Congress expands affordable housing construction—but caps it at 22% of GSE capital

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 bill grants the Director of FHFA broad discretion to define 'support from the local community' and to determine eligible loan originators, creating regulatory flexibility but also potential for inconsistent application across regions.
• By capping individual loans at $100,000 per unit, the bill may incentivize smaller, scattered-site projects over larger developments, which could increase per-unit development costs and reduce economies of scale.

Who it affects

Ordinary families in the 90–130% AMI range (working families priced out of traditional markets) gain access to newly constructed affordable homes. The bill creates a new financing pathway for builders to develop housing in this income band, potentially expanding supply and lowering barriers to homeownership for working families. The 10% builder equity requirement and local approval requirements reduce moral hazard.

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)
• mortgage servicers (servicing fees on securitized loans)

Named in the bill

Fannie Mae, Freddie Mac, Federal Housing Finance Agency (FHFA), depository institutions, credit unions, state housing finance agencies, homebuilders, developers, Federal Credit Union Act, Federal Deposit Insurance Act, Federal Housing Enterprises Financial Safety and Soundness Act of 1992

Where it stands

1 cosponsor: 1 Republicans.

• Jun 25, 2026 — Introduced · Congress.gov: “Introduced in House”
• Jun 25, 2026 — Referred to House Committee on Financial Services · Congress.gov: “Referred to the House Committee on Financial Services”

Dates and quoted wording are Congress.gov's action record; the timeline shows status changes, not every procedural step.

Money around this bill

1 lobbying clients named this bill on 1 disclosure filings across 1 quarter, Jun 2026 to Jun 2026. Those filings disclosed $216,377 in lobbying spend. A filing names 101 bills on average, so that figure is what each filing reported, not a share belonging to this bill.

More lobbying clients named this bill than 0% of bills with at least one filing.

Scott Fitzgerald, the sponsor, reported $915,000 in PAC receipts in the 2026 cycle.

• Associated General Contractors of America — $216,377 on 1 filing

Lobbying Disclosure Act filings through Jul 20, 2026. A filing shows who paid to lobby on a bill it names, not what changed.