The US Senate on June 22 (US time) passed a bipartisan bill on affordable housing, paving the way for Congress to complete the legislative process this week and submit it to President Donald Trump for signature and promulgation.
This measure is designed to increase access to affordable single houses in the context of high consumer prices being a top concern of voters before the midterm elections in November. The bill has now been submitted to the House of Representatives for final passage.
The United States has faced a shortage of affordable housing for many years. The reasons are attributed to many factors, from outdated regulations that increased construction costs to the prolonged impacts of the 2008 financial crisis. Estimates of the number of new houses needed currently range from 1.5 million to 7.3 million units.
The bill sets a maximum ownership limit of 350 detached houses for each large investment company. This latest version has removed a Senate clause that requires investors to sell off assets held within 7 years. Proponents of the ceiling argue that large investors have pushed house prices up by bidding higher than individual buyers.
Environmental impact assessment procedures for construction projects will be exempted or accelerated. At the same time, more funding will be disbursed through federal block funding for states.
The US Department of Agriculture's rural housing program will also be streamlined. Overall, this bill is a combination of 36 housing measures passed by the Senate in March and 11 measures passed by the House in May.
With the average age of first-time homebuyers currently being 40, the bill aims to help young people enter the housing market. A pilot program will increase access to small mortgage loans with outstanding principal of $100,000 USD or less.
Mr. Tim Scott, Chairman of the US Senate Banking Committee, said the bill will "reduce costs, expand housing supply and cut cumbersome administrative procedures". Meanwhile, Ms. Elizabeth Warren, a Democratic Senator from Massachusetts, said this is "the biggest housing bill in more than 30 years".
