[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4266 Introduced in House (IH)]
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119th CONGRESS
1st Session
H. R. 4266
To require that any amounts received by the Federal Government as a
result of the release of the Federal National Mortgage Association and
the Federal Home Loan Mortgage Corporation be used for State housing
revolving loan funds for middle-class housing supply, and for other
purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 30, 2025
Mr. Suozzi (for himself and Ms. Malliotakis) introduced the following
bill; which was referred to the Committee on Financial Services
_______________________________________________________________________
A BILL
To require that any amounts received by the Federal Government as a
result of the release of the Federal National Mortgage Association and
the Federal Home Loan Mortgage Corporation be used for State housing
revolving loan funds for middle-class housing supply, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Housing for US Act''.
SEC. 2. AMOUNTS RECEIVED FROM RELEASE OF FEDERAL NATIONAL MORTGAGE
ASSOCIATION AND FEDERAL HOME LOAN MORTGAGE CORPORATION.
(a) In General.--Notwithstanding any other provision of law, any
amounts received by the Federal Government as a result of the release
of the Federal National Mortgage Association and the Federal Home Loan
Mortgage Corporation shall be transferred to a trust fund to be used
solely for the purpose described in section 3 for a period of 10 years
after the date of such transfer.
(b) Deficit Reduction.--On the date that is 10 years after the
transfer described in subsection (a), the capitalization loans
described in section 3 shall be paid back by the States to the General
Fund of the Treasury, dedicated for the sole purpose of deficit
reduction.
SEC. 3. REVOLVING LOAN FUND FOR MIDDLE-CLASS HOUSING SUPPLY.
(a) Definitions.--In this section:
(1) Secretary.--The term ``Secretary'' means the Secretary
of Housing and Urban Development.
(2) State.--The term ``State'' means each of the several
States, the District of Colombia, and the territories of the
United States.
(3) Eligible entity.--The term ``eligible entity'' means a
local government or non-profit organization that receives a
loan from a State loan fund.
(b) General Authority.--
(1) Loans to states to establish state loan funds.--
(A) In general.--The Secretary shall, to the extent
that amounts are available under section 2 and the
extent that States meet the requirements of this Act,
enter into agreements with States to make
capitalization loans, out of amounts received pursuant
to section 2, to such States for the establishment of
housing revolving loan funds for providing funding
assistance to eligible entities to carry out eligible
projects under this section to increase the supply of
housing available for middle-class Americans, as
determined by the Secretary.
(B) Agreements.--Any agreement entered into under
this section shall require States to--
(i) comply with the requirements of this
section; and
(ii) use accounting, audit, and fiscal
procedures conforming to generally accepted
accounting standards.
(C) Establishment of fund.--To be eligible to
receive a capitalization loan under this section, a
State shall establish a housing revolving loan fund
(referred to in this section as a ``State loan fund'')
and comply with the other requirements of this section.
Each loan to a State under this section shall be
deposited in the State loan fund established by the
State, except as otherwise provided in this section.
(D) Extended period.--The loan to a State shall be
available to the State for obligation during the fiscal
year for which the funds are authorized and during the
following fiscal year.
(E) Allotment formula.--Funds made available to
carry out this section shall be allotted to States that
have entered into an agreement pursuant to this section
based on, as determined by the Secretary--
(i) the share of total need for an
increased supply of affordable housing for
families of different sizes between 80 and 165
percent of the area median income;
(ii) inadequate housing supply and
substandard housing in the State;
(iii) costs of producing housing in the
State, including increased funds in States with
a high cost of producing housing; and
(iv) any other factors as determined by the
Secretary.
(2) Use of funds.--
(A) In general.--Except as otherwise authorized by
this section, amounts deposited in a State loan fund,
including loan repayments and interest earned on such
amounts, shall be used only for providing loans or loan
guarantees to eligible entities, or as a source of
reserve and security for leveraged loans, the proceeds
of which are deposited in a State loan fund established
under paragraph (1).
