WASHINGTON–Rep. Cedric Richmond (D-LA) has introduced the American Housing and Economic Mobility Act in the House, which seeks to reduce rent costs and provide greater access to home ownership through first-time homebuyer payment assistance.
At least one analyst said the introduction of the bill should create a “sense of urgency” for credit unions.
The bill is companion legislation to a similar bill introduced in the Senate by Sen. Elizabeth Warren (D-MA). When Warren introduced her bill she said the cost would be covered by restoring the estate tax on America’s wealthiest families to President George W. Bush-era levels and instituting higher rates above those thresholds. “These [tax] changes will affect only about 10,000 of the wealthiest families in the country,” said Warren in a statement released in conjunction with her legislation.
“Having a home is one of the most essential human needs for thriving families and individuals, but many families long across the nation for far too long have been restricted from homeownership due to increasing rent prices and paychecks that don’t match,” said Richmond in a statement. “The American Housing and Economic Mobility Act is a comprehensive bill aimed to combat the affordable housing crisis that continues to plague our nation. Having stable, affordable housing is life changing and brings the promise of economic freedom to all. This legislation aims to provide that for millions of American families, namely African American communities who have been historically and systematically left without stable housing. I applaud the work of Senator Warren on introducing this bill in the Senate and am honored to carry the torch in introducing it in the House.”
Cosponsors of this bill include Representatives Elijah Cummings (D-MD), Barbara Lee (D-CA), and Gwen Moore (D-WI).
“When Sen. Warren introduced her bill on the subject in September, it was almost guaranteed that a House companion version would eventually emerge,” said John McKechnie, senior partner with the Washington advocacy firm Total Spectrum. “And the fact that Democrats will soon control the House adds an extra measure of urgency to the issue for credit unions. We have good arguments as to why CRA isn’t necessary for credit unions, but we better start preparing to actually voice them—next year this issue could be live in the House.”
Farm Bill Passes
Separately, the Senate has passed the Agriculture and Nutrition Act of 2018 (H.R. 2), better known as the Farm Bill. The bill includes commodity price protections, a crop insurance program, increases USDA-guaranteed farm loans to $1.75 million, and provides for a possible increase in guaranteed USDA rural development loans. It is now up to the House to pass the same legislation.