Working Families Home Construction Act of 2026
- Bill Number
- H.R. 9461
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- Finance and Financial Sector
- Status
- Introduced
- Latest Action
- 2026-06-25: Referred to the House Committee on Financial Services.
- Last Updated
- 2026-07-09T13:21:01Z
AI-Generated Summary
Purpose This legislation aims to allow the Federal Home Loan Mortgage Corporation (Freddie Mac) and the Federal National Mortgage Association (Fannie Mae) to buy and bundle certain residential construction loans into securities, with the goal of increasing financing options for building homes targeted at moderate-income families.
Key Provisions
- The Director of the Federal Housing Finance Agency must permit Fannie Mae and Freddie Mac to purchase and securitize "qualifying construction loans."
- A qualifying loan must meet these requirements:
- Made by a bank, credit union, state housing finance agency, or other approved lender.
- Issued to a builder or developer for projects creating owner-occupied homes.
- Requires the borrower to contribute at least 10% of project costs (including land value).
- Limits: up to $100,000 per home unit and $2.4 million total per project; may supplement other financing sources.
- Funds can cover land acquisition, infrastructure (roads, sewers), construction, permits, and related costs.
- Homes must be sold to families earning 90–130% of the local area median income.
- Buyers must live in the home for at least one year, enforced by a recorded covenant.
- Lender must document project viability and local community support (such as zoning approval or a building permit).
- The bill amends existing law to allocate 22% of certain funds held by Fannie Mae and Freddie Mac specifically for these construction loans, reducing prior allocations for other purposes.
Significant Changes to Existing Law
- Modifies the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 by adding a new category for construction loan purchases and securitization.
- Reduces existing percentage allocations (from 65% to 53% and 35% to 25%) to create room for the new 22% set-aside.
- Overrides prior restrictions that prevented Fannie Mae and Freddie Mac from engaging in this type of construction financing activity.
Potential Impacts
- On government agencies: Increases oversight responsibilities for the Federal Housing Finance Agency in setting interest rates and approving loan terms while monitoring safety and soundness.
- On citizens: May expand access to new home construction for families in the specified income range by improving financing availability for builders.
- On international relations: No direct effects identified.
Main Stakeholders Affected
- Fannie Mae and Freddie Mac (as the primary entities authorized to purchase and securitize the loans).
- The Federal Housing Finance Agency (as the regulator setting rules and allocations).
- Builders, developers, and homebuilders seeking construction financing.
- Moderate-income homebuyers (those earning 90–130% of area median income).
- Banks, credit unions, and state housing finance agencies originating the loans.
- Local governments (through requirements for zoning, permits, or endorsements).
Notable Legal, Constitutional, or Political Implications
- Operates within the framework of government-sponsored enterprises currently under federal conservatorship, potentially affecting their risk profiles and regulatory capital requirements.
- Introduces new affordability and occupancy restrictions that could influence local housing markets and lending practices.
- Represents a targeted expansion of federal housing finance tools without altering broader constitutional authorities over interstate commerce or financial regulation.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Rep. Fitzgerald, Scott [R-WI-5]
Recent Actions
- 2026-06-25: Referred to the House Committee on Financial Services.
- 2026-06-25: Introduced in House
- 2026-06-25: Introduced in House
Bill Versions
- Working Families Home Construction Act of 2026 — issued 2026-06-25 — PDF (7 pages)