WASHINGTON— The Senate Thursday passed H.R. 6644, the “Housing for the 21st Century Act,” advancing a sweeping housing-affordability package that could eventually create an opening for long-sought credit union priorities—but as approved by the Senate, the bill stops short of including several key provisions the industry had secured in the House, including Central Liquidity Facility modernization and other operational reforms.
The Defense Credit Union Council urged both House and Senate leaders to work together to quickly finalize a comprehensive package that expands access to affordable housing and includes bipartisan Central Liquidity Facility (CLF) modernization language championed by Senators Alex Padilla and Kevin Cramer.
“The Senate’s action to advance housing affordability legislation is an important step toward addressing one of the most pressing financial challenges facing American families,” said Anthony Hernandez, DCUC president/CEO. “Credit unions stand ready to support solutions that expand access to homeownership and strengthen financial stability for all families and communities nationwide. As lawmakers work to finalize the bill, we strongly encourage inclusion of the bipartisan Padilla–Cramer CLF provisions to ensure credit unions maintain the liquidity tools necessary to continue serving members during times of economic stress.”
DCUC noted it has been actively advocating on behalf of credit unions nationwide as Congress considers policy solutions to the housing crisis.
According to the National Low Income Housing Coalition’s The Gap report, the United States faces a shortage of 7.3 million affordable homes for extremely low-income renters, leaving only 34 affordable and available units per 100 households in need. At the same time, federal data show nearly half of renter households are cost-burdened, and more than 8.5 million very low-income renters experience severe housing cost burdens, according to the U.S. Department of Housing and Urban Development’s Worst Case Housing Needs report, DCUC pointed out.
For military families, these challenges are often compounded by frequent relocations, rising housing costs near installations, and housing allowances that may lag behind market trends, DCUC said.
“Military families face unique housing affordability challenges, and credit unions continue assist in these areas by providing solutions through innovative mortgage products, financial counseling, and affordable housing investments,” said Jason Stverak, DCUC chief advocacy officer. “Ensuring credit unions have reliable emergency liquidity through modernization of the CLF will help maintain mortgage lending continuity, strengthen financial readiness, and support housing stability in military and civilian communities alike.”
Additionally, credit unions serve a critical role in helping service members and their families achieve and maintain homeownership by specializing in VA home loans, offering low- or zero-down payment mortgage products, supporting first-time homebuyer programs and financial literacy initiatives, and investing in community-based affordable housing efforts. By providing affordable financial services and responsible lending options, credit unions help families avoid predatory lending and build long-term financial resilience, DUC added.
“DCUC looks forward to continuing to work with Congress and the Administration to ensure the final housing package strengthens housing affordability solutions and supports financial institutions that help make stable homeownership possible for millions of Americans,” says Hernandez.
Washington Credit Union Advocate John McKechnie provided his perspective.
“For credit unions, the Senate bill is just not as useful or beneficial as the House counterpart that was passed last month,” McKechnie told CUToday.info. “There’s an unwritten rule in Washington that you should never try to lobby process, but I sure hope credit unions do everything we can to get both chambers to come together, have an actual conference on these competing measures, and incorporate some of the credit union-sought provisions like board modernizations, loan maturities, CLF updates among other things. This might be our only shot in this Congress.”
French Hill Comments
“Today, the Senate took an important step in the legislative process," said House Committee on Financial Services Chairman French Hill. "This Congress, the House has passed bipartisan legislation to empower homeowners and renters, strengthen communities, and foster more affordable choices for all Americans. It is critical we get the details right and mitigate some of the concerns raised by House members with the Senate bill. I hope the work Senator Scott and I have done together can eventually become law, and I look forward to working with all parties to achieve a bicameral success that will bring down the cost of housing and benefit the American people.”
America's Credit Unions and the Defense Credit Union Council had urged the Senate to adopt the bipartisan CLF amendment from Padilla and Cramer.