Rep. Alexandria Ocasio-Cortez (D-NY) is calling for the creation of a new federal entity to build “social housing” and then sell those properties agencies and organizations that would manage them in “permanent affordability.”
Ocasio-Cortez, in a New York Times op-ed co-authored with Sen. Tina Smith (D-MN) complained that “it’s becoming nearly impossible for working-class people to buy and keep a roof over their heads.” The lawmakers complained that the government-sponsored enterprises Fannie Mae (OTCQB: FNMA) and Freddie Mac (OTCQB: FMCC) were providing “large, corporate landlords” with Much of their “$150 billion in financial backing to the multifamily rental market every year,” but fail to require tenant protections, and they also complained the low-income housing tax credit used to incentivize affordable housing development “too often ends up in the hands of for-profit developers.”
Their solution is new legislation called the Homes Act, which would create a “federally backed development authority to finance and build homes in big cities and small towns across America. These homes would be built to last by union workers and then turned over to entities that agree to manage them for permanent affordability: public and tribal housing authorities, cooperatives, tenant unions, community land trusts, nonprofits and local governments.”
Under the Homes Act, rents would be capped at 25% of a household’s adjusted annual gross income, while “homes would be set aside for lower-income families in mixed-income buildings and communities.”
The financing of this “social housing construction” would derive from congressional spending and Treasury-backed loans, the lawmakers added, claiming this would make “financing resilient to the volatility of our housing market and the political winds of the annual appropriations process.” The Homes Act would also encourage more investment in public housing and the repeal of the Faircloth Amendment, which they claimed “prevents the construction of new public housing.”
The Homes Act is Ocasio-Cortez’s second housing bill introduced this year. In March, she teamed with Sen. Bernie Sanders (I-VT) on the Green New Deal for Public Housing, which also repealed the Faircloth Amendment while seeking to fund clean energy upgrades in public housing while mandating that any jobs created as part of a housing construction or renovation are unionized.
Photo: nrkbeta / Flickr Creative Commons
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Poor AOC, she really doesn’t understand housing, the market and economics. Where is Congress going to get this money, oh wait, she wants to take more of our hard earned money🤬
Social housing does not work, just look at Russia or the projects in large cities. We are not a communist country and hopefully we never become one!
Agreed! Fraud would destroy any chances as they could never manage a project like this.
So tired of Dems pushing for more govt agencies, more legislation, more restrictions! Let’s put some intelligent folks in office who understand economics and capitalism instead of these socialist loving goof balls who want to take, take, take then give away so we are all even.
I’m a DEM and DO NOT agree with AOC. Not all DEMs want what she’s proposing. Use the PERSON not the PARTY for what you don’t like. Stop labeling.
Seems you didn’t read the article. Russia is our enemy and there’s nothing in Russia like AOC is proposing. There’s nothing communist about what AOC is proposing.
If you do t think that’s communism, you clearly don’t understand anymore than AOC does. That’s exactly what she’s proposing, permanent tenantship without ever owning. No money for that and it would never work long-term. The problem isn’t too little government money in housing, it’s too much and too much regulation.
Amazing the Short memory some of you have, unless you’re 20 years old and are more familiar with the names of DJs and Music festivals then with Definition of Communism, ( Marxism, Maoism, Leninism and Stalinism).
AOC, The street activist and Bartender from the Bronx, the Puerto Rican Separatist , is an ignorant Stupid Closet communist just like KAMALA And OBAMA.
She is part of the “Squad’, the 5 anti American anti Israel Pro Hamas sympathizers and she has NO clue about Business or Housing.
Cares only about being Anti Capitalist and deep down,quietly but Surely Anti American.
There are planes, Trains, Ships and Busses leaving this country EVERYDAY.Or better for her, With her Green new Deal BS, Donkeys.
We need to get out and vote. Otherwise these mindless aristocrates are going to turn this free country into a communist country. It’s really sad what is happening. United we all shall stand.
She & Bernie Sanders are complete idiots! We can’t afford homes, why???? B/C of nuts jobs like her & Bernie, who do not know how to add 2 +2. it does not come out 24!! Why do people keep electing these morons!!
