Housing for US Act

Bill Number

H.R. 4266

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

Housing and Community Development

Status

Introduced

Latest Action

2025-06-30: Referred to the House Committee on Financial Services.

Last Updated

2025-10-25T08:05:43Z

AI-Generated Summary

Purpose of the Legislation

The "Housing for US Act" (H.R. 4266) aims to direct any future funds received by the federal government from the release (or privatization) of the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac)—two government-sponsored enterprises currently under federal conservatorship—toward creating state-level revolving loan funds. These funds would support the development and rehabilitation of housing affordable to middle-class Americans, defined as those with incomes between 80% and 165% of the area median income (AMI). The goal is to increase housing supply while ensuring long-term fiscal responsibility through eventual repayment for deficit reduction.

Key Provisions

• Fund Transfer and Timeline: Any proceeds from the release of Fannie Mae and Freddie Mac must be transferred to a dedicated trust fund. These funds are restricted for 10 years to capitalize state housing revolving loan funds. After 10 years, states repay the loans to the U.S. Treasury's General Fund, earmarked solely for reducing the federal deficit.

• Administration by HUD: The Secretary of Housing and Urban Development (HUD) enters agreements with states to provide low-interest capitalization loans (including interest-free options) for establishing state loan funds. Funds are allotted to states using a formula based on:
• Need for affordable housing for families at 80-165% of AMI.
• Shortages of adequate housing and prevalence of substandard conditions.
• High construction costs in certain areas.
• Other factors determined by HUD.

• State Responsibilities: States must:
• Contribute at least 20% matching funds from non-federal sources.
• Establish and manage a revolving loan fund in perpetuity, investing unused amounts in interest-bearing obligations.
• Use funds only for loans, guarantees, or reserves to local governments or non-profits for eligible housing projects.
• Comply with accounting, audit, and reporting standards; submit biennial reports to HUD; and allow periodic federal audits.

• Eligible Uses of Funds:
• Loans to eligible entities (local governments or non-profits) for new construction, rehabilitation, acquisition, site improvements, or demolition of housing to support middle-class homeownership and rentals.
• Related costs like financing, relocation for displaced persons, or reasonable administrative/planning expenses.
• Loan terms: Up to 30-40 years, with repayments starting within 18 months of project completion and dedicated revenue sources for repayment.
• Additional options: Refinancing municipal debt, guaranteeing bonds, or using interest earnings for state-issued bonds to leverage more funds.

• Ineligible Uses:
• Modernizing public housing, tenant-based rental vouchers (Section 8), ongoing rental operations, paying back taxes/fees, or matching other federal programs.

• Qualified Housing Standards:
• Rentals: For at least 15 years, rents must not exceed fair market rates or 30% of income for households up to 165% AMI (with minimums at 80% AMI); occupied by qualifying low-to-middle-income households; new builds must meet energy efficiency standards.
• Homeownership: For multi-unit projects (5+ units), at least 50% affordable to 120-165% AMI and 20% to under 80% AMI; single-family (1-4 units) affordable to 80-165% AMI; 5-year resale restrictions to maintain affordability; new builds meet energy standards.
• Waivers possible for mixed-income/use projects if they enhance overall affordability.

• Labor and Contractor Requirements (applicable in urban areas with high housing density):
• At least 15% of construction labor hours by qualified apprentices from registered programs, with ratios per Department of Labor rules; good-faith efforts required, or penalties apply.
• Prevailing wages under the Davis-Bacon Act (federal law ensuring workers on public projects earn local standard rates).
• I-9 compliance (federal form verifying work eligibility to prevent unauthorized employment).
• Mandatory project labor agreements (pre-hire collective bargaining deals to ensure stable labor, no strikes, and fair competition for bids).
• "Responsible contractor" rules: No recent convictions, debarments, defaults, or major violations (e.g., fines over $5,000 for labor, environmental, or safety issues).
• HUD to issue guidance on recordkeeping and enforcement.

• Administrative Costs: States can use up to 4% of funds (or a minimum of $400,000) for program administration and technical assistance, plus an extra 10% starting in 2026 and 2% for small communities.

Significant Changes to Existing Law

This bill introduces a new mechanism to repurpose potential proceeds from ending the conservatorship of Fannie Mae and Freddie Mac, which have been under federal control since 2008 without a statutory directive for such funds. It overrides other laws to dedicate these amounts exclusively to middle-class housing loans, while adding novel state matching requirements, labor mandates (e.g., apprenticeship quotas and project labor agreements not standard in all housing programs), and a 10-year repayment for deficit reduction. It builds on existing HUD programs like revolving funds but tailors them specifically to middle-income housing, excluding certain uses like public housing modernization that are allowed elsewhere.

Potential Impacts

• Government Agencies: HUD gains expanded administrative duties, including fund allotment, agreements, guidance, and audits, potentially increasing workload and requiring new regulations. The Treasury benefits from repayments for deficit reduction after 10 years. States face setup and compliance burdens but gain flexible funding tools.

• Citizens: Middle-income families (80-165% AMI) could see increased access to affordable rental and ownership housing through more supply in high-need areas, potentially lowering costs and improving options. Construction workers may benefit from job protections like prevailing wages and apprenticeships, promoting training and fair pay. Displaced persons get relocation support, but ineligible uses limit aid for very low-income or operational needs.

• International Relations: No direct impacts; the bill focuses on domestic housing and fiscal policy.

Main Stakeholders Affected

• States and Local Governments: Primary recipients of capitalization loans; must manage funds, match contributions, and oversee projects.
• Non-Profit Organizations: Eligible for loans to develop/rehabilitate housing.
• Middle-Income Households: Target beneficiaries through affordable housing units.
• Construction Industry and Workers: Impacted by labor rules, including unions (via project labor agreements), apprentices, and contractors subject to wage, eligibility, and responsibility standards.
• Fannie Mae and Freddie Mac: Indirectly affected if their release triggers fund transfers.
• Federal Agencies: HUD (administration) and Treasury (repayments); Department of Labor enforces wage/apprenticeship rules.

Notable Legal, Constitutional, or Political Implications

• Legal: Establishes enforceable restrictions on fund use, with audits and penalties for non-compliance (e.g., apprenticeship shortfalls). Incorporates existing laws like Davis-Bacon and I-9 but mandates new elements like project labor agreements, which could face challenges if seen as favoring unionized labor. Requires HUD regulations to prevent waste/fraud, ensuring accountability.

• Constitutional: Involves federal spending power (Article I, Section 8) for housing, a traditional congressional role, with no apparent free speech, due process, or equal protection issues. State matching and repayment clauses promote fiscal federalism without coercing states unduly.

• Political: Sponsored bipartisans (Reps. Suozzi and Malliotakis), signaling cross-aisle appeal for middle-class housing amid shortages. Ties housing aid to deficit reduction, balancing progressive goals with conservative fiscal priorities; could influence debates on privatizing Fannie/Freddie Mac and broader housing policy reforms.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Suozzi, Thomas R. [D-NY-3]

Cosponsors (2)

Rep. Malliotakis, Nicole [R-NY-11], Del. Moylan, James C. [R-GU-At Large]

Recent Actions

• 2025-06-30: Referred to the House Committee on Financial Services.
• 2025-06-30: Introduced in House
• 2025-06-30: Introduced in House

Bill Versions

• Housing for US Act — issued 2025-06-30 — PDF (27 pages)