(B) Eligible uses.--Financial assistance provided
to an eligible entity under this section may be used by
such entity to--
(i) support homeownership and rental
housing affordability, as described in
subsection (g), for middle-income persons and
families through the new construction or
rehabilitation of housing;
(ii) conduct related activities including
real property acquisition, site improvement,
conversion, demolition;
(iii) provide for other expenses, including
financing costs and relocation expenses of any
displaced persons, families, businesses, or
organizations; or
(iv) provide for the payment of reasonable
administrative and planning costs.
(C) Ineligible uses.--Funds provided under this
section may not be used to--
(i) modernize public housing;
(ii) provide tenant-based assistance under
section 8(o) of the United States Housing Act
of 1937 (42 U.S.C. 1437f(o));
(iii) support ongoing operational costs of
rental housing;
(iv) pay back taxes or fees on properties
that are or will be assisted under this
section; and
(v) provide non-Federal matching funds for
any other Federal program.
(D) Sale of bonds.--Funds may also be used by a
State as a source of revenue (restricted solely to
interest earnings of the applicable State loan fund) or
security for payment of the principal and interest on
revenue or general obligation bonds issued by the State
to provide matching funds under subsection (d), if the
proceeds of the sale of the bonds will be deposited in
the State loan fund.
(3) Limitation.--No assistance under this section shall be
provided to an eligible entity that does not have the
technical, managerial, and financial capability to ensure
compliance with the requirements of this section.
(c) Fund Management.--Each State loan fund under this section shall
be established, maintained, and credited with repayments and interest.
The fund corpus shall be available in perpetuity for providing
financial assistance under this section. To the extent amounts in the
fund are not required for current obligation or expenditure, such
amounts shall be invested in interest bearing obligations.
(d) State Contribution.--Each agreement under subsection (b) shall
require that the State deposit in the State loan fund from cash
contributions from non-Federal resources an amount equal to at least 20
percent of the total amount of the loan to be made to the State on or
before the date on which the loan payment is made to the State.
(e) Types of Assistance.--Except as otherwise limited by State law,
the amounts deposited into a State loan fund under this section may be
used only--
(1) to make loans to eligible entities for the purposes
described in subsection (b)(2), on the condition that--
(A) the interest rate for each loan is less than or
equal to the market interest rate, including an
interest-free loan;
(B) principal and interest payments on each loan
will commence not later than 18 months after completion
of the project for which the loan was made;
(C) each loan will be fully amortized not later
than 30 years after the completion of the project,
except that a State may provide an extended term for a
loan, if the extended term--
(i) terminates not later than the date that
is 40 years after the date of project
completion; and
(ii) does not exceed the expected design
life of the project;
(D) the recipient of each loan will establish a
dedicated source of revenue (or, in the case of a
privately owned system, demonstrate that there is
adequate security) for the repayment of the loan; and
(E) the State loan fund will be credited with all
payments of principal and interest on each loan;
(2) to buy or refinance the debt obligation of a
municipality or an intermunicipal or interstate agency within
the State at an interest rate that is less than or equal to the
market interest rate in any case in which a debt obligation is
incurred after the date this bill takes effect;
(3) to guarantee, or purchase insurance for, a local
obligation (all of the proceeds of which finance a project
eligible for assistance under this section) if the guarantee or
purchase would improve credit market access or reduce the
interest rate applicable to the obligation;
(4) as a source of revenue or security for the payment of
principal and interest on revenue or general obligation bonds
issued by the State if the proceeds of the sale of the bonds
will be deposited into the State loan fund; and
(5) to earn interest on the amounts deposited into the
State loan fund.
(f) Administration of State Loan Funds.--
(1) Combined financial administration.--A State may (as a
convenience and to avoid unnecessary administrative costs)
combine, in accordance with State law, the financial
administration of a State loan fund established under this
section with the financial administration of any other
revolving fund established by the State if otherwise not
prohibited by the law under which the State loan fund was
established and if the Secretary determines that--
(A) the loans under this section, together with
loan repayments and interest, will be separately
accounted for and used solely for the purposes
specified in subsection (b); and
(B) the authority to establish assistance
priorities and carry out oversight and related
activities (other than financial administration) with
respect to assistance remains with the State agency
having primary responsibility for administration of the
State program, after consultation with other
appropriate State agencies (as determined by the
State).
