1. United States
2. Letter

Dear Representative and Local Housing Authority, My name is Melissa DuVall from Prosperity, South Carolina. I am writing to propose a program that would address the shortage of safe, affordable housing and create local jobs. Right now Fannie Mae and Freddie Mac take back thousands of foreclosed homes but are required to sell them quickly, usually to investors. Private banks and real estate owned entities can hold and rent these properties, so the federal government should be able to do the same. I propose that foreclosed REO properties be transferred to local and state housing authorities to be managed as public rental housing under Section 8. The housing authority would handle maintenance, inspections, and tenant services using existing staff, with additional hiring as needed. This would create jobs in property management, maintenance, and administration right here in our community. To make this work, the program should be structured so the federal and state entities are exempt from property and corporate taxes on these holdings, since they are serving a public purpose. Tenants would still pay their normal taxes and rent. Rental income should be split, with the federal government receiving the larger share as the owner, and the state and local authorities receiving a portion to cover operations and maintenance. A portion of the federal share should be earmarked for veterans housing and for state level programs. This approach would give Section 8 families more safe housing options and create competition for private landlords, encouraging better upkeep. It would also generate revenue for the public sector and help stabilize neighborhoods. I urge you to introduce legislation or policy directives that allow the transfer of REO properties from the GSEs to local housing authorities for use as affordable rental housing under this tax exempt, revenue sharing model.