A Bold Step Towards Housing Equity: Smith and Ocasio-Cortez Unveil the Homes Act

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In a significant move to address the escalating housing crisis in America, Senator Tina Smith (D-Minn.) and Congresswoman Alexandria Ocasio-Cortez (NY-14) have introduced the Homes Act, a groundbreaking piece of legislation aimed at creating and preserving up to 1.3 million homes across the nation. This ambitious initiative seeks to provide quality, affordable housing for families in small towns, urban centers, and rural communities alike.

Senator Smith, Chair of the Senate Housing, Transportation, and Community Development Subcommittee, emphasized the critical need for safe and affordable housing, stating, “Without a safe, decent, and affordable place to live, nothing in your life works. Our proposal would serve renters and homebuyers alike, offering millions of Americans the stability and comfort that come with a place to call home. Housing is a human right—this bill meets the urgency of the moment.”

Rep. Ocasio-Cortez echoed this sentiment, condemning the systemic issues driving the housing crisis, which include soaring rents, evictions, and homelessness. “The Homes Act is our bold response to this crisis, investing $300 billion over the next decade to ensure everyone can access an affordable home,” she remarked. This investment aims to counteract the corporate takeover of housing, where families find themselves competing against deep-pocketed investors and hedge funds.

The Homes Act presents a transformative public option for housing that addresses the pressing needs of communities often overlooked by the private market. By establishing a national Housing Development Authority, the legislation seeks to create and maintain a stock of sustainable, permanently affordable homes, including both single- and multi-family units. It sets robust tenant protections and ensures that a significant portion of these units remains affordable to low- and extremely-low-income households.

As communities grapple with the stark reality of a housing landscape increasingly dominated by corporate interests, this legislation offers hope. The Homes Act is designed to generate over 400,000 good-paying jobs annually, including 150,000 construction jobs, thereby providing not just housing but economic opportunities for communities across the country.

Moreover, the bill directly addresses the barriers that have historically marginalized low-income renters and potential homeowners. By capping rents at 25% of a household’s adjusted gross income and allowing residents to purchase homes under shared equity models, the Homes Act empowers families to secure their housing futures. The proposed legislation also mandates that tenant cooperatives have opportunities to acquire their buildings before they fall into the hands of profit-driven developers.

In a landscape where more than 90% of U.S. counties have minimum wage workers unable to afford a modest one-bedroom apartment, the urgency for such comprehensive reform cannot be overstated. With more than half of America’s 44 million renters spending over 30% of their income on rent, the Homes Act aims to restore dignity and the promise of the American Dream for all, not just a privileged few.

The legislation has garnered endorsements from over 100 organizations, including the NAACP, Center for American Progress, and the National Housing Law Project, highlighting a widespread consensus on the need for action. As Senator Jeff Merkley (D-OR) stated, “Relying on the private market won’t solve our housing crisis—especially as hedge funds gobble up entire blocks in our neighborhoods.”

In a moment when the American housing landscape appears increasingly bleak, the Homes Act emerges as a beacon of hope. By investing in sustainable solutions and prioritizing the needs of communities, this legislation aims to reshape the future of housing in America.