Senate bill would create federal grant pool for affordable housing investments

WASHINGTON — Federal legislation introduced in the U.S. Senate would create a multi-billion dollar grant pool for local communities to bolster their affordable housing options. 

U.S. Sen. Gary Peters, D-Bloomfield Township, introduced The Restoring Communities Left Behind Act in Congress Tuesday, July 13.

The bill would create a $5 billion program at the U.S. Department of Housing and Urban Development for communities to use for restoring properties with the aim of turning them into affordable housing developments, providing skills training in low-income areas and making other neighborhood improvements. 

Similar legislation was introduced in the House by Reps. Marcy Kaptur, D-Ohio, and Rashida Tlaib, D-Detroit, earlier this year. Rep. Fred Upton, R-St. Joseph, was among the resolution's co-sponsors.

Communities that would qualify for the grants would have to display several housing factors, including large amounts of vacant properties due to foreclosure, low home ownership rates, high poverty rates, among others. 

In a news release, Peters said the coronavirus pandemic exposed inequities in housing and elsewhere in less-advantaged communities. According to the Consumer Financial Protection Bureau, 11 million homeowners and renters were behind on their monthly payments last December. 

“This pandemic has reinforced the critical need for robust federal investment in communities that have previously been left behind to help them emerge even stronger,” he said. 

“This common sense bill will provide a significant boost to the neighborhoods and areas across our state that need it most while supporting programs that provide skills training, investing in local development projects and improving access to affordable housing.”

Access to stable housing in youth is believed to be a factor in future life outcomes — a 2003 study published in the National Library of Medicine found residential instability was linked with elevated risks of depression later in life. 

The bill also sets aside grants for communities outside major metropolitan areas.

Multiple national advocacy organizations have announced support for the legislation. They include Habitat for Humanity, National Community Action Foundation and others.