U.S. Senator Elizabeth Warren, along with Senator Raphael Warnock and Congressman Emanuel Cleaver, has reintroduced the American Housing and Economic Mobility Act. This legislation aims to address the ongoing housing crisis in the United States by proposing federal funding to construct nearly three million new housing units. The bill is expected to lower rents by 10% for American families and encourage local governments to reduce land use restrictions that contribute to rising costs.
The bill's introduction coincides with an upcoming Senate Committee on Banking, Housing, and Urban Affairs hearing focused on housing issues. Warren will discuss this proposal alongside other measures intended to tackle the housing crisis.
Moody’s Analytics conducted an independent analysis revealing that the bill could build or rehabilitate nearly three million homes over a decade and save average families $140 per month in rent. The initiative proposes funding through adjustments in estate tax thresholds, progressive rates above those thresholds, and closing loopholes.
“Americans are suffering under the weight of sky-high housing prices, and Congress must act,” said Warren. She emphasized her commitment to bipartisan discussions for substantial solutions to the nation's housing problems.
Senator Warnock highlighted the importance of affordable housing as a foundation for building a healthy future, stating his support for this "transformational legislation." Congressman Cleaver pointed out that housing affordability remains a top priority for many families while criticizing past administrative policies that have not addressed these concerns.
The proposed act also includes measures such as down payment assistance for first-time homebuyers, eligibility for VA-guaranteed loans for veterans' descendants, grant programs for communities with appraisal gaps, and limiting private equity's role in the housing market.
More than 50 non-profit organizations have endorsed the bill, including unions like AFL-CIO and civil rights groups such as The Leadership Conference on Civil and Human Rights. Sharon Cornelissen from the Consumer Federation of America expressed support, highlighting how it could boost affordable housing construction amidst high prices and limited supply.
Renee Willis from NLIHC commended Warren, Warnock, and Cleaver's leadership in addressing fundamental causes of America's housing crisis. Jesse Van Tol from NCRC praised the legislative effort as crucial for making housing costs manageable for working-class people.
Caroline Ciccone of Accountable.US lauded the act as a significant step toward making housing more accessible nationwide.