APARTMENT ADVOCATE
White House Announces Plans to Increase Housing Supply
The administration ' s Housing Supply Action Plan seeks to reduce restrictive land use policy and expand opportunities to build affordable housing . Here ' s what you need to know .
On May 16 , the White House released the Biden-Harris Administration Housing Supply Action Plan which aims to ease the burden of housing costs over time by boosting the supply of quality housing in every community .
The plan has two key pillars to increase housing supply : reduce restrictive land use policy at the local level and expand financing opportunities to build affordable housing .
Each priority also includes several regulatory and legislative proposals . While the latter require Congressional action , these priorities signal the Administration ’ s vested interest in these housing policy solutions and commitment to address the nation ’ s housing affordability challenges . Highlights include :
Incentives For Zoning Reform
Administrative Actions ɑ
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The Department of Transportation will give preference to jurisdictions that enact zoning reforms and reduce regulatory barriers to housing development for certain grants totaling roughly $ 6 billion . It will also increase financial support for some projects that include residential development .
The U . S . Economic Development Administration will update its investment priorities to include density as a consideration for its next round of grants .
Legislative Proposals ɑ
Establish the Unlocking Possibilities Program which would create a $ 1.75 billion grant program for states and localities to reduce unnecessary regulatory barriers . ɑ
Provide $ 10 billion to the Department of Housing and Urban Development ( HUD ) to reward jurisdictions which have already undertaken pro-housing zoning reforms .
New Financing
Administrative Actions ɑ
The Federal Housing Administration ( FHA ) and Federal Housing Finance Agency ( FHFA ) will explore ways to finance renovation and construction of accessory dwelling units .
Legislative Proposals ɑ
Allocate $ 25 billion in grants for multifamily and single-family affordable housing production which would be distributed to state and local housing finance agencies in order to tailor development to regional needs .
Improving Existing Financing Opportunities
Administrative Actions ɑ
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Fannie Mae and Freddie Mac ( The Enterprises ) will seek to expand and market their forward commitment programs , which help developers pay off a construction loan when the project is completed . The FHFA and Fannie Mae will also explore the feasibility of purchasing Construction to Permanent multifamily loans .
The Department of the Treasury ( Treasury ) is encouraging jurisdictions to use their American Rescue Plan funds to build more affordable housing .
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