(2) Cost of administering fund.--
(A) Authorization.--
(i) In general.--For each fiscal year, a
State may use the amount described in clause
(ii)--
(I) to cover the reasonable costs
of administration of the programs under
this section, including the recovery of
reasonable costs expended to establish
a State loan fund that are incurred
after the date this section takes
effect; and
(II) to provide technical
assistance to eligible entities within
the State.
(ii) Description of amount.--The amount
referred to in clause (i) is an amount equal to
the sum of--
(I) the amount of any fees
collected by the State for use in
accordance with clause (i)(I),
regardless of the source; and
(II) the greatest of--
(aa) $400,000;
(bb) \1/5\ percent of the
current valuation of the fund;
and
(cc) an amount equal to 4
percent of all loan awards to
the fund under this section for
the fiscal year.
(B) Additional use of funds.--For fiscal year 2026
and each fiscal year thereafter, each State may use up
to an additional 10 percent of the funds allotted to
the State under this section to administer or provide
technical assistance to eligible entities.
(C) Technical assistance.--An additional 2 percent
of the funds annually allotted to each State under this
section may be used by the State to provide technical
assistance to eligible entities serving 10,000 or fewer
persons in the State.
(3) Guidance and regulations.--The Secretary shall publish
guidance and promulgate regulations as may be necessary to
carry out the provisions of this section, including--
(A) provisions to ensure that each State commits
and expends funds allotted to the State under this
section as efficiently as possible in accordance with
this section and applicable State laws;
(B) guidance to prevent waste, fraud, and abuse;
and
(C) guidance to ensure that the States, and
eligible entities, use accounting, audit, and fiscal
procedures that conform to generally accepted
accounting standards.
(4) State report.--Each State administering a State loan
fund and assistance program under this subsection shall publish
and submit to the Secretary a report every 2 years on its
activities under this section, including the findings of the
most recent audit of the fund and the entire State allotment.
The Secretary shall periodically audit all State loan funds
established by, and all other amounts allotted to, the States
pursuant to this section in accordance with procedures
established by the Comptroller General.
(g) Qualified Housing.--
(1) Rental housing.--
(A) In general.--For not less than 15 years after
housing is assisted under this section, housing that is
for rental shall qualify as affordable housing under
this section only if the housing--
(i) bears rents that--
(I) are not greater than the
existing fair market rent for
comparable units in the area, as
established by the Secretary; or
(II) does not exceed 30 percent of
165 percent of the median income for
the area and is not below 30 percent of
80 percent of the median income for the
area, as determined by the Secretary,
with adjustment for number of bedrooms
in the unit, except that the Secretary
may establish higher or lower income
parameters on the basis of the
Secretary's findings that such
variations are necessary because of
prevailing levels of construction costs
or fair market rents, or unusually high
or low family incomes;
(ii) is occupied only by households with
income at or lower than the area median income
at which the rental price would be 30 percent
of the area median income; and
(iii) if newly constructed, meets the same
energy efficiency standards promulgated by the
Secretary pursuant to section 109 of the
Cranston-Gonzalez National Affordable Housing
Act (42 U.S.C. 12709).
(B) Adjustment of qualifying rent.--The Secretary
may adjust the qualifying rent established for a
project under subparagraph (A), only if the Secretary
finds that such adjustment is necessary to support the
continued financial viability of the project and only
by such amount as the Secretary determines is necessary
to maintain continued financial viability of the
project.
(C) Mixed-income project.--Housing that accounts
for less than 100 percent of the dwelling units in a
project financed under this section shall qualify for
loans under this section if such housing meets the
criteria of this Act.
(D) Mixed-use project.--Housing in a project that
is designed in part for uses other than residential use
shall qualify for loans under this section if such
housing meets the criteria of this Act.
(E) Waiver of qualifying rent.--For the purpose of
providing affordable housing, the Secretary may, upon
the application of the project owner, waive the
applicability of subparagraph (A) with respect to a
dwelling unit if--
(i) the rent for the unit is not greater
than the existing fair market rent for
comparable units in the area, as established by
the Secretary; and
(ii) the Secretary determines that the
waiver, together with waivers under this
paragraph for other dwelling units in the
project, will result in the use of amounts in
an effective manner that will improve the
provision of affordable housing for such
families.
