The Senate approved a bipartisan affordable housing package Monday, advancing one of Congress’ most significant efforts in years to address the nation’s housing shortage and rising homeownership costs.
The legislation now heads to the House, where lawmakers are expected to take up the measure before the end of the week.
If approved by the House, the bill will be sent to President Donald Trump for his signature.
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The measure comes as housing affordability remains a major concern for voters ahead of the November midterm elections.
Lawmakers from both parties have argued that the nation’s housing shortage has contributed to higher home prices and rising rents across much of the country.
The United States has faced a shortage of affordable housing for years.
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Housing experts have pointed to several factors behind the problem, including restrictive zoning rules, rising construction costs, labor shortages and the lingering effects of the 2008 financial crisis.
The shortage has been especially pronounced in parts of the Southeast, the industrial Midwest and the Southwest.
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Estimates vary widely regarding the number of additional homes needed nationwide.
Some analyses place the shortfall at roughly 1.5 million homes, while others estimate the gap could exceed 7 million units.
The legislation attempts to address those challenges through a combination of regulatory reforms, financing programs and limits on large-scale institutional ownership of single-family homes.
One of the bill’s most closely watched provisions would cap the number of single-family homes that Wall Street investment firms can own at 350 properties per company.
Supporters of the provision argue that large investment firms have contributed to higher housing costs by purchasing homes in bulk and outbidding individual buyers.
An earlier version of the legislation would have required investors exceeding the cap to sell off their excess holdings within seven years.
That provision was removed before final Senate passage.
The bill also seeks to speed up construction by streamlining environmental review requirements for certain housing projects.
Supporters contend that lengthy permitting and review processes have delayed development and increased costs.
Additional provisions would expand access to federal block grants that states can use to support housing construction and affordability initiatives.
The legislation would also make changes to a Department of Agriculture rural housing program designed to increase housing opportunities in smaller communities.
Rather than creating a single new housing program, the bill combines dozens of previously approved housing measures into one package.
According to lawmakers, the final legislation includes 36 housing proposals previously passed by the Senate and 11 housing measures approved by the House earlier this year.
Backers say the approach allowed Congress to combine bipartisan ideas into a comprehensive package aimed at increasing housing supply.
The legislation also includes a pilot program designed to expand access to small-dollar mortgages.
The program would focus on loans with principal balances of $100,000 or less, helping buyers in lower-cost housing markets obtain financing.
Supporters say the initiative could benefit first-time homebuyers and those seeking affordable homes in rural and smaller metropolitan areas.
The push comes as the average age of a first-time homebuyer continues to rise.
According to supporters of the bill, the average first-time homebuyer is now 40 years old.
Higher borrowing costs have added to affordability challenges for prospective buyers.
Senate Banking Committee Chairman Tim Scott, R-S.C., praised the legislation and said it would help increase housing supply while reducing costs.
Scott said the bill would “lower costs, expand housing supply, cut red tape.”
Sen. Elizabeth Warren, D-Mass., the committee’s ranking member, also supported the measure, Newsmax reported.
Warren described it as “the biggest housing bill in more than 30 years.”
Both parties have emphasized the importance of addressing housing affordability as voters continue to cite economic concerns among their top priorities.
This article may contain commentary which reflects the author’s opinion.
