119-hr4266

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4266 Introduced in House

    (IH) ]

<DOC>

119th CONGRESS
 1st Session
 H. R. 4266

 To require that any amounts received by the Federal Government as a 
result of the release of the Federal National Mortgage Association and 
 the Federal Home Loan Mortgage Corporation be used for State housing 
 revolving loan funds for middle-class housing supply, and for other 
 purposes.

_______________________________________________________________________

 IN THE HOUSE OF REPRESENTATIVES

 June 30, 2025

 Mr. Suozzi (for himself and Ms. Malliotakis) introduced the following 
 bill; which was referred to the Committee on Financial Services

_______________________________________________________________________

 A BILL

 To require that any amounts received by the Federal Government as a 
result of the release of the Federal National Mortgage Association and 
 the Federal Home Loan Mortgage Corporation be used for State housing 
 revolving loan funds for middle-class housing supply, and for other 
 purposes.

 Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

 This Act may be cited as the ``Housing for US Act''.

SEC. 2. AMOUNTS RECEIVED FROM RELEASE OF FEDERAL NATIONAL MORTGAGE 
 ASSOCIATION AND FEDERAL HOME LOAN MORTGAGE CORPORATION.

    (a) In General.--Notwithstanding any other provision of law, any 
amounts received by the Federal Government as a result of the release 
of the Federal National Mortgage Association and the Federal Home Loan 
Mortgage Corporation shall be transferred to a trust fund to be used 
solely for the purpose described in 

section 3 for a period of 10 years 
after the date of such transfer.

    (b) Deficit Reduction.--On the date that is 10 years after the 
transfer described in subsection

    (a) , the capitalization loans 
described in 

section 3 shall be paid back by the States to the General 
Fund of the Treasury, dedicated for the sole purpose of deficit 
reduction.

SEC. 3. REVOLVING LOAN FUND FOR MIDDLE-CLASS HOUSING SUPPLY.

    (a) 

=== Definitions. ===
-In this section:

    (1) Secretary.--The term ``Secretary'' means the Secretary 
 of Housing and Urban Development.

    (2) State.--The term ``State'' means each of the several 
 States, the District of Colombia, and the territories of the 
 United States.

    (3) Eligible entity.--The term ``eligible entity'' means a 
 local government or non-profit organization that receives a 
 loan from a State loan fund.

    (b) General Authority.--

    (1) Loans to states to establish state loan funds.--
        (A) In general.--The Secretary shall, to the extent 
 that amounts are available under 

section 2 and the 
 extent that States meet the requirements of this Act, 
 enter into agreements with States to make 
 capitalization loans, out of amounts received pursuant 
 to 

section 2, to such States for the establishment of 
 housing revolving loan funds for providing funding 
 assistance to eligible entities to carry out eligible 
 projects under this section to increase the supply of 
 housing available for middle-class Americans, as 
 determined by the Secretary.
        (B) Agreements.--Any agreement entered into under 
 this section shall require States to--
            (i) comply with the requirements of this 
 section; and
            (ii) use accounting, audit, and fiscal 
 procedures conforming to generally accepted 
 accounting standards.
            (C) Establishment of fund.--To be eligible to 
 receive a capitalization loan under this section, a 
 State shall establish a housing revolving loan fund 
 (referred to in this section as a ``State loan fund'') 
 and comply with the other requirements of this section. 
 Each loan to a State under this section shall be 
 deposited in the State loan fund established by the 
 State, except as otherwise provided in this section.
            (D) Extended period.--The loan to a State shall be 
 available to the State for obligation during the fiscal 
 year for which the funds are authorized and during the 
 following fiscal year.
        (E) Allotment formula.--Funds made available to 
 carry out this section shall be allotted to States that 
 have entered into an agreement pursuant to this section 
 based on, as determined by the Secretary--
            (i) the share of total need for an 
 increased supply of affordable housing for 
 families of different sizes between 80 and 165 
 percent of the area median income;
            (ii) inadequate housing supply and 
 substandard housing in the State;
            (iii) costs of producing housing in the 
 State, including increased funds in States with 
 a high cost of producing housing; and
            (iv) any other factors as determined by the 
 Secretary.

