Warren, Warnock, Cleaver Lead Reintroduction of Landmark Bill to Tackle U.S. Housing Crisis

Washington, D.C. – United States Senators Elizabeth Warren (D-Mass.) and Raphael Warnock (D-Ga.), members of the Senate Committee on Banking, Housing, and Urban Affairs, and Representative Emanuel Cleaver (D-Mo), Ranking Member of the Housing and Insurance Subcommittee of the House Committee on Financial Services, reintroduced the American Housing and Economic Mobility Act, landmark legislation to tackle the housing crisis, bring down costs for renters and buyers, and help working families everywhere find a decent place to live at a decent price.

Senate cosponsors include Senators Richard Blumenthal (D-Conn.), Mazie Hirono (D-Hawaii), Edward J. Markey (D-Mass.), Jeff Merkley (D-Ore.), Bernie Sanders (I-Vt.), and Peter Welch (D-Vt.). House cosponsors include Representatives Jan Schakowsky (D-Ill.), Eleanor Holmes Norton (D-D.C.), Ro Khanna (D-Calif.), Barbara Lee (D-Calif.), Gwen Moore (D-Wis.), Cori Bush (D-Mo.), Becca Balint (D-Vt.), Maxwell Frost (D-Fla.), Jonathan Jackson (D-Ill.), Suzanne Bonamici (D-Ore.), Jahana Hayes (D-Conn.), Rashida Tlaib (D-Mich.), Delia Ramirez (D-Ill.), Chuy Garcia (D-Ill.), Ayanna Pressley (D-Mass.), Gabe Amo (D-R.I.), Ilhan Omar (D-Minn.), Alexandria Ocasio-Cortez (D-N.Y.), Al Green (D-Texas), and Jimmy Gomez (D-Calif.).

According to an independent analysis by the non-partisan Moody’s Analytics, the bill would build or rehabilitate nearly 3 million housing units over the next decade and bring down rents for lower-income and middle-class families by 10%, saving the average family $140 per month. To fully offset the cost of this historic effort, the bill returns the estate tax thresholds to their levels at the end of the George W. Bush administration, institutes more progressive rates above those thresholds, and closes certain loopholes.

“The only way to dig our country out of this housing crisis is to build more housing so everyone has a place to call home,” said Senator Warren. “My bill will make bold investments in our country’s housing and encourage local innovation to lower housing costs even more — and it’s all paid for by getting America’s wealthiest families to chip in.”

“Housing means dignity, safety, and security, and as a Senator who grew up in public housing, I know that strengthening housing availability and affordability is critical to helping folks establish a solid foundation to build a healthy future,” said Senator Reverend Raphael Warnock. “That is why I am proud to join Senator Warren and my colleagues in fighting for this transformational legislation that will unleash construction of millions of new homes and create hundreds of thousands of new jobs in the process.

"The failure to address our national housing shortage has driven up costs that make homeownership difficult, increased rent burdens in communities across the country, and pushed far too many Americans into homelessness,” said Congressman Cleaver. “Not only does this preclude working class Americans from obtaining safe, stable, and secure housing, but it prevents millions of our fellow citizens, particularly those in minority communities, from climbing the economic ladder and building generational wealth. I’m proud to introduce the American Housing and Economic Mobility Act with Senator Warren, which will spur the construction and rehabilitation of three million units nationwide, help to lower housing costs, and expand economic opportunity to families throughout the United States.”

“This transformative measure delivers the bold action we need to address the burgeoning housing crisis facing workers and families nationwide,” said Senator Blumenthal. “We must make major investments in new housing—before sky-high prices make decent homes totally unaffordable for American families. These investments will spur construction, and make both renting and buying homes financially viable. Our American Housing and Economic Mobility Act will help lower prices for renters and buyers with significant investments in home construction and commonsense reforms to rectify decades of housing discrimination.”