(2) Homeownership.--Housing that is for homeownership shall
qualify as affordable housing under this section only if the
housing--
(A) with respect to housing with 5 or more units,
includes--
(i) 50 percent of such housing units that
are affordable for families whose income is
between 120 and 165 percent of the median
income for the area, as determined by the
Secretary; and
(ii) 20 percent of such housing units that
are affordable for families whose income is
under 80 percent of the median income for the
area, as determined by the Secretary;
(B) with respect to housing with 1 to 4 units, is
affordable for families whose income is between 80 and
165 percent of the median income for the area, as
determined by the Secretary;
(C) is subject to resale restrictions, for 5 years,
that are established by the eligible entity and
determined by the Secretary to be appropriate to--
(i) allow for subsequent purchase of the
property only by persons who meet the
qualifications specified under subparagraphs
(A) and (B), at a price which will--
(I) provide the owner with a fair
return on investment, including any
improvements, and
(II) ensure that the housing will
remain affordable to a reasonable range
of middle-income homebuyers; or
(ii) recapture the investment provided
under this section in order to assist other
persons in accordance with the requirements of
this section, except where there are no net
proceeds or where the net proceeds are
insufficient to repay the full amount of the
assistance; and
(D) if newly constructed, meets the same energy
efficiency standards promulgated by the Secretary
pursuant to section 109 of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 12709).
(h) Labor Requirements.--An eligible entity that receives a loan
under this section must comply with the following requirements with
respect to urban areas with an average greater than 2,000 housing units
per adjacent census block:
(1) Apprenticeship requirements.--The requirements
described in this paragraph with respect to the construction of
any housing unit are as follows:
(A) Labor hours.--Eligible entities shall ensure
that, with respect to the construction of any housing
unit, not less than 15 percent of the total labor hours
of the construction, alteration, or rehabilitation work
(including such work performed by any contractor or
subcontractor) with respect to such unit shall, subject
to subparagraph (B), be performed by qualified
apprentices.
(B) Apprentice to journeyworker ratio.--The
requirement under subparagraph (A) shall be subject to
any applicable requirements for apprentice-to-
journeyworker ratios of the Department of Labor or the
applicable State apprenticeship agency.
(C) Participation.--Each eligible entity,
contractor, or subcontractor who employs 4 or more
individuals to perform construction, alteration, or
repair work with respect to the construction of a
housing unit shall employ 1 or more qualified
apprentices to perform such work.
(D) Exception.--
(i) In general.--An eligible entity shall
not be treated as failing to satisfy the
requirements of this paragraph if such eligible
entity--
(I) satisfies the requirements
described in clause (ii); or
(II) in the case of any failure by
the eligible entity to satisfy the
requirement under subparagraphs (A) and
(C) with respect to the construction,
alteration, or rehabilitation work on
any housing unit to which subclause (I)
does not apply, makes payment to the
Secretary of a penalty in an amount
equal to the product of--
(aa) $50; multiplied by
(bb) the total labor hours
for which the requirement
described in such subparagraph
was not satisfied with respect
to the construction,
alteration, or repair work on
such housing unit.
(ii) Good faith effort.--For purposes of
clause (i), an eligible entity shall be deemed
to have satisfied the requirements under this
paragraph with respect to a housing unit if
such eligible entity has requested qualified
apprentices from a registered apprenticeship
program, and--
(I) such request has been denied,
provided that such denial is not the
result of a refusal by the eligible
entity or any contractors or
subcontractors engaged in the
performance of construction,
alteration, or repair work with respect
to such housing unit to comply with the
established standards and requirements
of the registered apprenticeship
program; or
(II) the registered apprenticeship
program fails to respond to such
request within 5 business days after
the date on which such registered
apprenticeship program received such
request.