    (2) Use of funds.--
        (A) In general.--Except as otherwise authorized by 
 this section, amounts deposited in a State loan fund, 
 including loan repayments and interest earned on such 
 amounts, shall be used only for providing loans or loan 
 guarantees to eligible entities, or as a source of 
 reserve and security for leveraged loans, the proceeds 
 of which are deposited in a State loan fund established 
 under paragraph

    (1) .
        (B) Eligible uses.--Financial assistance provided 
 to an eligible entity under this section may be used by 
 such entity to--
            (i) support homeownership and rental 
 housing affordability, as described in 
 subsection

    (g) , for middle-income persons and 
 families through the new construction or 
 rehabilitation of housing;
            (ii) conduct related activities including 
 real property acquisition, site improvement, 
 conversion, demolition;
            (iii) provide for other expenses, including 
 financing costs and relocation expenses of any 
 displaced persons, families, businesses, or 
 organizations; or
            (iv) provide for the payment of reasonable 
 administrative and planning costs.
            (C) Ineligible uses.--Funds provided under this 
 section may not be used to--
            (i) modernize public housing;
            (ii) provide tenant-based assistance under 
 

section 8

    (o) of the United States Housing Act 
 of 1937 (42 U.S.C. 1437f

    (o) );
            (iii) support ongoing operational costs of 
 rental housing;
            (iv) pay back taxes or fees on properties 
 that are or will be assisted under this 
 section; and
            (v) provide non-Federal matching funds for 
 any other Federal program.
            (D) Sale of bonds.--Funds may also be used by a 
 State as a source of revenue (restricted solely to 
 interest earnings of the applicable State loan fund) or 
 security for payment of the principal and interest on 
 revenue or general obligation bonds issued by the State 
 to provide matching funds under subsection
            (d) , if the 
 proceeds of the sale of the bonds will be deposited in 
 the State loan fund.

    (3) Limitation.--No assistance under this section shall be 
 provided to an eligible entity that does not have the 
 technical, managerial, and financial capability to ensure 
 compliance with the requirements of this section.
            (c) Fund Management.--Each State loan fund under this section shall 
be established, maintained, and credited with repayments and interest. 
The fund corpus shall be available in perpetuity for providing 
financial assistance under this section. To the extent amounts in the 
fund are not required for current obligation or expenditure, such 
amounts shall be invested in interest bearing obligations.
            (d) State Contribution.--Each agreement under subsection

    (b) shall 
require that the State deposit in the State loan fund from cash 
contributions from non-Federal resources an amount equal to at least 20 
percent of the total amount of the loan to be made to the State on or 
before the date on which the loan payment is made to the State.

    (e) Types of Assistance.--Except as otherwise limited by State law, 
the amounts deposited into a State loan fund under this section may be 
used only--

    (1) to make loans to eligible entities for the purposes 
 described in subsection

    (b)

    (2) , on the condition that--
        (A) the interest rate for each loan is less than or 
 equal to the market interest rate, including an 
 interest-free loan;
        (B) principal and interest payments on each loan 
 will commence not later than 18 months after completion 
 of the project for which the loan was made;
            (C) each loan will be fully amortized not later 
 than 30 years after the completion of the project, 
 except that a State may provide an extended term for a 
 loan, if the extended term--
            (i) terminates not later than the date that 
 is 40 years after the date of project 
 completion; and
            (ii) does not exceed the expected design 
 life of the project;
            (D) the recipient of each loan will establish a 
 dedicated source of revenue (or, in the case of a 
 privately owned system, demonstrate that there is 
 adequate security) for the repayment of the loan; and
        (E) the State loan fund will be credited with all 
 payments of principal and interest on each loan;

