Warren introduces new bill targeting the housing crisis

The legislation would invest hundreds of billions of dollars into creating new housing and helping low-income and middle-class families, Warren said.

Sen. Elizabeth Warren announced new legislation Monday that would invest hundreds of billions of dollars into combating the housing crisis.

The American Housing and Economic Mobility Act would hike estate taxes to fund the construction of nearly 3 million new housing units and to bring rents down by 10% for low-income and middle-class families, according to an independent analysis cited by the lawmakers backing the bill.

“The only way to dig our country out of this housing crisis is to build more housing so everyone has a place to call home,” Warren said in a statement. “My bill will make bold investments in our country’s housing and encourage local innovation to lower housing costs even more — and it’s all paid for by getting America’s wealthiest families to chip in.”

Warren teamed up with Sen. Raphael Warnock of Georgia and Rep. Emanuel Cleaver of Missouri to sponsor the legislation. She introduced it during an event Monday at affordable housing developer Urban Edge in Roxbury. More than 30 Massachusetts mayors, including Mayor Michelle Wu of Boston, signed a letter of support. A number of other congresspeople, including Sen. Ed Markey and Rep. Ayanna Pressley of Massachusetts, are on board.

The bill would use almost $550 billion to support federal housing and housing maintenance programs. By far the largest investment would be $445 billion into the housing trust fund, which distributes grants aimed at creating more housing and preserving existing homes.

The lawmakers are hoping to incentivize local governments to “eliminate unnecessary land use restrictions” that can seriously increase construction costs. Through a new grant program, $10 billion would be allocated for infrastructure spending in communities that ease zoning rules that restrict housing development.

The legislation would also provide grants to first-time and first-generation homebuyers to help them cover their down payments. Massachusetts already has a similar program, dubbed MassDREAMS, in place.

About $25 billion would be put into a fund that would be “leveraged 10:1 with private capital” to build hundreds of thousands of new homes. Another $70 billion would be invested in the Public Housing Capital Fund.

Parts of the bill would strengthen anti-discrimination laws, banning housing discrimination based on things like gender identity, sexual orientation, and source of income.

“The affordable housing crisis in Massachusetts and across the country has burdened families and communities for far too long,” Markey said in a statement. “[The bill] makes bold investments to equitably develop new affordable housing, limits private equity in the housing market, provides grants to first-time and first generation homebuyers, and cracks down on housing discrimination.”

Housing affordability is one of the top concerns among Massachusetts residents and is a frequent talking point of elected officials like Gov. Maura Healey. A recent analysis found that the Bay State has the second-highest cost of living in the country, after only Hawaii.