H.R. 4266

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

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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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