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Rep. Maloney's "Kiddie Mac" Legislation Headed for Vote on House Floor

Date: April 3, 2007
Location: Washington, DC
Issues: Housing and Property

Late last week, the House Committee on Financial Services passed the Federal Housing Finance Reform Act of 2007 (H.R. 1427), which includes language authored by Congresswoman Carolyn B. Maloney (D-Manhattan, Queens) that would encourage lenders to offer mortgages on low and moderate-income housing that includes licensed child care facilities. The Housing Finance Reform Act is expected to move to the House floor for a vote in mid-April.

Government-sponsored enterprises (GSEs) such as Freddie Mac and Fannie Mae purchase existing mortgages made by banks and other primary lenders, thereby helping replenish the supply of money available to primary lenders to make new mortgages. Current law requires the GSEs to purchase a set percentage of low and moderate-income mortgages each year to help ensure liquidity for future low and moderate-income loans.

Rep. Maloney's "Kiddie Mac" measure would give the GSEs a 125% credit toward their affordable housing goals when they purchase mortgages made to Americans who provide licensed child care in low or moderate-income housing. This increased credit would help encourage banks to offer more mortgages to licensed child care providers.

"Many child care providers in low and moderate-income areas operate out of their homes," said Rep. Maloney. "In my congressional district, more than half of all women with preschool-age children are in the workforce and desperately need help finding child care. My ‘Kiddie Mac' legislation would help solve the shortage of available, affordable licensed child care facilities, which is both a local and a national problem."

Americans who live in low and moderate-income areas often have relatively little access to licensed child care facilities. According to the New York City Administration for Children's Services, New York City's child care system currently has the capacity to provide care for only 27% of the 300,000 NYC kids eligible for subsidized day care.

Rep. Maloney has introduced similar legislation in each of the last seven Congresses.


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