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 4.3% 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.
Proposed Housing Act
Be it enacted by the Senate and House of Representatives of the United States of America in Congress Assembled
1) Qualifying Provisions
2)Opportunity Zones 3) Low Income Housing Tax Credits
5)Government Loans
1- Qualifying Provisions:
Qualifying Provisions for any project under this Act must build housing that will adhere to the standard of 60% median income for 15 years. Any project which goes out of compliance with this provision will be denied benefits under this Act. Projects which come out of compliance will lose Opportunity Zone status, will lose Low Income Housing Tax Credits, and will have their Government board loans come immediately due.
2- Opportunity Zones:
For any project meeting the Qualifying Provisions as above will automatically qualify for all the provisions provided for projects built in Opportunity Zones.
3- Low Income Housing Tax Credits:
Any project qualifying under this Act will be eligible for 4% tax credits as per the provisions of legislation providing for 4% credits.
4- Any project qualifying under this act will be permitted to depreciate the property in the first year after the property is placed into service.
5- Government Loans:
5A- The Federal government of the United States shall establish and fund a body called the “Government Loans for Low Income Housing Board”. This Board shall have one member appointed by the President of the United States, one member appointed by the House of Representatives, and one member appointed by 51% of the US Senate.
5B- This Board will be empowered to make up to $45 billion in loans that qualify as per the Qualifying Provisions of this Act.
5C- The amount of these loans shall be limited to a $100,000 for a studio housing unit, $150,000 for a one bedroom housing unit, and $200,000 for a two bedroom or higher housing unit.
5D- The interest rate on these loans shall be the same as the interest rate on 10 year US Government paper.
5E- Preference will be given to builders of single family houses.
5F- Preference will be given to developments which make provisions to sell the units to residents after 15 years.
5G- These loans shall permit second position financing after the Government loan.