Congress expands affordable housing construction—but caps it at 22% of GSE capital
H.R. 9461 — Working Families Home Construction Act of 2026 · Filed by Scott Fitzgerald (R-WI) · Introduced Jun 25, 2026 · Referred to committee
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What it does
This bill allows Fannie Mae and Freddie Mac (the government-backed mortgage giants) to purchase and securitize construction loans for affordable housing projects. Builders can borrow up to $100,000 per unit (capped at $2.4 million per project) to construct homes for families earning 90–130% of area median income, with the builder required to put down at least 10% of project costs. Fannie and Freddie would dedicate 22% of their available capital to these loans, and buyers must live in the home for at least one year.
Why we flagged it
The bill's core mechanism is a targeted expansion of GSE (government-sponsored enterprise) lending authority to fund construction of workforce housing. It is fundamentally a housing-finance policy, not a tax or regulatory measure, and directly addresses supply-side constraints in the affordable housing market.
What the text implies
- Fannie Mae and Freddie Mac will be required to allocate 22% of their available capital to these construction loans, potentially reducing their capacity for traditional mortgage purchases and refinancing, which could affect mortgage availability or pricing for other borrowers.
- The one-year occupancy requirement and restrictive covenant may create a secondary market for these homes after the first year, potentially enabling speculation or flipping if resale restrictions are not enforced.
The full analysis lists 4 implications of this text.
Who stands to gain
homebuilders and developers (construction loan demand); depository institutions and credit unions (loan origination fees); Fannie Mae and Freddie Mac (securitization revenue and portfolio expansion)