    (2) to buy or refinance the debt obligation of a 
 municipality or an intermunicipal or interstate agency within 
 the State at an interest rate that is less than or equal to the 
 market interest rate in any case in which a debt obligation is 
 incurred after the date this bill takes effect;

    (3) to guarantee, or purchase insurance for, a local 
 obligation (all of the proceeds of which finance a project 
 eligible for assistance under this section) if the guarantee or 
 purchase would improve credit market access or reduce the 
 interest rate applicable to the obligation;

    (4) as a source of revenue or security for the payment of 
 principal and interest on revenue or general obligation bonds 
 issued by the State if the proceeds of the sale of the bonds 
 will be deposited into the State loan fund; and

    (5) to earn interest on the amounts deposited into the 
 State loan fund.

    (f) Administration of State Loan Funds.--

    (1) Combined financial administration.--A State may (as a 
 convenience and to avoid unnecessary administrative costs) 
 combine, in accordance with State law, the financial 
 administration of a State loan fund established under this 
 section with the financial administration of any other 
 revolving fund established by the State if otherwise not 
 prohibited by the law under which the State loan fund was 
 established and if the Secretary determines that--
        (A) the loans under this section, together with 
 loan repayments and interest, will be separately 
 accounted for and used solely for the purposes 
 specified in subsection

    (b) ; and
        (B) the authority to establish assistance 
 priorities and carry out oversight and related 
 activities (other than financial administration) with 
 respect to assistance remains with the State agency 
 having primary responsibility for administration of the 
 State program, after consultation with other 
 appropriate State agencies (as determined by the 
 State).

    (2) Cost of administering fund.--
        (A) Authorization.--
            (i) In general.--For each fiscal year, a 
 State may use the amount described in clause
            (ii) --
            (I) to cover the reasonable costs 
 of administration of the programs under 
 this section, including the recovery of 
 reasonable costs expended to establish 
 a State loan fund that are incurred 
 after the date this section takes 
 effect; and
            (II) to provide technical 
 assistance to eligible entities within 
 the State.
            (ii) Description of amount.--The amount 
 referred to in clause
            (i) is an amount equal to 
 the sum of--
            (I) the amount of any fees 
 collected by the State for use in 
 accordance with clause
            (i) 
            (I) , 
 regardless of the source; and
            (II) the greatest of--

    (aa) $400,000;

    (bb) \1/5\ percent of the 
 current valuation of the fund; 
 and
            (cc) an amount equal to 4 
 percent of all loan awards to 
 the fund under this section for 
 the fiscal year.
        (B) Additional use of funds.--For fiscal year 2026 
 and each fiscal year thereafter, each State may use up 
 to an additional 10 percent of the funds allotted to 
 the State under this section to administer or provide 
 technical assistance to eligible entities.
            (C) Technical assistance.--An additional 2 percent 
 of the funds annually allotted to each State under this 
 section may be used by the State to provide technical 
 assistance to eligible entities serving 10,000 or fewer 
 persons in the State.

    (3) Guidance and regulations.--The Secretary shall publish 
 guidance and promulgate regulations as may be necessary to 
 carry out the provisions of this section, including--
        (A) provisions to ensure that each State commits 
 and expends funds allotted to the State under this 
 section as efficiently as possible in accordance with 
 this section and applicable State laws;
        (B) guidance to prevent waste, fraud, and abuse; 
 and
            (C) guidance to ensure that the States, and 
 eligible entities, use accounting, audit, and fiscal 
 procedures that conform to generally accepted 
 accounting standards.

    (4) State report.--Each State administering a State loan 
 fund and assistance program under this subsection shall publish 
 and submit to the Secretary a report every 2 years on its 
 activities under this section, including the findings of the 
 most recent audit of the fund and the entire State allotment. 
 The Secretary shall periodically audit all State loan funds 
 established by, and all other amounts allotted to, the States 
 pursuant to this section in accordance with procedures 
 established by the Comptroller General.

