The Johnson-Crapo bill would wind down Fannie Mae and Freddie Mac and create a new Federal Mortgage Insurance Corporation (FMIC) to regulate the secondary mortgage market; similar to the way the FDIC regulates banks. The bill would require an assessment of 10 basis points on all outstanding FMIC covered securities. These funds would be directed to affordable housing activities with 75% going to the NHTF.
There is a nationwide shortage of seven million rental homes that are affordable and available to extremely low income households, those with incomes at or below of 30% of the area median.
The primary purpose of the NHTF is to build, preserve, rehabilitate, and operate rental housing affordable to these individuals and families. As drafted, the Johnson-Crapo bill includes and maximizes revenue for the NHTF by providing potential funding of at least $3.5 billion a year. This would be the most significant new investment in rental housing affordable to America’s neediest families in forty years.
Let Senators Johnson and Crapo know that housing advocates greatly appreciate their leadership in supporting the NHTF. Sign on your local, state, or national organization today!