VOL 2024 ISSUE 10
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VOL 2024 ISSUE 10
BUILDERSOUTLOOK
PUBLISHED BY THE EL PASO ASSOCIATION OF BUILDERS : NATIONAL , STATE AND LOCAL HOME BUILDING INDUSTRY NEWS
Comparing Housing Proposals of the 2024 Presidential Campaigns
Housing policy has become a central issue in the upcoming presidential election , with both Vice President Kamala Harris and former President Donald Trump offering proposals to address our nation ’ s housing supply and affordability challenges . While both have put forward policies that would support homebuyers and expand the supply of affordable homes , their plans diverge significantly in key areas like housing finance , renter protections , and immigration . Here ’ s a look at the housing proposals from each side .
Helping Homebuyers Both Trump and Harris have proposed tax policies to support first-time homebuyers . Harris ’ plan includes $ 25,000 in down payment assistance , with more generous subsidies for firstgeneration homeowners . This proposal goes beyond the $ 10,000 tax break proposed by the Biden administration .
The Trump campaign remains less specific , though the Republican platform emphasizes that the party would “ promote homeownership through tax incentives that support first-time homebuyers .” This could involve tax deductions for mortgage interest and mortgage insurance or tax credits .
Housing Supply
Harris has emphasized the need to increase the supply of homes for both sale and rent , establishing a goal of building three million new affordable homes over the next four years . She has supported proposals to expand the federal Low-Income Housing Tax Credit and create a new tax credit to build or rehabilitate owner-occupied housing in lower-income communities — known as the Neighborhood Homes Tax Credit . Her plan also includes a new tax incentive for developers building starter homes for first-time homebuyers . Additionally , Harris has proposed a $ 40 billion fund to help local governments innovate in housing construction .
With the proposals for expanding LIHTC and creating a Neighborhood Homes Tax Credit enjoying bipartisan support in Congress , it is possible that a second Trump administration would pursue these policies as well . Trump has also pledged to reduce regulatory hurdles to building new homes , and both campaigns have put forth plans to make federally owned land available for housing development .
Zoning Regulations
Harris and Trump have both recognized the impact of zoning regulations on restricting the supply of housing . Harris has pledged to “ take down barriers and cut red tape ” to accelerate housing construction , including streamlining the permitting process for transit-oriented development and office-to-residential conversions .
Trump has indicated an interest in easing environmental and permitting rules , recognizing that regulatory compliance makes up a significant percentage of the cost of building new housing . In his previous administration , he signed an executive order to create the White House Council on Eliminating Barriers to Affordable Housing Development , whose report could guide his policy in a second term . Among a variety of suggestions , the report emphasizes the importance of streamlining the federal environmental review process for affordable housing and the need to improve the regulation of manufactured housing .
During his first term , Trump suspended and eventually repealed the Department of Housing and Urban Development ’ s ( HUD ) Affirmatively Furthering Fair Housing ( AFFH ) rule , vowing to prevent low-income housing development in suburban areas . He has reiterated this stance during the current campaign , promising to keep such developments away from suburban neighborhoods .
While HUD released an updated AFFH rule under the Biden administration , it has yet to be finalized . A second Trump administration would likely look to publish a revised rule with looser terms , in line with the 2020 rule on Preserving Community and Neighborhood Choice .
Tenant Protections
In response to claims that price-setting software is facilitating collusion among landlords , Harris has called on Congress to pass the Preventing the Algorithmic Facilitation of Rental Housing Cartels Act , which would prohibit the use of algorithmic systems to coordinate rental housing prices .
Meanwhile , the Biden administration recently proposed capping rent increases at 5 % for two years for corporate landlords with more than 50 units , with the threat of revoking their access to depreciation deductions if they don ’ t comply . The proposal includes exceptions for newly constructed properties and units that have undergone significant rehabilitation . Harris is likely to continue supporting this measure .
The Trump campaign has not yet articulated specific proposals on tenant protections . However , his administration implemented a temporary eviction moratorium to keep Americans housed during the coronavirus pandemic .
Housing Finance
Trump and Harris are likely to differ significantly on housing finance policies , particularly regarding the government-sponsored enterprises ( GSEs ) Fannie Mae and Freddie Mac and the Federal Housing Administration ( FHA ). Trump is expected to advocate for ending the conservatorship of Fannie and Freddie , a goal left unfinished during his first term . His administration would likely seek to build up capital for the GSEs in preparation for their eventual release from conservatorship . In contrast , Harris has not made any specific comments on this issue and is expected to maintain the current administration ’ s status quo approach .
Harris is also expected to continue the Biden administration ’ s use of Fannie Mae and Freddie Mac to promote homeownership through various initiatives and pilot programs . Under Trump , the Federal Housing Finance Agency would likely revisit the approach taken during his first administration , limiting or ending pilot programs at the GSEs that they believe go beyond their core mission of supporting the secondary mortgage market .
Limiting Investor Activity
Both Harris and J . D . Vance , Trump ’ s vicepresidential pick , have expressed concerns about institutional investors in the housing market . Harris has called for Congress to pass the Stop Predatory Investing Act , which would eliminate tax benefits for investors who own and rent out 50 or more single-family homes . Vance has echoed similar sentiments , stating that institutional investors have driven up housing costs by reducing the availability of homes .
Immigration and Housing
Trump and Vance have linked immigration policies to housing availability . Trump has proposed strict measures against unauthorized immigration , suggesting this would free up housing for U . S . citizens . He has promised to ban mortgages and end housing benefits for unauthorized immigrants and redirect those funds to house homeless veterans . Vance has also argued that reducing immigration would help lower housing costs for Americans by reducing demand for housing .
As the election approaches , housing policy will continue to be a key issue area , with voters evaluating these contrasting approaches to addressing the nation ’ s housing challenges .
Source : https :// bipartisanpolicy . org / blog / comparing-thehousing-proposals-of-the-2024-presidential-campaigns /