    (g) Qualified Housing.--

    (1) Rental housing.--
        (A) In general.--For not less than 15 years after 
 housing is assisted under this section, housing that is 
 for rental shall qualify as affordable housing under 
 this section only if the housing--
            (i) bears rents that--
            (I) are not greater than the 
 existing fair market rent for 
 comparable units in the area, as 
 established by the Secretary; or
            (II) does not exceed 30 percent of 
 165 percent of the median income for 
 the area and is not below 30 percent of 
 80 percent of the median income for the 
 area, as determined by the Secretary, 
 with adjustment for number of bedrooms 
 in the unit, except that the Secretary 
 may establish higher or lower income 
 parameters on the basis of the 
 Secretary's findings that such 
 variations are necessary because of 
 prevailing levels of construction costs 
 or fair market rents, or unusually high 
 or low family incomes;
            (ii) is occupied only by households with 
 income at or lower than the area median income 
 at which the rental price would be 30 percent 
 of the area median income; and
            (iii) if newly constructed, meets the same 
 energy efficiency standards promulgated by the 
 Secretary pursuant to 

section 109 of the 
 Cranston-Gonzalez National Affordable Housing 
 Act (42 U.S.C. 12709).
        (B) Adjustment of qualifying rent.--The Secretary 
 may adjust the qualifying rent established for a 
 project under subparagraph
        (A) , only if the Secretary 
 finds that such adjustment is necessary to support the 
 continued financial viability of the project and only 
 by such amount as the Secretary determines is necessary 
 to maintain continued financial viability of the 
 project.
            (C) Mixed-income project.--Housing that accounts 
 for less than 100 percent of the dwelling units in a 
 project financed under this section shall qualify for 
 loans under this section if such housing meets the 
 criteria of this Act.
            (D) Mixed-use project.--Housing in a project that 
 is designed in part for uses other than residential use 
 shall qualify for loans under this section if such 
 housing meets the criteria of this Act.
        (E) Waiver of qualifying rent.--For the purpose of 
 providing affordable housing, the Secretary may, upon 
 the application of the project owner, waive the 
 applicability of subparagraph
        (A) with respect to a 
 dwelling unit if--
            (i) the rent for the unit is not greater 
 than the existing fair market rent for 
 comparable units in the area, as established by 
 the Secretary; and
            (ii) the Secretary determines that the 
 waiver, together with waivers under this 
 paragraph for other dwelling units in the 
 project, will result in the use of amounts in 
 an effective manner that will improve the 
 provision of affordable housing for such 
 families.

    (2) Homeownership.--Housing that is for homeownership shall 
 qualify as affordable housing under this section only if the 
 housing--
        (A) with respect to housing with 5 or more units, 
 includes--
            (i) 50 percent of such housing units that 
 are affordable for families whose income is 
 between 120 and 165 percent of the median 
 income for the area, as determined by the 
 Secretary; and
            (ii) 20 percent of such housing units that 
 are affordable for families whose income is 
 under 80 percent of the median income for the 
 area, as determined by the Secretary;
        (B) with respect to housing with 1 to 4 units, is 
 affordable for families whose income is between 80 and 
 165 percent of the median income for the area, as 
 determined by the Secretary;
            (C) is subject to resale restrictions, for 5 years, 
 that are established by the eligible entity and 
 determined by the Secretary to be appropriate to--
            (i) allow for subsequent purchase of the 
 property only by persons who meet the 
 qualifications specified under subparagraphs
        (A) and
        (B) , at a price which will--
            (I) provide the owner with a fair 
 return on investment, including any 
 improvements, and
            (II) ensure that the housing will 
 remain affordable to a reasonable range 
 of middle-income homebuyers; or
            (ii) recapture the investment provided 
 under this section in order to assist other 
 persons in accordance with the requirements of 
 this section, except where there are no net 
 proceeds or where the net proceeds are 
 insufficient to repay the full amount of the 
 assistance; and
            (D) if newly constructed, meets the same energy 
 efficiency standards promulgated by the Secretary 
 pursuant to 

section 109 of the Cranston-Gonzalez 
 National Affordable Housing Act (42 U.S.C. 12709).

