Maxine Waters Introduces Groundbreaking Legislation to Address Housing Crisis and Racial Wealth Gap

Congresswoman Maxine Waters has taken actions this past to address pressing issues affecting communities across the United States including the housing crisis. In a bold move, Congresswoman Waters reintroduced three critical pieces of legislation targeting affordable housing expansion and narrowing the racial wealth gap.

By Philtrina Farquharson | Contributing Writer

Congresswoman Maxine Waters has taken actions this past to address pressing issues affecting communities across the United States including the housing crisis. In a bold move, Congresswoman Waters reintroduced three critical pieces of legislation targeting affordable housing expansion and narrowing the racial wealth gap.

The Housing Crisis Response Act of 2023 is set to provide an unprecedented investment of over $150 billion into fair and affordable housing, resulting in the creation of approximately 1.4 million accessible homes and helping nearly 300,000 households afford their rent. Additionally, this bill addresses the racial wealth gap through a groundbreaking national investment in homeownership for first-time, first-generation homebuyers.

The second bill, known as the Ending Homelessness Act of 2023, takes aim at ending homelessness and significantly reducing poverty in the country. By transforming the Housing Choice Voucher program into a federal entitlement, this legislation ensures that every eligible household receives assistance, effectively eradicating homelessness. Furthermore, the bill prohibits housing discrimination based on source of income and veteran status, emphasizing the importance of equal access to housing opportunities.

Recognizing the persistent racial wealth and homeownership gaps in the United States, Waters introduced the Down payment Toward Equity Act of 2023. This bill offers $100 billion in direct assistance to support first-time, first-generation homebuyers in purchasing their first homes. The funds will be allocated to cover down payments, and closing costs, and to help lower mortgage interest rates, effectively bridging the wealth divide.

In addition to her efforts in expanding housing opportunities, Congresswoman Waters has also focused on addressing failures within the banking industry. Today, she announced the introduction of three bills in response to the recent failures of Silicon Valley Bank, Signature Bank, and First Republic Bank. These bills aim to enhance the safety and soundness of the banking system, protect community banks, and ensure executive accountability.

One such bill, the Failed Bank Executives Accountability and Consequences Act, seeks to expand bank regulatory authority to hold bank executives accountable for their negligence in contributing to a bank’s failure. Through provisions such as clawing back compensation, imposing fines, and banning future work in the industry, this bill ensures that executives of failed banks face appropriate consequences.

The Incentivizing Safe and Sound Banking Act expands bank regulator authority, allowing the prohibition of stock sales by bank executives when issuing cease-and-desist orders to banks that fail to comply with the law. This measure aims to promote compliance and prevent further instances of unsafe banking practices.

To address a significant loophole in existing regulations, Congresswoman Waters introduced the Closing the Enhanced Prudential Standards Loophole Act. This bill ensures that large banks without bank holding companies, such as Signature Bank and First Republic Bank, are subject to enhanced capital, liquidity, stress testing, resolution planning, and other related requirements. By closing this loophole, equal standards are applied to large banks of comparable size, complexity, and risk.

These actions by Congresswoman Waters highlight her commitment to advocating for meaningful change and addressing critical issues affecting communities across the nation. As the top Democrat on the House Financial Services Committee, Waters continues to champion reforms that strengthen the banking system, protect consumers, and promote economic prosperity for all.