Housing News

On Monday, President Joe Biden proposed spending Billions of dollars to increase housing and reduce homelessness as he has a $7.3 trillion spending plan for the next fiscal year.

Biden in his proposal addresses a wide range of issues such as several programs to help cities and states to put an end to the housing crisis.

Biden after his proposals were made public said, “The cost of housing is critical to families nationwide. If inflation keeps coming down, mortgage rates are going to continue to come down as well. But I’m not waiting.”

There will be an increase in the low-income housing tax credit (LIHTC) for states. This increase will allow states to build or preserve an additional 1.2 Million affordable rental units as per the White House fact sheet.

Biden has also asked for $1.3 Billion in HOME investment partnership grants for states to use these funds for building more affordable housing. At present, the program is receiving $1.25 Billion in the current fiscal year. Biden’s proposal would not completely restore the funds that were reduced from the $1.5 billion allocation received the previous year by Congress.

A new $20 Billion competitive grant program has also been proposed by Biden for municipalities. According to the budget proposal, the innovation fund for the housing expansion program will give grants to local governments along with other eligible entities to minimize the supply gaps and reduce housing costs.

Biden said that the program will make way for communities to build housing, renovate housing, and convert commercial spaces into residential spaces. This will help struggling renters, owners, and middle-class families.

Besides this, President Biden has proposed creating project-based rental assistance contracts to provide $7.5 Billion to encourage the development of climate-resilient housing.

Biden in his address addressed the nation’s housing crisis as it was the key issue facing the state. He also urged Congress and said, “Now pass my plan and build and renovate 2 million affordable homes and bring those rents down.”

The National Council of State Housing Agencies chose not to speak regarding the proposal but backed the concepts Biden Mentioned in his address. Here’s the statement released by the council:

“The ideas reflect a comprehensive approach for addressing a multifaceted crisis: incentives for apartment construction, home sales, and home buying; resources to local communities for reducing regulatory development; and assistance to economically vulnerable renters”.

It is uncertain how much of the new White House budget House Republicans are willing to accept. Lawmakers are working on the second set of six spending bills that started six months ago. So far, the house republicans have agreed to keep the current year’s spending the same as last year.

Biden not only proposed building more affordable housing but also urged Congress to take some measures to combat homelessness. The President’s budget would increase spending for housing choice vouchers by $2.5 Billion to enable low-income people to pay their rent.

Biden is also coming up with a new program to help the youth aging out of foster care and requires 9 Million to help them pay the rent. He proposed another $13 Billion for rental assistance for low-income veterans.