Congressman Lynch said, "Today in
The Lynch amendment has been included in H.R. 1427, the Federal Housing Finance Reform Act of 2007. The bill will overhaul the regulatory oversight of the government sponsored enterprises (GSE) of Fannie Mae, Freddie Mac and the Federal Home Loan Banks, and create a new, independent regulator with broad powers analogous to current banking regulators. In addition, the bill creates an off-budget and non-taxpayer financed affordable housing fund, which will dedicate hundreds of millions of dollars for the construction, maintenance and preservation of affordable housing. The first year of this fund will be dedicated to the hurricane stricken areas of the
Frank and Lynch will hold a congressional field hearing entitled "Household Incomes and Housing Costs: A New Squeeze for American Families,” to focus on the combined impact of the slow growth of household incomes and the pattern of housing costs increases on (a) the ability of American families to find safe and affordable housing, and (b) the ability of employers to recruit and retain employees. The Committee will explore how the increase in income inequality may have fueled increases in housing costs and priced large numbers of American families out of previously affordable communities. The Committee is also seeking to examine the appropriateness and adequacy of current federal policy to support the production of affordable housing – for both the rental and homeowner markets.
"Far too many American families face a double whammy when they look for housing. For most Americans, incomes have been stagnant for more than two decades while housing costs have soared,” said Congressman Frank. "Growing income inequality has priced the majority out of previously affordable communities.”