The current strong economy is increasing rents and home prices everywhere, while many Americans have seen their incomes stagnate, and housing become less affordable. Decent, affordable housing is a keystone of a stable life. Families who spend too much on housing may be forced to cut back on nutrition, health care or other necessities. Families that cannot secure a decent place to live are in even worse shape. It is time to reaffirm our commitment to that goal.
Federal law allows a tax deduction for mortgage interest.
This can and should be done without increasing taxes for middle-class homeowners. Institute a crash program to expand the supply of affordable housing with subsidies and loan programs for the rehabilitation and construction of affordable housing. Encourage community development credit unions and other community-based lenders, and the development of cooperatively owned housing. Encourage the National Cooperative Bank to promote and finance affordable, cooperative housing. Identify individuals and families who still cannot afford decent housing, and implement a program to close the affordability gap within five years.