U.S. Senator Richard Blumenthal is cosponsoring the American Housing and Economic Mobility Act, along with Senators Elizabeth Warren (D-MA) and Raphael Warnock (D-GA).
The bill has a long list of goals, like creating three million new affordable housing units and lowering rent by ten percent for low income and middle class families. It will also provide down payment assistance to first-time, first-generation homebuyers, strengthen anti-discrimination laws, and provide more assistance for veterans and their families.
“Housing is key to mobility. It is key to renters and homeowners achieving the American Dream. And housing is now increasingly unaffordable for many Americans, we’re in a housing crisis,” said Blumenthal at a press conference.
The bill would also limit the role of private equity in the housing market. Blumenthal says private equity exploits affordable housing.
“[Private equity] fails to maintain [affordable housing], drives it into the ground, and then it either goes into Chapter 11 [bankruptcy] or sells it at rock bottom prices. The ones who suffer are the renters,” said Blumenthal.
The senators say that the bill will be funded by restoring the estate tax thresholds to what they were at the end of the Bush Administration and by charging higher rates on bigger inheritances.
Blumenthal said he’s not sure if the bill will be successful with Republicans, though.
“Obviously we need cooperation from Republicans. They talk a good game on housing, they need to make a commitment and put money where their mouth is,” said Blumenthal.
A report by the Connecticut Business and Industry Foundation for Economic Growth & Opportunity found that the state is short more than 300,000 homes. The CBIA says it’s a threat to Connecticut’s economic growth.
Amy Pelletier is with Partnership for Strong Communities, a statewide non-profit housing advocacy group. She said the bill is smart policy and grounded in evidence.
“It allows people to plan for their future, have access to better jobs and schools, and build financial security. Without it, families are stuck having to choose between rent and everything else, unable to move up the economic ladder,” said Pelletier at a press conference. “We believe housing is a human right.”
Pelletier said housing costs have increased more than 60% over the past 5 years.