“The affordable housing crisis in Massachusetts and across the country has burdened families and communities for far too long. The American Housing and Economic Mobility Act makes bold investments to equitably develop new affordable housing, limits private equity in the housing market, provides grants to first-time and first generation homebuyers, and cracks down on housing discrimination,” said Senator Markey. “I will continue to fight to ensure everyone has affordable, equitable, housing access in Massachusetts and across the country, and am proud to work alongside Senator Warren and our colleagues to get the job done.”

“Oregonians and families all over the nation are struggling under the crushing weight of the affordable housing crisis," said Senator Merkley. “Enough is enough—no one should live in a country where people don't have a roof over their head, or are forced to choose between paying rent and filling a prescription or buying groceries. Congress must pass bold solutions like the American Housing and Economic Mobility Act to increase housing options for families and strengthen the federal housing aid needed to tackle America’s housing emergency.”

“Everyone deserves a chance at the American dream. But our housing crisis is exacerbating an affordability crisis — especially in rural America. It’s harder than ever before for folks in Vermont, and across America, to buy a home – or even think about saving enough for a down-payment,” said Senator Welch. “This bill will deliver historic federal investments to lower housing costs, create grant programs that support borrowers, and ensure that everyone – in every zip-code – can find a place to live at a fair, affordable price.”

The American Housing and Economic Mobility Act would:

• Leverage federal funding to build nearly 3 million new housing units – bringing down rents for lower-income and middle-class families by 10% according to an independent analysis from Moody’s Analytics
• Provide assistance to people hurt by federal housing policy failures, including through:
  • Down payment assistance to first-time, first-generation homebuyers
  • VA-guaranteed home loan eligibility for descendants of certain veterans
  • A grant program for communities with an appraisal gap

  Nearly 50 non-profit organizations, ranging from unions to housing advocates, have endorsed the bill, including the Leadership Conference on Civil and Human Rights, the National Low Income Housing Coalition, the National Community Reinvestment Coalition, and the American Federation of Labor and Congress of Industrial Organizations (AFL-CIO). A coalition of Massachusetts mayors, civil rights groups, the National Rural Housing Coalition, and the Cooperative Credit Union Association submitted letters of support. Additionally, in 2019, the Native American Indian Housing Council adopted a resolution endorsing the bill, which remains effective today.

  "The American Housing and Economic Mobility Act has the power to transform lives and communities. By significantly expanding investments in proven solutions, like the national Housing Trust Fund and Public Housing, this legislation provides resources at the scale necessary to help those most harmed by America’s housing crisis,” said Diane Yentel, president and CEO of the National Low Income Housing Coalition. “I applaud Senator Warren, Senator Warnock, and Representative Cleaver for their leadership in advancing bold solutions to address an underlying cause of America’s housing crisis: the severe shortage of rental homes affordable to our nation’s lowest-income and most marginalized households.”

  “We applaud Senator Warren for introducing this critically important piece of legislation,” said Mitria Spotser, Vice President of Federal Policy at the Center for Responsible Lending. “The American Housing and Economic Mobility Act will not only increase housing affordability and expand access but will also honor our nation’s promise to its servicemembers by ensuring that the families of those veterans who did not benefit from the VA home loan program now have an opportunity to do so. All members of Congress should support these efforts.”

  “Anybody who cares about repairing what’s broken in American society understands that getting housing costs back in line with what working-class people can really afford is a mandatory step in that process,” said Jesse Van Tol, President and CEO of the National Community Reinvestment Coalition (NCRC). “This important legislation may have an acronym that sounds like someone politely asking for your attention, but the tens of millions of families that can hardly make ends meet because of the issues AHEM addresses are ready to scream. I applaud Senator Warren and Representative Cleaver for continuing to push for a sensible and sustainable set of policies that would allow all Americans to thrive.”