(E) Definitions.--For purposes of this paragraph--
(i) Labor hours.--The term ``labor
hours''--
(I) means the total number of hours
devoted to the performance of
construction, alteration, or repair
work by any individual employed by the
eligible entity or by any contractor or
subcontractor; and
(II) excludes any hours worked by--
(aa) foremen;
(bb) superintendents;
(cc) owners; or
(dd) persons employed in a
bona fide executive,
administrative, or professional
capacity (within the meaning of
those terms in part 541 of
title 29, Code of Federal
Regulations).
(ii) Qualified apprentice.--The term
``qualified apprentice'' means an individual
who is employed by the eligible entity or by
any contractor or subcontractor and who is
participating in a registered apprenticeship
program.
(2) Prevailing wage requirements.--
(A) Davis-bacon.--All laborers and mechanics
employed by contractors or subcontractors in the
performance of construction, alteration, or repair work
on a project assisted in whole or in part by funding
made available under this section shall be paid wages
at rates not less than those prevailing on similar
projects in the locality, as determined by the
Secretary of Labor in accordance with subchapter IV of
chapter 31 of title 40, United States Code (commonly
referred to as the ``Davis-Bacon Act'').
(B) Authority.--With respect to the labor standards
specified in subparagraph (A), the Secretary of Labor
shall have the authority and functions set forth in
Reorganization Plan No. 14 of 1950 (64 Stat. 1267; 5
U.S.C. App.) and section 3145 of title 40, United
States Code.
(3) I-9 compliance.--The eligible entity or any contractor
or subcontractor in the construction of any housing unit shall
complete documentation to establish that any laborers or
mechanics employed by the eligible entity or any contractor or
subcontractor is eligible to work in the United States, in
accordance with part VIII of subchapter II of chapter 12 of
title 8, United States Code.
(4) Project labor agreements.--
(A) In general.--A contractor for a project carried
out under this section that is a construction project
shall be a party to a covered project labor agreement.
(B) Definitions.--In this paragraph:
(i) Covered project labor agreement.--The
term ``covered project labor agreement'' means
a project labor agreement that--
(I) binds all contractors and
subcontractors on the construction
project through the inclusion of
appropriate specifications in all
relevant solicitation provisions and
contract documents;
(II) allows all contractors and
subcontractors to compete for contracts
and subcontracts without regard to
whether they are otherwise a party to a
collective bargaining agreement;
(III) contains guarantees against
strikes, lockouts, and other similar
job disruptions;
(IV) sets forth effective, prompt,
and mutually binding procedures for
resolving labor disputes arising during
the covered project labor agreement;
and
(V) provides other mechanisms for
labor-management cooperation on matters
of mutual interest and concern,
including productivity, quality of
work, safety, and health.
(ii) Project labor agreement.--The term
``project labor agreement'' means a pre-hire
collective bargaining agreement with one or
more labor organizations that establishes the
terms and conditions of employment for a
specific construction project and is described
in section 8(f) of the National Labor Relations
Act (29 U.S.C. 158(f)).
(5) Responsible contractor policy.--Any contractor or
subcontractor for a project carried out with funds provided
under this section shall--
(A) follow all applicable Federal, State, and local
laws, including such laws related to required licenses,
registrations, certifications, insurance, and other
credentials;
(B) within the previous 10 years, not have been
convicted of any crime relating to the contracting
business of such contractor or subcontractor; and
(C) within the previous 8 years, not have--
(i) been debarred or suspended by a
Federal, State, or local government agency or
authority;
(ii) defaulted on a project;
(iii) had any type of business, contracting
or trade license, registration, or other
certification revoked or suspended; and
(iv) been found in violation of any law
applicable to the business of the contractor or
subcontractor, including licensing, tax, wage
and hour, prevailing wage, labor, employment,
environmental, safety laws, or others, where
the result of such violation was the payment of
a fine, back pay damages or any other type of
penalty in the amount of $5,000 or more.
(6) Regulations and guidance.--The Secretary shall issue
such regulations or other guidance as the Secretary determines
necessary to carry out the purposes of this subsection,
including regulations or other guidance which provides for
requirements for recordkeeping or information reporting for
purposes of administering the requirements of this subsection.
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