The transformative housing package addresses rising rental costs and downpayment fees, private equity’s domination of Atlanta’s housing market, and the overall lack of available housing units

This week, Senator Reverend Warnock introduced the Downpayment Toward Equity Act, the Rent Relief Act, and the Stop Predatory Investing Act

Senator Reverend Warnock also introduced the American Housing and Economic Mobility Act, legislation that would build nearly three million new housing units

During a Wednesday Senate Banking Hearing, Senator Reverend Warnock highlighted his newly introduced housing legislation and how Georgians and Americans would benefit from the legislative package

Senator Reverend Warnock, a longtime advocate of affordable housing, has tirelessly fought to broaden the path to homeownership for hardworking Americans

Senator Reverend Warnock during the hearing: “These are important bills that address the affordability issue and the accessibility issue around housing”

Watch Senator Reverend Warnock at Wednesday’s Senate Banking Committee hearing HERE

Washington, D.C. – This week, U.S. Senator Reverend Raphael Warnock (D-GA) introduced a comprehensive legislative package of housing bills to address the ongoing housing affordability and availability crisis in the United States.

The Downpayment Toward Equity Act, the Rent Relief Act, the Stop Predatory Investing Act, and the American Housing and Economic Mobility Act, which Senator Warnock co-led with Senator Elizabeth Warren (D-MA), are a direct response to what Senator Warnock has heard from constituents about their inability to afford a home, and a solution to the housing crisis that millions more Americans are facing across the country.

“We have a housing affordability and availability crisis in this country and I’m especially concerned about young Americans and their ability to pay rent or buy their first home,” said Senator Reverend Warnock during a Senate Banking Committee hearing. “Last year, we actually saw the largest increase in rental costs in a decade, while the share of first-time homebuyers reached an all-time low. Tough pickings whether you’re a renter, or looking to buy. Georgia has the lowest homeownership rate in the entire Southeast.” 

The bills introduced in the package address each of the largest hurdles for most young people trying to buy their first home.

The Rent Relief Act would provide much needed relief to low- and middle-class Americans by subsidizing a percentage of their rents that exceed cost burden thresholds (more than 30% of their income). It would address the rising rental costs seen around the country, allowing people to save more income that could be put toward realizing the dream of homeownership.

The Downpayment Toward Equity Act would provide funds toward downpayment and other financial assistance for first-generation homebuyers to purchase their first home, helping alleviate what is considered the chief obstacle for young people in trying to buy their first home. 

“Ms. Willis, what are the consequences of high rental costs and lack of affordable housing on upward mobility on the broader economy?” Senator Warnock asked Renee M. Willis, who was an expert witness for Wednesday’s Banking Committee hearing.

“I think on an individual level when people with low incomes can’t afford housing, they’re forced to make impossible trade-offs. So, we’re talking about trade-offs between paying rent and buying groceries, or medications, or investing in their children’s education,” responded Renee M. Willis, Interim President & CEO of National Low Income Housing Coalition. “But more broadly, I’d say that researchers have found housing constraints have lowered GDP growth.”

“For first-time home buyers, what do they cite most often as the biggest barriers?” Senator Warnock asked.

“Two words. Downpayment costs,” responded Willis.

The Stop Predatory Investing Act, previously led by another champion of housing, Senator Sherrod Brown (D-OH), would remove tax advantages enjoyed by private equity investors to disincentivize ownership of more than 50 single-family rental properties.

These bills together, coupled with Senators Warnock and Warren’s American Housing and Economic Mobility Act, which would invest in building nearly three million new housing units, would address some of the most longstanding issues in the American housing market today.

“These are important bills that address the affordability issue and the accessibility issue around housing,” said Senator Warnock at the hearing.

During the hearing, Senator Warnock also questioned Dr. Edward Glaeser, a Professor of Economics at Harvard University, about the impact of the housing crisis on the American GDP.

“Are you concerned about what you are seeing in the economic data about young Americans and homeownership?” Senator Warnock asked.

“Senator, I certainly am,” said Dr. Edward Glaeser. “[One of my concerns] is a transfer of housing wealth, from the young to the old.

“Massive transfers of wealth, and the inability to pass wealth from one generation to the next, it’s moving in the wrong direction, which has implications for all of us regardless of our generation,” continued Senator Warnock.

Since coming to the Senate, Senator Warnock has worked to increase affordable housing and illuminate a path to homeownership, a cornerstone of the American Dream. As one of twelve brothers and sisters growing up in public housing in Savannah, Senator Warnock deeply understands the importance of having a place to call home and homeownership. In the past few years, Senator Warnock voted for government funding legislation that increased America’s housing supply, strengthened housing affordability, and addressed the homelessness crisis, including by: increasing the supply of affordable housing nationwide with funding to build 10,000 new rental and homebuyer units; extending funding for the Yes In My Backyard (“YIMBY”) grant program to support efforts to increase our nation’s housing supply and lower housing costs through state and local zoning changes; and delivering $275 million in new funding for Homeless Assistance Grants to help address homelessness in communities across the country and providing new resources to better connect people experiencing homelessness with health care services. Senator Warnock has also secured nearly $80 million in housing investments to provide affordable housing options for Georgians at all income levels and repair hazardous housing conditions in low-income housing units. 

“The predatory practices of institutional investors who buy out single-family homes is a rapidly developing issue in affordable housing policy, and one that must be addressed head-on to protect the rights of tenants and help preserve the nation’s supply of affordable housing,” said NLIHC Interim President and CEO Renee Willis. “I applaud Senator Warnock for his leadership in introducing the ‘Stop Predatory Investing Act’, which will help ensure investors do not buy up available properties only to raise rents and displace tenants.” 

In addition to Senator Warnock, the Downpayment Toward Equity Act is cosponsored by Senators Alex Padilla (D-CA), Tim Kaine (D-VA), Mark Warner (D-VA), Chris Van Hollen (D-MD), and Cory Booker (D-NJ), the American Housing and Economic Mobility Act is cosponsored by Senators Elizabeth Warren (D-MA), Ed Markey (D-MA), Mazie Hirono (D-HI), Peter Welch (D-VT), Richard Blumenthal (D-CT), Bernie Sanders (I-VT), Chris Van Hollen (D-MD), and Andy Kim (D-NJ), the Stop Predatory Investing Act is co-led by Senators Tina Smith (D-MN), Ron Wyden (D-OR), and Tammy Baldwin (D-WI) and cosponsored by Elizabeth Warren (D-MA), Ruben Gallego (D-AZ), Jack Reed (D-RI), Bernie Sanders (I-VT), Amy Klobuchar (D-MN), Peter Welch (D-VT), Richard Blumenthal (D-CT), and Cory Booker (D-NJ).

Watch video of Senator Reverend Warnock’s questioning at Wednesday’s Senate Banking Committee hearing HERE.

Bill text for the Downpayment Toward Equity Act can be found HERE.

Bill text for the Stop Predatory Investing Act can be found HERE.

Bill text for the Rent Relief Act can be found HERE.

Bill text for the American Housing Economic Mobility Act can be found HERE.

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