- Rep. Alexandria Ocasio-Cortez and Sen. Tina Smith introduced a bill to create a $30B federal social housing authority.
- The proposed agency would develop and finance affordable housing projects, focusing on co-ops, community land trusts, and public housing.
- If passed, the Homes Act of 2024 would generate 1.25M housing units over 10 years, targeting areas hardest hit by housing shortages.
According to Bloomberg, Rep. Alexandria Ocasio-Cortez and Sen. Tina Smith introduced the Homes Act of 2024, proposing the creation of a federal social housing authority with a $30 billion annual budget to address the affordable housing crisis.
How It Works
The bill seeks to offer a public alternative to private developers to meet the growing need for affordable housing, particularly for low-income households.
The new agency would provide financing and development for resident-owned co-ops, community land trusts, and public housing projects.
The proposed social housing authority would operate under HUD, offering upfront grants and low-interest loans.
Projects financed through the agency would set aside 40% of units for extremely low-income households and 30% for low-income households, ensuring affordability for decades.
Global, Local Models
The bill draws on successful social housing programs in Austria and Denmark but is designed for U.S. conditions.
It builds on local nonprofit housing strategies seen in New York City and Vermont, positioning it as a public option for affordable housing development.
Challenges Ahead
While the plan represents a bold effort to address the affordable housing crisis, the $30B annual funding requirement faces tough odds in Congress.
Advocates argue, however, that the proposal’s scale is essential to meet the growing housing demand and secure long-term affordability.
