Senator Gallego (D-AZ) released his housing plan, A Path Home: Rebuilding the American Dream and Restoring Housing Affordability, which includes short- and long-term solutions to address America’s housing affordability crisis.

Breaking It Down: Highlights of the 36-page plan include:

  • 8.5 million new and preserved housing units delivered over the next decade if the plan is fully implemented.
  • Enacting LIHTC reforms to protect and build upon the 12 percent LIHTC allocation increase and reduction in the private activity bond-financing threshold. Additional reforms should:
    • Increase new construction allocations;
    • Establish an Extremely Low-Income Basis Boost to incentivize development in underserved areas; and
    • Create an optional 50-year extended affordability period.
  • Leveraging government-backed mortgage companies to boost affordable housing in underserved markets by regularly reevaluating and as necessary, increasing the annual LIHTC investment limits for Fannie Mae and Freddie Mac to unlock more funding.
  • Reviewing and revising loan limits across Federal Housing Administration (FHA) programs to ensure alignment with current construction costs, market conditions, and housing needs.
  • Ensuring that all federal support for housing development – including grants, loans, loan guarantees, bonds, and tax credits – are covered by Davis-Bacon requirements.
  • Streamlining environmental reviews & NEPA compliance for housing by:
    • Creating targeted exemptions for small-scale projects;
    • Expanding HUD’s authority to delegate environmental reviews to local and tribal entities; and
    • Allowing certain housing programs to be treated as “special projects” to accelerate delivery and reduce administrative burdens.
  • Increasing housing choices and landlord participation for voucher holders by:
    • Funding public housing authorities to offer signing bonuses to landlords with units in low-poverty areas;
    • Providing security deposit assistance to tenants;
    • Retaining dedicated landlord liaisons on staff; and
    • Removing duplicative inspection requirements and encouraging reforms to increase the number of neighborhoods where vouchers are used.
  • Restoring permanent housing as the solution to homelessness by ensuring predictable, multiyear