Working Families Home Construction Act of 2026
Sponsored By: Representative Fitzgerald, Scott [R-WI-5]
Introduced
Summary
Allow Fannie Mae and Freddie Mac to purchase and securitize qualifying construction loans aimed at producing owner-occupied homes for moderate-income families. The bill would set loan size caps, require developer equity and local government support, and target buyers at 90% to 130% of area median income.
Show full summary
- Homebuyers: Homes financed under this program must be sold to families earning between 90% and 130% of area median income and sales must include a recorded covenant requiring the purchaser to live in the unit for at least 1 year.
- Builders and developers: Eligible loans may cover land, infrastructure, construction, fees, and certain developer incentives. Loans are capped at $100,000 per dwelling unit and $2.4 million per project and require the borrower to contribute at least 10% of project capital.
- Enterprises and regulator: The Federal Housing Finance Agency Director could permit the enterprises to buy these loans. Freddie Mac and Fannie Mae would set aside 22% of specified amounts for this purpose while related allocation lines are reduced to 53% and 25%.
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Bill Overview
Analyzed Economic Effects
2 provisions identified: 0 benefits, 0 costs, 2 mixed.
Supplemental loans for middle-income homes
If enacted, the bill would let the FHFA allow Fannie Mae and Freddie Mac to buy and bundle special construction loans. Each qualifying loan would be limited to $100,000 per dwelling unit and $2,400,000 per project, and would be treated as supplemental financing. Homes built with this money would have to be sold to families earning 90%–130% of area median income, and buyers would have to occupy the home at least one year with a recorded covenant. Developers would need to provide at least 10% of project capital and FHFA would set interest rates to consider buyer affordability and safety-and-soundness.
New funding split for Fannie and Freddie
If enacted, the bill would change how certain Fannie Mae and Freddie Mac funds are split. A new 22% share of the specified enterprise amounts would be allocated to buy and securitize qualifying construction loans under this Act. The other two shares in the statute would change from 65% and 35% to 53% and 25%, moving money toward these construction loans and away from the prior uses. This change would take effect upon enactment.
Sponsors & CoSponsors
Sponsor
Fitzgerald, Scott [R-WI-5]
WI • R
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov