Bill aims to construct homes with proceeds from future GSE release

U.S. Reps. Tom Suozzi (D-N.Y.) and Nicole Malliotakis (R-N.Y.) have introduced the Housing for US Act — a bipartisan proposal aimed at easing the national housing shortage by investing federal funds into the construction of millions of new homes for middle-class Americans.

The bill, which is currently awaiting committee review, calls for up to $250 billion in proceeds from the potential end of the federal conservatorships over Fannie Mae and Freddie Mac to be allocated toward building as many as 3.5 million housing units.

“If Fannie and Freddie are released, the government could recoup $250 billion,” Suozzi said in a statement. “We should capitalize on this moment by using these funds to build homes for men, women, and families in the American middle class, and we should pay union workers to do it. It’s good for the economy, good for families, and good for America.”

The legislation would establish a revolving loan fund to support both rental housing and homeownership opportunities. After a 10-year period, any unused funds would be directed toward reducing the national deficit.

Malliotakis emphasized the bill’s potential to fill the gap in affordable housing for working Americans.

“Police officers, firefighters, teachers, carpenters and tilers often earn too much to qualify for affordable housing but not enough to afford market rates. This is a chance to deliver critical assistance to hard working Americans,” she said.

Support for the proposal spans labor, civil rights and public safety organizations.

“Hardworking, middle-class Americans in red states and blue states alike are finding it harder than ever to access housing that is not only affordable, but within the neighborhoods they work in,” said Gary LaBarbera, president of the Building and Construction Trades Council of Greater New York.

“The introduction of the Housing for US Act is a unique, bipartisan collaboration that can trigger affordable housing development reserved for this population while also creating countless family-sustaining union careers that will generate key economic stimulus and boost our local communities for generations to come.

“Let’s free Fannie and Freddie and use the proceeds to build homes for American workers by American workers.” 

Bobby Eustace, vice president of the Uniformed Firefighters Association IAFF Local 94, echoed the urgency.

““Firefighters risk their lives every day in service of communities across the five boroughs of New York City — a city that they are increasingly unable to afford living in with their families,” he said. “It’s critically important that the housing issues faced by the rapidly disappearing middle class are addressed.”

“With this legislation, Congress Members Suozzi and Malliotakis have put the forgotten middle-class first, and it’s about time.” said Thomas Gesualdi, president of Teamsters Local 282.

Marc Morial, president and CEO of the National Urban League, noted broader implications.

“The housing crisis is real, it’s profound and it’s hurting working families across this country,” he said. “It’s time to end this crisis by building millions of new homes for the work force that makes our country go.”