Legislation leverages federal program’s prior success to increase supply of affordable housing nationwide
WASHINGTON, DC – (RealEstateRama) — U.S. Congresswoman Joyce Beatty (OH-03) introduced the Jumpstart Housing Opportunities Utilizing Small Enterprises (HOUSE) Act of 2016, or Jumpstart HOUSE Act, H.R. 5144.
In 2010, the Small Business Jobs Act, P.L. 111-240, was enacted, creating the State Small Business Credit Initiative (SSBCI). Funded with $1.5 billion, the SSBCI disperses funds to participating states who in turn award funding to small businesses for state-sponsored venture capital programs. Without reauthorization, the SSBCI is set expire at the end of Fiscal Year 2017 (FY2017).
The Jumpstart HOUSE Act would reauthorize the SSBCI program for an additional eight years with $1.5 billion in new funding. Additionally, H.R. 5144 will improve SSBCI by requiring state business development agencies to set aside the lesser of $2.5 million or 10 percent, of unobligated funds, for small businesses to purchase, rehabilitate, or operate affordable housing units.
“Recent studies find that more than 21 million households pay more than 30 percent of their income toward rental housing, which is up from 14.8 million in 2001. This represents a 40 percent increase in less than 15 years,” Beatty said. “Unfortunately, the supply of affordable housing has not kept pace with demand. The SSBCI program can help fill the gap.” Beatty continued, “The Jumpstart HOUSE Act will help increase the supply of quality, affordable housing for hardworking families, while at the same time increase the availability of credit for small businesses, generate jobs and stimulate economic development. Talk about a win-win.”
Since its inception, the SSBCI program has created or retained more than 140,000 jobs and is directly responsible for more than 12,400 private sector loans to small businesses—42 percent of which were made to low- and moderate-income communities.