  “The National Community Stabilization Trust (NCST) commends Senator Warren for uplifting the importance of affordable homeownership, increasing household prosperity, and strengthening neighborhoods. The American Economic Housing and Mobility Act (AHEM) works to undo the decades of damage done by government policies that have locked people of color out of homeownership for far too long,” said Christopher Tyson, President of the National Community Stabilization Trust. “Not only does this bill help homeowners qualify for mortgages by providing down payment assistance, but it also addresses the inventory crisis through land use reform, improved distressed sales practices, and assistance to communities fighting blight. Without this strong focus on revitalizing communities and increasing the supply of move-in ready houses, home prices will continue to spiral out of reach for most hardworking families.”

  "Our devastating housing affordability crisis has reached a point where something has to give: we can continue to prioritize profits for Wall Street and private equity firms, or we invest in affordable housing and address historical harms that have excluded too many from homeownership," said Caroline Nagy, Senior Policy Counsel for Housing, Corporate Power, and Climate Justice at Americans for Financial Reform. "We desperately need to invest in building more affordable housing and maintaining our public housing, and for these reasons we applaud the introduction of the American Housing Economic Mobility Act."

  “We proudly support the American Housing and Economic Mobility Act introduced by Senator Warren and Congressman Cleaver,” said Sharon Cornelissen, Director of Housing at the Consumer Federation of America. “In the wake of the pandemic and amidst ever-surging housing prices and limited supply, millions of consumers across the country are struggling to afford to rent or buy a home. This bill would turbocharge affordable housing construction, incentivize communities to remove exclusionary and unfair zoning restrictions, and ensure that first-time, first-generation homebuyers including veterans get their chance at building wealth through homeownership too.”

  “This bill offers serious actions to lower housing costs for everyday families,” said Caroline Ciccone, President of Accountable.US. “So much pressure will be lifted from the housing market and inflation by providing aid to first-time home buyers, building millions of new units, restoring the estate tax on the wealthiest few, and restricting Wall Street private equity firms from hoarding properties. We thank Sen. Warren and the cosponsors for their leadership on common sense policies to help millions of working families get closer to the American dream.”

  The full list of endorsing organizations includes:

  • Unions: American Federation of State, County and Municipal Employees (AFSCME), American Federation of Labor and Congress of Industrial Organizations (AFL-CIO), National Education Association (NEA), American Federation of Government Employees (AFGE), American Federation of Teachers (AFT)
  • Housing Organizations: National Low Income Housing Coalition, National Housing Law Project, National Rural Housing Coalition, National Community Stabilization Trust, Native American Indian Housing Council, National Housing Resource Center, National Neighborworks Association, Center for NYC Neighborhoods, National Women’s Shelter Network, National Coalition for the Homeless, National Coalition for Asian Pacific American Community Development (National CAPACD)
  • Civil Rights Organizations: The Leadership Conference on Civil and Human Rights, National Urban League, National Women’s Law Center, Coalition on Human Needs, National Council of Asian Pacific Americans (NCAPA), NETWORK Lobby for Catholic Social Justice, Poverty & Race Research Action Council, Massachusetts Action for Justice, Mountain State Justice, Coalition for Social Work and Health, National Fair Housing Alliance, African Communities Together, Appleseed Foundation, National Disability Rights Network (NDRN)
  • Consumer Protection Organizations: Consumer Federation of America, Center for Responsible Lending, National Consumer Law Center (on behalf of its low-income clients), Consumer Action
  • Economic Justice Organizations: Americans for Financial Reform, Rise Economy (formerly California Reinvestment Coalition), National Community Reinvestment Coalition, Patriotic Millionaires, United for a Fair Economy, Responsible Wealth, Community Opportunity Alliance (formerly NACEDA), Progressive Democrats of America, Groundwork Collaborative, Voices for Progress, Liberation in a Generation, National Association for Latino Community Asset Builders (NALCAB), Accountable.US, Empire State Justice
  • Credit Unions: Cooperative Credit Union Association