Massachusetts Senator Elizabeth Warren on Tuesday introduced legislation to address the affordable housing gap. The bill, called the American Housing and Economic Mobility Act, would direct about $500 billion, primarily to build and rehabilitate housing for low- and moderate-income Americans. It would also create incentives for local governments to eliminate land use restrictions that drive up costs. It would also steer down payment assistance monies to communities historically denied mortgages by the government - people living in formerly redlined or officially segregated areas. And it would invest $2 billion "to support borrowers" who owe more in a mortgage than their homes are worth. If passed, the bill is projected to create 3.2 million new housing units and reduce rents by 10%, according to an independent analysis from Moody's Analytics. Warren proposes to pay for the policies by increasing the estate tax back to Bush-era levels.
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