[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4266 Introduced in House (IH)]
<DOC>
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. 127