We have a low income housing crisis in the United States of America. We need to build three million units of low income housing per year. If the United States Government would loan $45 billion per year at 2% interest, we could build three million units of low income housing per year. All that’s needed is a political will to do this. The coalition will work with Senators, Congressman, and HUD to put in place this program.
That the Federal Government will create a loan fund of $45,000,000,000.00 to support the construction of low income housing in the country. These funds will qualify for 4% Low Income Tax credits
This fund would provide mortgage funding for low income housing to be constructed by private developers under the following conditions:
The interest rate on all loans will be 2%
The loans will not require amortization and will be interest only
All loans will be for a maximum of $100,000 for a studio unit, $150,000 for a 1 bedroom unit and $200,000 for a 2 bedroom plus unit. All units will require a single code compliant bathroom.
25% of all units will be rented to a family earning less than 30% of median income at the time they move in
75% of all units will be rented to a family earning less than 60% of median income at the time they move in.
Preference will be given to single family home proposals
Preference will be given to projects where tenants will be given the right to purchase after 15 years
Preference will be given to projects in Opportunity Zone-eligible locations
This proposal will be calculated to produce 3,000,000 new low income housing units
A special three person Board will be placed in charge of distributing loans
Action to approve loans will be required within 60 days