New York progressive Rep. Alexandria Ocasio-Cortez has introduced a bill that would create an ambitious social housing program to build millions of new homes with US government funding.
Ocasio-Cortez has introduced a housing bill in the House of Representatives along with Minnesota Democratic Sen. Tina Smith, who introduced the bill in the Senate, to address a “housing crisis” that has left millions of low-income people unable to find affordable rental housing.
If passed, the bill would provide federal funding for millions of new homes and apartments that must remain affordable under the law.
The effort comes amid growing concern over rising home prices as they emerge as one of the key issues in the upcoming presidential election.
Democratic candidate Kamala Harris has tried to address the issue by promising $25,000 in down payment assistance to first-time homebuyers, but critics say the proposal would drive up home prices.
In their joint bill, Ocasio-Cortez and Smith propose creating an agency within the Department of Housing and Urban Development to acquire property and provide housing with clear tenant protections.
Rents would also be set based on tenants’ incomes and purchase prices would be required to remain permanently affordable.
The homes would be run by non-profit organisations, housing associations and cooperatives.
“For generations, the federal government’s approach to housing policy has focused primarily on encouraging private investment in single-family homeownership and rental housing,” Ocasio-Cortez and Smith wrote in a New York Times op-ed, arguing that the current system means America’s 44 million private renters struggle to pay their rent.
They blame high rents and housing shortages on decades-old “restrictive zoning laws” and high construction costs that mean not enough new homes are being built.
“There’s an alternative: social housing,” they say. “Instead of treating real estate as a commodity, we can guarantee the construction of millions of houses and apartments that must be affordable by law. Some will be rental properties, and others will offer Americans the opportunity to build wealth.”
sign up The Stakes — U.S. Elections Edition
The Guardian guides you through the chaos of a crucial presidential election
Privacy Notice: Our newsletter may contain information about charities, online advertising and externally funded content. For more information, please see our privacy policy. We use Google reCaptcha to protect our website and are subject to the Google privacy policy and terms of use.
After newsletter promotion
The pair claim the model has already been implemented in several European cities, including Vienna, as well as in several projects in Ocasio-Cortez’s home state of New York and Smith’s home state of St. Paul.
Pointing to the Co-op City complex in the Bronx, New York, as a model, they write: “Not only is it one of the world’s largest housing cooperatives, complete with its own schools and power plant, but it is also the nation’s largest naturally occurring retirement community, a testament to its financial and social sustainability.”
They cite studies that estimate their proposals could create or preserve 1.25 million new housing units, including more than 850,000 for the lowest-income households.
“This is an opportunity for the federal government to invest in public housing and provide millions of Americans with a safe, comfortable, and affordable place to call home – one that provides security and dignity,” Ocasio-Cortez and Smith conclude.
