The Biden administration on Wednesday announced a series of political maneuvering intended to expand the supply of affordable housing amid a record rise in house prices.
The White House said Wednesday that the Department of Housing and Urban Development (HUD), the Department of the Treasury and the Federal Housing Finance Agency (FHFA) would expand and reimpose several incentives and subsidies for the construction of approximately 100,000 additional homes over the next three years. .
The administration is also seeking to limit the number of new homes purchased by investors and asset managers by expanding exclusive purchase windows for individuals, families and nonprofits.
“As Congress strives to pass the Build Back Better agenda, which includes a historic investment in building new homes and making existing homes safer, healthier, and more energy efficient, the President knows we look forward to action,” the White House said in a statement Wednesday.
“The large and long-standing gap between supply and demand for affordable housing for renters and owners is making it more difficult for families to buy their first home and driving up the cost of rent,” he said. -he adds.
The outbreak of the coronavirus pandemic has worsened a severe affordable housing shortage that persisted for years before the twin health and economic crises. Sales prices for new homes have risen nearly 20% in the past 12 months as the rush of buying activity, supply shortages and a marked slowdown in construction fueled sky-high price increases .
To help bolster the construction of affordable housing, the Treasury and HUD will reinitiate a risk-sharing program with public housing finance agencies to help eliminate some of the financial challenges associated with financing lower-cost housing. The FHFA is also increasing its quotas for the number of homes supported by federal tax credits for affordable housing, multi-family homes and manufactured homes that Fannie Mae and Freddie Mac are required to finance.
The administration will also launch several studies and community outreach initiatives focused on government support for affordable housing and exclusionary zoning policies.
The measures announced Wednesday are aimed at reducing the national shortage of affordable housing as Biden and Democrats attempt to legislate a $3.5 trillion reconciliation spending package. Although the measure has not been finalized, the bill is expected to include tens of billions of dollars for the construction of social housing, incentives for the private construction of affordable housing and subsidies for the abolition of zoning laws. that make it difficult or impossible to build cheaper housing. in accordance with the lot size, height and parking requirements.