Bill Overview
Title: GROW Affordable Housing Act
Description: or the GROW Affordable Housing Act This bill increases the amount of funds the Federal Home Loan Mortgage Corporation (Freddie Mac) and the Federal National Mortgage Association (Fannie Mae) must allocate each year to the Housing Trust Fund and the Capital Magnet Fund, both of which support affordable housing and are administered by the Department of Housing and Urban Development.
Sponsors: Rep. Beatty, Joyce [D-OH-3]
Target Audience
Population: Individuals who benefit from affordable housing programs worldwide
Estimated Size: 15000000
- The bill impacts the affordable housing sector by increasing funding to support the construction and maintenance of affordable housing units.
- Affordable housing projects benefit low to moderate-income individuals who cannot afford market rate housing.
- More funds for affordable housing can alleviate some of the housing insecurity experienced by vulnerable populations.
- The legislation impacts not just those directly benefiting from affordable housing units but can also indirectly impact local economies and communities by potentially reducing homelessness and increasing local job opportunities in construction and management.
Reasoning
- This policy is targeted towards low to moderate-income Americans who struggle with housing costs. While the budget set for the first year is limited, the cumulative investment over ten years is significant, suggesting potential for considerable impact over time.
- The simulated interviews include individuals directly benefiting from affordable housing, those not immediately impacted, as well as stakeholders who might see indirect effects from the policy (like construction workers or local business owners).
- We sought to represent various demographics, including single parents, young adults just entering the workforce, retirees, and those currently experiencing homelessness or housing insecurity.
- The policy is likely to have a high positive impact on individuals with significant housing needs, while potentially having lesser effects or taking longer to impact those who are not in immediate crisis but still face housing affordability challenges.
- Cantril Wellbeing Scores allow us to project potential changes in subjective well-being based on the perceived impact of stable housing and economic improvement.
Simulated Interviews
Teacher (Detroit, MI)
Age: 28 | Gender: female
Wellbeing Before Policy: 4
Duration of Impact: 10.0 years
Commonness: 15/20
Statement of Opinion:
- I struggle every month to pay rent and have been worried about possible eviction.
- I believe more affordable housing would make life much easier for me and my child.
- Having access to affordable housing will allow me to save for emergencies and improve my overall quality of life.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 4 |
| Year 2 | 6 | 4 |
| Year 3 | 7 | 4 |
| Year 5 | 8 | 4 |
| Year 10 | 9 | 4 |
| Year 20 | 8 | 3 |
Construction worker (Boston, MA)
Age: 45 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 12/20
Statement of Opinion:
- This bill could mean more jobs in the construction sector, which would directly benefit me.
- Affordable housing is greatly needed in many places, including here.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 8 | 6 |
| Year 10 | 7 | 5 |
| Year 20 | 6 | 5 |
Retired (Phoenix, AZ)
Age: 60 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 18/20
Statement of Opinion:
- I worry about rising rents eating into my retirement savings.
- Affordable housing might help me stretch my dollars further.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 5 | 4 |
Freelancer (Los Angeles, CA)
Age: 34 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 7.0 years
Commonness: 10/20
Statement of Opinion:
- The cost of living here is insanely high.
- If affordable housing becomes more accessible, it could help me stabilize financially.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 8 | 5 |
| Year 10 | 7 | 5 |
| Year 20 | 6 | 5 |
Healthcare Worker (Austin, TX)
Age: 38 | Gender: female
Wellbeing Before Policy: 3
Duration of Impact: 10.0 years
Commonness: 14/20
Statement of Opinion:
- I'm constantly stressed about losing our home.
- This policy could prevent families like mine from becoming homeless.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 3 |
| Year 2 | 6 | 3 |
| Year 3 | 7 | 2 |
| Year 5 | 7 | 2 |
| Year 10 | 8 | 2 |
| Year 20 | 7 | 1 |
Student (New York, NY)
Age: 19 | Gender: other
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 9/20
Statement of Opinion:
- Affordable housing could enable me to live independently during my studies.
- I think the added support would mean less worry about finding a place to live after graduation.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 9 | 7 |
| Year 10 | 8 | 6 |
| Year 20 | 7 | 5 |
Small Business Owner (Seattle, WA)
Age: 55 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 3.0 years
Commonness: 17/20
Statement of Opinion:
- More affordable housing might reduce homelessness in my community.
- This policy could boost local commerce by helping more people settle and spend in the area.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 6 |
Social Worker (Chicago, IL)
Age: 47 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 13/20
Statement of Opinion:
- This act could be a game-changer for the clients I work with.
- Better access to affordable housing means more stability for families in need.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 5 |
| Year 3 | 9 | 5 |
| Year 5 | 9 | 5 |
| Year 10 | 8 | 5 |
| Year 20 | 7 | 5 |
Software Developer (San Jose, CA)
Age: 25 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 0.0 years
Commonness: 20/20
Statement of Opinion:
- Although I'm currently okay, I realize my situation is not the norm.
- Supporting affordable housing is beneficial for society and might help if I need such support in the future.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 7 |
| Year 20 | 7 | 7 |
Administrative Assistant (Miami, FL)
Age: 40 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 8.0 years
Commonness: 11/20
Statement of Opinion:
- Affordable housing would allow me more independence and stability.
- I feel this policy can have a significant impact on people in my position.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 8 | 5 |
| Year 10 | 8 | 4 |
| Year 20 | 7 | 4 |
Cost Estimates
Year 1: $300000000 (Low: $250000000, High: $350000000)
Year 2: $320000000 (Low: $270000000, High: $370000000)
Year 3: $340000000 (Low: $290000000, High: $390000000)
Year 5: $380000000 (Low: $330000000, High: $430000000)
Year 10: $450000000 (Low: $400000000, High: $500000000)
Year 100: $1000000000 (Low: $900000000, High: $1100000000)
Key Considerations
- Securing compliance from Freddie Mac and Fannie Mae regarding increased allocations is crucial.
- Ensuring the effectiveness and efficiency of fund disbursements by HUD is essential to maximize housing outcomes.
- The inflow of funds must align with capacity expansion in construction to avoid inflationary pressures in the housing sector.