    (h) Labor Requirements.--An eligible entity that receives a loan 
under this section must comply with the following requirements with 
respect to urban areas with an average greater than 2,000 housing units 
per adjacent census block:

    (1) Apprenticeship requirements.--The requirements 
 described in this paragraph with respect to the construction of 
 any housing unit are as follows:
        (A) Labor hours.--Eligible entities shall ensure 
 that, with respect to the construction of any housing 
 unit, not less than 15 percent of the total labor hours 
 of the construction, alteration, or rehabilitation work 
 (including such work performed by any contractor or 
 subcontractor) with respect to such unit shall, subject 
 to subparagraph
        (B) , be performed by qualified 
 apprentices.
        (B) Apprentice to journeyworker ratio.--The 
 requirement under subparagraph
        (A) shall be subject to 
 any applicable requirements for apprentice-to-
 journeyworker ratios of the Department of Labor or the 
 applicable State apprenticeship agency.
            (C) Participation.--Each eligible entity, 
 contractor, or subcontractor who employs 4 or more 
 individuals to perform construction, alteration, or 
 repair work with respect to the construction of a 
 housing unit shall employ 1 or more qualified 
 apprentices to perform such work.
            (D) Exception.--
            (i) In general.--An eligible entity shall 
 not be treated as failing to satisfy the 
 requirements of this paragraph if such eligible 
 entity--
            (I) satisfies the requirements 
 described in clause
            (ii) ; or
            (II) in the case of any failure by 
 the eligible entity to satisfy the 
 requirement under subparagraphs
        (A) and
            (C) with respect to the construction, 
 alteration, or rehabilitation work on 
 any housing unit to which subclause
            (I) does not apply, makes payment to the 
 Secretary of a penalty in an amount 
 equal to the product of--

    (aa) $50; multiplied by

    (bb) the total labor hours 
 for which the requirement 
 described in such subparagraph 
 was not satisfied with respect 
 to the construction, 
 alteration, or repair work on 
 such housing unit.
            (ii) Good faith effort.--For purposes of 
 clause
            (i) , an eligible entity shall be deemed 
 to have satisfied the requirements under this 
 paragraph with respect to a housing unit if 
 such eligible entity has requested qualified 
 apprentices from a registered apprenticeship 
 program, and--
            (I) such request has been denied, 
 provided that such denial is not the 
 result of a refusal by the eligible 
 entity or any contractors or 
 subcontractors engaged in the 
 performance of construction, 
 alteration, or repair work with respect 
 to such housing unit to comply with the 
 established standards and requirements 
 of the registered apprenticeship 
 program; or
            (II) the registered apprenticeship 
 program fails to respond to such 
 request within 5 business days after 
 the date on which such registered 
 apprenticeship program received such 
 request.
        (E) === Definitions. ===
-For purposes of this paragraph--
            (i) Labor hours.--The term ``labor 
 hours''--
            (I) means the total number of hours 
 devoted to the performance of 
 construction, alteration, or repair 
 work by any individual employed by the 
 eligible entity or by any contractor or 
 subcontractor; and
            (II) excludes any hours worked by--

    (aa) foremen;

    (bb) superintendents;
            (cc) owners; or
            (dd) persons employed in a 
 bona fide executive, 
 administrative, or professional 
 capacity (within the meaning of 
 those terms in part 541 of 
 title 29, Code of Federal 
 Regulations).
            (ii) Qualified apprentice.--The term 
 ``qualified apprentice'' means an individual 
 who is employed by the eligible entity or by 
 any contractor or subcontractor and who is 
 participating in a registered apprenticeship 
 program.

