Malliotakis, Suozzi Introduce Bipartisan Legislation to Expand Housing Opportunities

(WASHINGTON, DC) - Congresswoman Nicole Malliotakis (NY-11) and Congressman Tom Suozzi (NY-03) introduced bipartisan legislation that would direct the eventual proceeds from the release of Fannie Mae and Freddie Mac into a housing revolving loan fund aimed at expanding homeownership and rental opportunities for middle-class and working families.

Fannie Mae and Freddie Mac have been under federal conservatorship since the 2008 financial crisis. President Trump has proposed releasing both entities from conservatorship to return them to the private market, allowing shareholders to regain the value of their investments.

The legislation introduced by Representatives Malliotakis and Suozzi would build on this proposal by creating a housing revolving loan fund. Proceeds from the release of Fannie Mae and Freddie Mac would be directed to this fund, which would provide states with resources to issue loans for the construction of new owner-occupied or rental housing, or to rehabilitate existing housing. The goal is to expand homeownership and rental opportunities for middle-class and working families while allowing them to benefit from the value generated by the sale of shares. Estimates of the projected federal proceeds would be $250 billion according to Housing for US. 

“I join Rep. Suozzi in introducing bipartisan legislation that, should Fannie Mae and Freddie Mac be released from conservatorship, would assign the proceeds toward a new housing revolving loan fund to expand homeownership and rental opportunities for working- and middle-class Americans including police officers, firefighters, teachers, carpenters, and tilers who often earn too much to qualify for affordable housing but not enough to afford market rates. This is a chance to deliver critical assistance to hardworking Americans,” said Rep. Malliotakis.

“We have a once-in-a-generation chance to tackle America’s housing crisis while creating good-paying, union jobs for working families,” Rep. Suozzi said. “The housing crisis is crushing the American Dream — young people, carpenters, cops, teachers, nurses, first responders, and middle-class families are being priced out of homeownership. This isn’t a red state or blue state issue — every community is feeling it. And that’s why I’m proud to introduce this legislation with my fellow New Yorker from across the aisle. When we work together, we can get things done.”