"Because we believe that housing is a human right, like food or healthcare, we believe that more Americans deserve the option of social housing," the pair wrote in the Times. "That's why we're introducing the Homes Act, a plan to establish a new, federally backed development authority to finance and build homes in big cities and small towns across America. These homes would be built to last by union workers and then turned over to entities that agree to manage them for permanent affordability: public and tribal housing authorities, cooperatives, tenant unions, community land trusts, nonprofits, and local governments."
"Our housing development authority wouldn't be focused on maximizing profit or returns to shareholders," the congresswomen continued. "Rent would be capped at 25% of a household's adjusted annual gross income. Homes would be set aside for lower-income families in mixed-income buildings and communities. And every home would be built to modern, efficient standards, which would cut residents' utility costs. Renters wouldn't have to worry about the prospect of a big corporation buying up the building and evicting everyone. Some could even come together to purchase their buildings outright."
In addition to establishing the new authority under the Department of Housing and Urban Development, the bill would repeal the Faircloth Amendment, which prevents the use of federal money for building new public homes. Under the new plan, construction would be funded by congressional spending and Treasury-backed loans.
"In New York, the average worker would need to clock in 104 hours a week to afford a one-bedroom apartment," Ocasio-Cortez said in a statement. "This country is staring down a full-blown housing crisis. A crisis where affordable housing is slipping out of reach."
"This bill would create more than 500,000 jobs and create 1.25 million affordable housing units," she noted, declaring that "everyone deserves a place to call home."
It's not just New York City where lower-wage people are struggling to keep a roof over their heads. Smith pointed out that "more than 90% of workers cannot afford a modest one-bedroom apartment. Americans across the country are bidding for homes against the wealthiest financial firms and they're losing."
"We have a severe housing crisis," she stressed. "The private market cannot meet this moment on its own. The Homes Act meets peoples' needs through social housing."
As Jacobin's Samuel Stein wrote Wednesday:
The housing system sketched out in the Homes Act looks nothing like what we are used to in the United States. Though we have an important social housing legacy, we have never normalized decommodification as the cornerstone of our housing system.
Introducing legislation like the Homes Act does not accomplish that goal in and of itself, but it offers us a concrete depiction of what that transition could look like. It also highlights the severe disjuncture between what our housing and urban planning system does right now—promote private profits in real estate while minimizing the public provision of housing—and what we need it to do.
The goal of legislation like this is not to pass it immediately, since no sober person would expect the current U.S. Congress to line up in support. Nor is the goal to supplant the messy work of organizing with the schematic and technical language of legislation. Instead, the point is to inspire organizing: to show that the status quo is not the only way our housing could operate, to give tenant organizations a concrete and affirmative vision to build toward, and to offer socialist candidates for office a platform to run on.
The bill to create a social housing authority—introduced less than two months out from the U.S. general election—is backed by the Center for Popular Democracy (CPD) and its affiliates from across the country.
"Working families are being forced to make sacrifices in order to pay the skyrocketing cost of keeping a roof over their heads, while corporate landlords and Wall Street executives are getting even richer," said CPD co-executive directors Analilia Mejia and DaMareo Cooper. "This legislation provides a clear alternative to for-profit housing. It creates a framework to make community-owned, permanently affordable green social housing a reality."
Advocates from both sponsors' states also spoke out in favor of the bill.
"In Greater Minnesota, counties and towns don't have staff to build affordable housing projects, financing is another huge issue. We don’t have as many philanthropic organizations or financial institutions as urban areas," explained Noah Hobbs, policy director at One Roof Community Housing in Duluth. "This bill is the first real investment we've had in years. We're incredibly proud to endorse this legislation."
Aisha Hernandez, secretary of the Coalition to Save Affordable Housing at Co-op City in the Bronx, said that "cooperative housing gave me the ability to co-own my home. A few years ago, my neighbors and I came together to ensure our housing stays affordable, that our management is working in the interest of homeowners and prevent any corporate takeover of Co-op City."
"We are co-owners, not at the whims of corporate landlords," Hernandez added. "I want my fellow Americans to have the same access to housing that co-op has afforded me. This bill has the ability to do that. So let's get it done."
