Press Release News

President Biden is making efforts to lower housing costs and increase the housing supply to address the shortage of affordable housing. President Biden also called on Congress to support the construction and rehabilitation of nearly 2 Million homes, lowering down the cost for renters and helping first-time homebuyers looking to downsize.

President Biden revealed his agenda to bring down the cost of housing in Nevada today. Biden will be discussing the investments already made by the American Rescue Plan to boost affordable housing, lower housing costs and keep homeowners in their homes. Nearly 700 Million is invested in affordable housing supply including the investments made in senior housing. Consequently, Clark County is coming up with 200-unit affordable housing developments and 1000 new senior apartments.

Here’s an insight into Biden’s plan to lower housing costs and build nearly 2 Million homes.

Mortgage relief credit- Biden has called on Congress to pass the Mortgage relief credit to provide a tax credit of $10,000 over two years to middle-class first-time homebuyers. Doing so will reduce the mortgage rate by more than 1.5% for two years and save $400 in mortgage payments to families. More than 3.5 Million families will be able to purchase their first home over the next two years with this.

Reducing closing costs- The policies and pilots to reduce closing costs for homeowners have been approved by the Federal Housing Finance Agency. The homeowners would be able to save nearly $1500 which will unlock more significant savings for homeowners.

Promoting competition in the housing market- Biden discussed the need to promote housing competition in the market and lower housing costs. The settlement reached by the National Association of Realtors is an important step towards boosting competition and can save $10,000 on the median home sale.

Down payment assistance- The President urged Congress to provide down payment assistance to first-time homebuyers who have not yet had the opportunity to taste the benefits of generational wealth associated with homeownership. This down payment assistance can help nearly 4000 families to buy their first home.

Tax credits to build housing- Biden wants to expand the Low-income housing tax credit (LIHTC) to increase the number of affordable housing units. The renters staying in these housing units will be able to save hundreds of dollars every month than others.

More bank contributions- Biden proposed that the Federal Home Loan Bank needs to double its contribution towards the affordable housing program, from 10% to 20% to raise additional funds for affordable housing over the next decade. These funds will go a long way to help low-income homeowners to purchase homes.

Innovation fund for expanding housing- A new $20 Billion fund has been introduced by Biden to support communities across the country to build more housing and reduce costs. The fund would aid in the construction of affordable rental homes, remove unnecessary barriers to housing development, and come up with innovative models to increase affordable housing production.

Ending homelessness- Besides the ones mentioned above, Biden has also requested $8 Billion for the new grant program to expand temporary and permanent housing strategies for people experiencing homelessness or hovering at the risk of becoming homeless. Funds from this would go towards creative housing for homeless people.