Reviving the American Dream

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For too many Michigan families, keeping a roof over their heads is getting harder and harder every year while the dream of buying a home is falling further out of reach. Red tape and bureaucracy have added nearly $94,000 to the cost of a new home. Skyrocketing costs have led to people waiting longer than ever to buy a home as the age of the average first-time homebuyer has climbed to 40 years old. Meanwhile, private equity corporations and foreign investors treat housing like a stock portfolio, buying up single-family homes and pricing working families out.

It’s clear that the status quo is no longer working, and we need to take serious corrective action to lower costs and rebuild pathways to homeownership. That’s why I’m proud to roll out the second pillar in my Blueprint for a Better America: Reviving the American Dream. This package of housing reform legislation takes critical steps to put more homes on the market and make housing affordable again.

The Time to Heal Act (H.R. 7349)
When someone loses their spouse, the last thing they should have to deal with is being rushed into selling a home while still mourning. Under current law, widows and widowers have a strict two-year deadline following the death of a spouse to receive marital tax deductions when selling their home. If they want to sell after two years, they can only exempt half of the $500,000 exemption married couples can claim. I introduced the Time to Heal Act to remove that arbitrary deadline, giving surviving spouses the time and flexibility they need to decide how and when to sell their home without facing penalties, ultimately putting more single-family homes on the market for new buyers.

The Uplifting First-Time Homebuyers Act (H.R. 3526)
When Congress allowed first-time homebuyers to withdraw from their retirement to make a down payment, housing prices looked very different from today. Prices have risen, but the $10,000 exemption hasn’t changed since it was created nearly 30 years ago. It’s time to increase this exemption, which allows new homebuyers to withdraw funds early from an Individual Retirement Account (IRA) without owing a 10% penalty. This bipartisan bill will allow first-time homebuyers to withdraw up to $50,000 penalty-free, giving mid-Michigan families access to more resources to afford a home in today’s market.

The Housing Supply Framework Act (H.R. 2840)
Many local communities in mid-Michigan want to find ways to bring down housing costs in their community, but they should not have to navigate housing shortages alone. This bill will require the U.S. Department of Housing and Urban Development to develop playbooks for states and local governments on best practices for cutting unnecessary red tape that makes it difficult to build new housing. These frameworks will be useful tools for state and community leaders to identify ways they can get the government out of the way and allow Michigan workers to build more homes.

The Families First Housing Act (H.R. 6962)
Federal lending agencies foreclose on thousands of homes every year. When the federal government puts these homes back on the market, many of them are quickly snatched up by investment corporations before families have a chance to buy them, pricing families out. The Families First Housing Act will establish a 180-day “first look” period for every house sold by Fannie Mae, Freddie Mac, and other federal agencies. During this period, only individuals, families, housing nonprofits, local governments, and community land trusts will have an opportunity to buy the home. 

The bottom line is that these reforms put hardworking Americans first and will make a huge difference when it comes to getting young families one step closer to finally achieving the American Dream. They build on two other bills I introduced last month to expand homeownership, including. the American Dream Act to boost starter-home supply by incentivizing sales to first-time buyers, as well as the Home Affordability for Guard and Reserve Act that expands access to affordable VA home loans.

To follow along as I continue unveiling my Blueprint for a Better America, or to submit your own ideas for Reviving the American Dream, click here.