Issue Position: Housing
Issue Position
Home ownership remains the mainstay of the American dream. As we emerge from the Great Recession and housing crisis of 2008, we have an opportunity to responsibly restore the home mortgage system as cities and suburbs begin to expand again. Housing is also intrinsically tied to inequality. In the Fourth District, we are seeing booming development leading to rent and mortgage costs outpacing wages. Working families are still facing a housing market recovery, high rent and suppressed home values, all while there is limited access to financing for those who can't afford a huge down payment. The federal government has a responsibility to ease access to credit for working families while installing safeguards to prevent a future crisis at the hands of Wall Street. Not only should we work towards a fairer system, we should push towards becoming a country that encourages diverse, vibrant, mixed-income communities for all residents regardless of tax bracket. I will work towards a Fourth District where working families have an even shot at equal, affordable and quality home ownership.
*Extend the Mortgage Forgiveness Debt Relief Act for the long-term. Taxpayers are typically responsible for taxes on loan money received after a loan is cancelled. However, Congress created an exception for homeowners so that they would not be taxed on a home loan during a short sale or debt restructuring.[1] The Mortgage Debt Forgiveness Tax provision is essential to give Americans struggling to modify their mortgages some breathing room. After years of short term stopgap extensions, Congress must seriously address the issue and authorize a multi-year extension. By providing long term certainty to homeowners and lenders, Congress can assure a more stable housing market.
*Provide for easier access to credit for working families by raising Fannie Mae and Freddie Mac's affordable housing targets. A great deal of mortgages in the Fourth District are backed by the federal government. The federal guarantee helps ensure banks are lending and people have access to credit. Without institutions like Fannie Mae, Freddie Mac and the Federal Housing Administration (FHA), home loans would be only for the wealthy. Fannie and Freddie are required to finance a certain percentage of mortgages for low-income borrowers. The current percentages are too low to undo the deep damage of the housing crisis. The 2008 housing crisis disproportionately affected working families and communities of color. It is estimated that as many as 4 million loans were not issued from 2009 to 2013 that would have been issued previously.[2] Federally backed institutions need to put more emphasis in helping folks most affected get back on their feet and have access to reasonable home loans. Congress must push Fannie and Freddie to raise their affordable housing targets so that responsible borrowers in the Fourth District can get a loan and own a home.
*Reinvigorate federal low-income housing rental assistance programs. The federal government's main goals for housing are; to increase rates of homeownership and make rental units affordable. Although progress is being made on homeownership, renters are still facing a lack of affordable places to live. Many people are facing waiting lists several years long to receive rental assistance. Programs like Section 8 rental assistance and the Housing Choice Voucher Program are in need of additional dollars to address the issue. Congress must allocate additional funding to rental assistance programs to support Americans squeezed by rising housing costs.
*Increase mixed income housing by rewarding states and localities that utilize inclusionary zoning. Neighborhoods of people with different backgrounds and income levels benefit from diversity and stability. As the District and surrounding suburbs rapidly expand, expensive new buildings in previously affordable areas are pushing local people out and limiting much-needed diversity. Inclusionary zoning requires that new buildings or developments reserve a certain percentage of new units for people below the average income level. Rent in those units are scaled down according to income. When paired with other zoning reforms, inclusionary zoning can increase overall neighborhood affordability. [3] Congress should encourage cities and local governments to utilize inclusionary zoning by offering a federal match for city and local developer incentives based on the use of mixed income and inclusionary zoning principles.
*House American workers by providing incentives for employers to offer employer-assisted housing programs. Employer-assisted housing (EAH) programs are a "win-win" for businesses and workers. Under an EAH, an employer helps pay an employee's downpayment or subsidize rent in a location close to work. The employee gets an affordable place to live, the employer gets a happy and productive employee. Everyone benefits from a shorter commute. We need to encourage businesses to offer EAH programs. The best way for Congress to create more EAH opportunities is to offer a tax credit for the creation of EAH programs.
*Protect fair housing laws. Racial discrimination in mortgage lending still exists. A recent study found that black borrowers pay .29% more than the average white borrower. [4] The Fair Housing Act (FHA) is designed to prevent discrimination against anyone renting, buying or securing financing for housing. A recent decision by the Supreme Court has limited the reach of the FHA by chipping away at the ability of a plaintiff to prove discrimination through the impact of a business practice.[5] Congress must restore the power of the FHA by passing legislation to reaffirm a plaintiff's right to prove a violation by showing the unfair impact of discriminatory housing practices.
*Provide teeth for Wall Street watchdogs by giving the Consumer Financial Protection Bureau the power and funding to go after irresponsible institutions. As a result of the housing crisis, households from underserved communities suffered a massive loss of generational wealth. This loss was largely due to reckless and irresponsible lending by financial institutions and Wall Street bankers. Since then, Congress created the Consumer Financial Protection Board (CFPB) to enforce rules designed to protect consumers. Although CFPB offers mortgage counseling services and foreclosure help, their ability to punish bad actors is limited. The bureau is also plagued by high turnover as banks can afford to pay more to hire away the regulators. Congress needs to give CFPB the funding to retain skilled professionals who have the mandate to actively enforce consumer protection laws.
*Support the use of housing as the basis for wraparound services to vulnerable adults. Numerous studies and common sense have shown us that the best way to fight homelessness is to first get people off the streets. Once a person has access to stable and affordable housing, they are more likely to hold down a job and contribute to society.[6] Major U.S. cities, including the District of Columbia have used this approach to fight homelessness. [7] The federal government needs to seriously support "housing first" efforts by authorizing a substantial grant program to help cities and states provide housing for the homeless.
*Make lead paint abatement a national priority. Although lead paint was banned decades ago, the effects are still being felt in cities and metropolitan areas across the country.[8] Buildings in poor communities still have lead pipes and paint. Studies show a clear correlation between lead consumption and higher rates of cognitive difficulties, [9] teen pregnancy[10] and crime rates.[11] Despite the monumental effects, federal funding has been relatively small. In 2015, the federal government will pay for abatement work in a little over 3,000 houses.[12] In 2009, the $800 billion stimulus bill only included $100 million for lead abatement.[13] Congress has the responsibility to make a real investment in lead abatement for the good of communities affected by lead paint.
*Ensure that people with disabilities have access to home and community living. Americans with disabilities have the right to be a regular part of their community with a home, job, friends and access to transportation. Yet many disabled Americans remain confined in nursing homes or other isolated settings despite improved outcomes when placed in community based settings. States and the federal government would save money by allowing people with disabilities to stay home and receive service under Medicare and Medicaid rather than paying for institutionalization.[14] The federal government has recently made the determination that services should be delivered at home when possible.[15] Congress needs to support the decision by passing legislation recognizing and funding efforts to guarantee access to community housing for people with disabilities.
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