Velazquez Bill Would Help Address Housing Costs

Washington, DC – As President Obama laid out his agenda Tuesday night for ensuring the middle class benefits from the nation's rebounding economy, Rep. Nydia M. Velázquez (D-NY) introduced legislation aimed at helping working families secure affordable housing, one of the fastest growing costs in major urban areas. Through tax code changes and federal grants, her legislation, H.R. 480, the "Housing America's Workforce Act," would create new opportunities for employers to help their staff with rent and the cost of purchasing a new home.

"The President made a compelling case Tuesday night for a series of commonsense steps that could help middle class families get ahead," Velázquez said. "Addressing rising housing costs should be part of this vision and my bill would make it easier for working families to afford rent or purchase a new home."

Velázquez's measure would build on innovative private and public initiatives that have demonstrated success in tackling housing shortages. Under her proposal, employers could qualify for a 50% tax credit when helping employees with rent and homeownership assistance. For small firms, the credit would be as much as 100% of the outlay. Additionally, this assistance would not be included in employees' gross income, helping lower tax bills for low-income and middle-income workers. The measure also authorizes grants for local government and nonprofit housing groups that seek to promote the growth of employer-assisted housing programs.

"Employee-assisted housing programs have a strong track record of increasing affordable housing options for working families, while benefitting the economy and strengthening local communities," Velázquez noted. "The biggest hurdle for many homebuyers is saving enough for a down payment and my bill will make this easier for them by incentivizing employer assistance. Also under this bill, we can encourage businesses of all sizes to consider housing assistance as a way of compensating their employees, especially in major cities where there has been job growth, but the housing market remains tight."

Rents throughout the country, but especially in major urban areas like New York, have escalated in recent years. Between 2000 and 2014, median apartment rents in New York City increased 75%, while real incomes declined by 5% on average. Compared to the other 60 largest cities in the United States, New York also has the lowest rate of homeownership. Across all five boroughs, home prices increased by almost 10% between 2012 and 2013.

"Workers in New York face unique challenges finding suitable housing for themselves and their families," Velázquez stated. "By harnessing innovative solutions in the private sector we can help alleviate this problem, while encouraging business growth and helping small companies attract and retain high-quality employees."

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