H.R. 4266: Housing for US Act

The proposed bill, known as the Housing for US Act, aims to establish a structured approach for utilizing funds received by the federal government from certain federal mortgage associations. Here's a breakdown of its key components:

Funding and Trust Fund Creation

The bill mandates that any money received from the release of the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac) be transferred to a trust fund dedicated specifically to enhancing middle-class housing supply. This fund will be used to create State housing revolving loan funds for ten years. After that period, states are required to repay the funds to the U.S. Treasury for deficit reduction.

Establishment of State Housing Revolving Loan Funds

The bill empowers the Secretary of Housing and Urban Development to work with states to establish these loan funds. States must meet certain criteria to receive capitalization loans and are required to:

• Create a housing revolving loan fund dedicated to increasing housing availability for middle-class families.
• Follow strict financial management procedures, ensuring compliance with generally accepted accounting standards.

Eligible Projects and Use of Funds

The loan funds can be designated for:

• Construction or rehabilitation of homes for sale or rent.
• Supporting related activities such as property acquisition and site improvements.
• Covering financing costs and relocation expenses for affected individuals or businesses.

However, the funds cannot be used for certain purposes, such as operational costs of rental housing or modernizing public housing.

Loan and Repayment Conditions

Each state fund must allow for loans that have favorable interest rates (at or below market rates), with specified terms for repayment that cannot exceed 30 years. Additionally, states must contribute a certain percentage from non-federal sources as a condition for receiving funds.

Reporting and Oversight

States receiving funds must submit biennial reports to the Secretary, detailing their activities and financial status. The Secretary will also audit these funds periodically to ensure compliance and prevent any misuse.

Housing Affordability Requirements

For housing projects funded under this act, specific affordability criteria must be met, including limits on rent based on area median income. The Secretary of Housing and Urban Development is given the authority to adjust these limits as necessary to allow for viability and affordability, especially for rental and homeownership units.

Labor Requirements

The bill sets forth labor standards for any construction related to funded projects. This includes:

• Ensuring a percentage of labor hours are performed by qualified apprentices.
• Adhering to prevailing wage laws for laborers and mechanics involved in the construction, which ensures fair pay similar to other projects in the locality.

Project Labor Agreements

If the project involves construction, contractors must engage in a project labor agreement that provides clear terms regarding employment conditions and disputes. This aims to foster cooperation between labor and management during construction.

Administrator Responsibilities

The Secretary will be responsible for enforcing compliance with various laws and standards, including overseeing the effective use of funds and ensuring that all parties engaged in construction abide by federal, state, and local regulations.

Relevant Companies

None found.