The White House released a comprehensive plan to address the affordable housing crisis. 

Like most White House initiatives, the plan needs Congressional approval before any of the ideas can be put into action. 

Record low housing inventory and record high prices has made it impossible for many people to own a home. Through a combination of policy changes, incentives, and grants, the White House plan aims to alleviate the burden of housing expenses, particularly for low- and middle-income households.

The detailed plan outlines a strategy to increase housing construction and make housing more affordable. Here’s an overview of the plan and what assistance home buyers can expect as they navigate the home buying process. 

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1. Increasing Supply

If the supply or inventory of homes increases, we could see a leveling out of the crazy competition for homes. Boosting the supply of affordable housing units across the country through incentives for builders will increase construction of new housing developments.  The president's plan calls for an expansion of the low income housing tax credit. This would help build over a million more affordable rental units.

Specifically, the administration aims to streamline regulatory processes and give  financial support to developers building affordable housing projects. In addition, there are projects in the works to repurpose vacant office space for housing. Some of these projects, like this one in Washington D.C. 

2. More Rental Assistance

Too many people are struggling to pay the rent. The White House plan offers assistance by expanding rental assistance programs. Directing more funds toward rental assistance, means renters can remain housed and not be forced out of living spaces due to high rent increases that are unsustainable. The White House plan addresses rent gouging by corporate landlords and eliminates rental junk fees.

3. Creating Pathways to Homeownership

Home owners are vested in their neighborhoods and communities. Home owners build equity in their homes and benefit from generational wealth. 

The White House plan includes things like down payment assistance programs, tax credits, and access to mortgage financing programs. At the same time, measures will be taken to address discriminatory lending practices and other practices that continue to harm people of color.  The White House plan calls on Congress to pass mortgage relief credit for middle class first time home buyers. This plan would give an annual tax credit of $5000 a year for two years which would be equivalent to cutting the mortgage rate by more than 1.5 percentage points for two years.

Another benefit in the White House plan calls on Congress to provide up to $25,000 in down payment assistance to first generational homebuyers whose families have not experienced generational wealth.

4. Addressing Housing Discrimination

Housing discrimination continues to be a serious issue in real estate. Fortunately, the White House plan doubles down on the enforcement of existing fair housing laws, and supports initiatives to promote diversity and mortgage lending and real estate transactions.  

5. Improving Infrastructure

Housing is not a separate issue from transportation and neighborhood revitalization. It’s all interconnected and part of the overall upgrading of cities, neighborhoods and metropolitan areas. President Biden's plan includes funding for transportation improvements, neighborhood revitalization initiatives, and upgrades to water and sewer systems. By taking into consideration a broader picture that includes housing, transportation and community revitalization, the quality of life for everyone improves.  

The White House plan needs the collaboration with Congress and all state and local governments. 

What is heartening is that the plan approaches housing as a human right, not just something for the lucky or wealthy. 

During his State of the Union Address, President Biden will call on Congressional Republicans to end years of inaction and pass legislation to lower costs by providing a $10,000 tax credit for first-time homebuyers and people who sell their starter homes; build and renovate more than 2 million homes; and lower rental costs.

Fact Sheet: President Biden Announces Plan to Lower Housing Costs for Working Families

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How can we help?

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