    (2) Prevailing wage requirements.--
        (A) Davis-bacon.--All laborers and mechanics 
 employed by contractors or subcontractors in the 
 performance of construction, alteration, or repair work 
 on a project assisted in whole or in part by funding 
 made available under this section shall be paid wages 
 at rates not less than those prevailing on similar 
 projects in the locality, as determined by the 
 Secretary of Labor in accordance with subchapter IV of 
 chapter 31 of title 40, United States Code (commonly 
 referred to as the ``Davis-Bacon Act'').
        (B) Authority.--With respect to the labor standards 
 specified in subparagraph
        (A) , the Secretary of Labor 
 shall have the authority and functions set forth in 
 Reorganization Plan No. 14 of 1950 (64 Stat. 1267; 5 
 U.S.C. App.) and 

section 3145 of title 40, United 
 States Code.

    (3) I-9 compliance.--The eligible entity or any contractor 
 or subcontractor in the construction of any housing unit shall 
 complete documentation to establish that any laborers or 
 mechanics employed by the eligible entity or any contractor or 
 subcontractor is eligible to work in the United States, in 
 accordance with part VIII of subchapter II of chapter 12 of 
 title 8, United States Code.

    (4) Project labor agreements.--
        (A) In general.--A contractor for a project carried 
 out under this section that is a construction project 
 shall be a party to a covered project labor agreement.
        (B) === Definitions. ===
-In this paragraph:
            (i) Covered project labor agreement.--The 
 term ``covered project labor agreement'' means 
 a project labor agreement that--
            (I) binds all contractors and 
 subcontractors on the construction 
 project through the inclusion of 
 appropriate specifications in all 
 relevant solicitation provisions and 
 contract documents;
            (II) allows all contractors and 
 subcontractors to compete for contracts 
 and subcontracts without regard to 
 whether they are otherwise a party to a 
 collective bargaining agreement;
            (III) contains guarantees against 
 strikes, lockouts, and other similar 
 job disruptions;
            (IV) sets forth effective, prompt, 
 and mutually binding procedures for 
 resolving labor disputes arising during 
 the covered project labor agreement; 
 and
            (V) provides other mechanisms for 
 labor-management cooperation on matters 
 of mutual interest and concern, 
 including productivity, quality of 
 work, safety, and health.
            (ii) Project labor agreement.--The term 
 ``project labor agreement'' means a pre-hire 
 collective bargaining agreement with one or 
 more labor organizations that establishes the 
 terms and conditions of employment for a 
 specific construction project and is described 
 in 

section 8

    (f) of the National Labor Relations 
 Act (29 U.S.C. 158

    (f) ).

    (5) Responsible contractor 

=== policy ===
-Any contractor or 
 subcontractor for a project carried out with funds provided 
 under this section shall--
        (A) follow all applicable Federal, State, and local 
 laws, including such laws related to required licenses, 
 registrations, certifications, insurance, and other 
 credentials;
        (B) within the previous 10 years, not have been 
 convicted of any crime relating to the contracting 
 business of such contractor or subcontractor; and
            (C) within the previous 8 years, not have--
            (i) been debarred or suspended by a 
 Federal, State, or local government agency or 
 authority;
            (ii) defaulted on a project;
            (iii) had any type of business, contracting 
 or trade license, registration, or other 
 certification revoked or suspended; and
            (iv) been found in violation of any law 
 applicable to the business of the contractor or 
 subcontractor, including licensing, tax, wage 
 and hour, prevailing wage, labor, employment, 
 environmental, safety laws, or others, where 
 the result of such violation was the payment of 
 a fine, back pay damages or any other type of 
 penalty in the amount of $5,000 or more.

    (6) Regulations and guidance.--The Secretary shall issue 
 such regulations or other guidance as the Secretary determines 
 necessary to carry out the purposes of this subsection, 
 including regulations or other guidance which provides for 
 requirements for recordkeeping or information reporting for 
 purposes of administering the requirements of this subsection.
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