U.S. Senator Mazie K. Hirono, along with Senators Elizabeth Warren and Reverend Raphael Warnock, U.S. Representative Emmanuel Cleaver, and other Senate colleagues, have reintroduced the American Housing and Economic Mobility Act. This comprehensive bill aims to tackle the housing crisis by leveraging federal funding to construct nearly three million new homes, reduce rents by 10%, and encourage local governments to remove unnecessary land use restrictions.
Senator Hirono emphasized the need for affordable housing: "As the cost of living continues to increase, hard-working Americans are suffering, many struggling to afford their homes or even without a place to call home," she said. "Everyone deserves safe, affordable housing and this legislation would help to address our country’s housing crisis by increasing the availability of housing."
An independent analysis from Moody’s Analytics suggests that the bill could lead to nearly three million new or rehabilitated housing units over ten years and reduce rents for lower-income families by 10%, potentially saving an average family $140 monthly. The financial plan includes reverting estate tax thresholds to levels from the end of George W. Bush's administration and closing certain loopholes.
The proposed act outlines several initiatives:
- Building nearly three million new housing units.
- Providing down payment assistance for first-time homebuyers.
- Extending VA-guaranteed loan eligibility for descendants of certain veterans.
- Creating grants for communities with appraisal gaps.
- Limiting private equity's role in the housing market.
- Holding financial institutions accountable for credit access.
- Promoting mobility through stronger anti-discrimination laws.
Over 50 non-profit organizations have endorsed the bill, including major unions and civil rights groups like the Leadership Conference on Civil and Human Rights and AFL-CIO. A coalition of Massachusetts mayors also supports it.
The legislation is co-sponsored by Senators Richard Blumenthal, Chris Van Hollen, Andy Kim, Ed Markey, Bernie Sanders, and Peter Welch.