My comprehensive bill would build 3 million new homes across America, bring down rents by 10%, and create incentives for local governments to cut unnecessary red tape that drives up costs,” Warren, the ranking member of the Senate Banking, Housing and Urban Affairs Committee, said. “I look forward to continuing bipartisan conversations about meaningful solutions to our nation’s housing crisis.”
An analysis by Moody’s Analytics found that the bill would bring rents down for lower-income and middle-class families by 10 percent, saving the average family about $140 per month. To offset the cost of building or rehabilitating nearly 3 million housing units over the next decade, the law maker said the bill would return the estate tax thresholds to the levels they were at during the George W. Bush administration while instituting more progressive rates above those thresholds and closing certain loopholes.
The legislation is also endorsed by a number of organizations including unions, housing organizations, civil rights organizations, consumer protection organizations, economic justice organizations and credit unions.
“Amidst historically high housing prices and limited supply, millions of Americans across the country are struggling to afford to rent or buy a home,” Sharon Cornelissen, director of Housing at the Consumer Federation of America, said. “This bill would turbocharge affordable housing construction, incentivize communities to remove exclusionary and unfair zoning restrictions, and ensure that first-generation homebuyers including veterans get their chance at building wealth through homeownership too.”