I had a section 8 tenant for years, she had 4 children worked occasionally, would never mow the lawn like she was supposed to, or clean up. I gave her a notice to quit at one point but she could not find another place to rent so I let her stay as I felt sorry for the kids. She ended up drinking herself into a coma at age 36 and I inherited my rental back, in terrible condition, her 2 older kids went to friends and the 2 youngest got farmed out to “family friends” I would never consider any section 8 tenant again. I know others who had the same results with section 8 tenants. People do not care or appreciate what they are given, only what they work for. Government building affordable homes will not work. People need to work and take pride in themselves. Maybe we should offer free daycare thru our public schools so everyone can work.
This silly girl is SO stupid. Having title to a house is only the beginning of home ownership. We tried this around the turn of this century and it ended in a housing crash. Homes were sold to people who couldn’t afford them and didn’t understand the whole concept. And it took down the whole market. Renting and owning are two different concepts!
Another government entity to misuse moneys. The dishonesty and waste in government spending is not the answer.
The govt wants to be the land owners and now the realtors as well. This is another step to the 2030 WEF agenda… you’ll own nothing and be happy…
Let’s research the Faircloth amendment here as well
Why not bring back the old 235 and 236 program, that seemed to work well
Perhaps the money would be better spent teaching the homeless trades involved in home building, such that they can work and provide for themselves, and eventually fulfill the American Dream of home ownership.
Home ownership is a privilege, not a right. If you can not afford to buy a home, the likelihood of being able to maintain a home is slim. It only takes a few people in a neighborhood to fail to maintain the exterior before the downward spiral takes place. Then the government will pass a bill to give these people money to maintain their homes because of the unsafe conditions they live in. More tax money wasted!
Rental housing is for people who can not afford to buy and maintain a home.
Remove many of the regulations and let the free market do its job.
Good little socialists, who do not understand or believe that socialism has never worked love this idea. Pushing a socialist agenda leads to their ultimate goal of communism. This is what is unfolding in our country, in incremental steps so you (who are asleep) do not notice. Those of you who have bleeding hearts & believe everyone deserves their fair share, the playing field should be level for everyone, they’re only here (illegally) to have a better life will surely line up for the next vaccine.
Wait, What? Isn’t this the reason the Federal Housing Authority FHA) was established in the first place? How many duplicate agencies do we need? Well…how much money do you want to siphon off (waste)?
I was also told if you want something you have to work for it. Giving things away is not the answer.
Undeniabke truth: The government has never made anything more affordable.
Sounds like “Cabrini Green” at the National Level. It didn’t work locally, so take it national……yeah, that makes sense.
Here’s a wild thought. First, cut the foreign aid donations. Don’t need them. Second, cut politicians wages. They are too high. Third, use section 8 funds to assist with house payments rather than rents to a 3rd party. Seems like a legitimate strategy but there are always flaws and people in it to screw up a perfectly sound plan.
You can put a person in a home but unless they are willing to be responsible for the maintenance and upkeep they will not be better off in the long run. I’ve seen many real world examples over the years where government built homes for low income residents. Within 10 years they looked shabby. Within 20 they were uninhabitable and many had been abandoned. Some people can’t or won’t be responsible homeowners and no amount of government help will change that.
Bad idea. so no
Those of you who oppose what you call “socialism” (the four letter word, you say) should put your money where your mouth is: reject the tax deduction you get for interest you pay on your mortgage (shame on you for defiling the free market by taking such handouts, you socialist, you!); don’t even think of someday drawing social security payments, comrade (anyway, it won’t be there unless those of you who earn beyond $158K agree to have SS deductions from all you “earn”); don’t dare ask for medicare when your old age arrives; don’t enjoy the highways that allow you to make your capitalist windfalls from us all…put your business acumen to work and let the free market build and maintain these roads, let’s see how that works out; don’t look to our bloated military budget to protect your unearned largesse either–enlist to protect the nation and maybe reduce that budget…
Or do what your ilk always has done for the history of the world: keep raking in the dough, bragging you laced a triple in the gap while actually being born on third base…but even as you destroy your would be character and morality by never, ever even thinking of helping someone not as fortunate as you are, be sure to never stop belly aching about that dreadful boot on your neck!
And let me guess, most of the commentators bemoaning a little help for others are “Christians”, right? Jesus who? you might as well say…
And you are no doubt white, but discount the 20 yard head start that gives you in the 100 yard sprint of life.
Kindness–you greedy parasites–try it for Christ’s sake!