Fannie Mae-No Politics (FNMA)

[Robert from yahoo bd]

IV. The Biden-Harris Administration’s Housing Proposals
To follow through on these principles, expand access to housing, and create good jobs for working Americans, the Biden-Harris Administration has put forward a robust housing agenda. The Administration’s proposals fall into four main categories:

· Offering tax credits to incentivize construction and rehabilitation of affordable housing. The American Jobs Plan would expand existing tax credits, like the Low-Income Housing Tax Credit (LIHTC). It would also create new tax credits to make it cost-effective to build new units of affordable housing and to rehabilitate existing homes in poor condition. The Biden-Harris Administration has proposed investing an additional $55 billion in LIHTCs, alongside the creation of new credits based on the Neighborhood Homes Investment Act, which incentivizes development and rehabilitation of owner-occupied housing in distressed neighborhoods.

· Investing in affordable rental housing. The American Jobs Plan would offer additional subsidies to build and preserve rental housing for the lowest-income renters. These investments include a $35 billion investment in the HOME Investment Partnerships program, $45 billion for the Housing Trust Fund, $12 billion for the Capital Magnet Fund, and $2 billion for new project-based rental assistance agreements.

· Revitalizing public housing. To respond to the needs of the nearly 2 million Americans living in public housing, the Biden-Harris Administration has proposed investing $40 billion to rehabilitate and revitalize America’s public housing. These investments will improve the safety and health of these housing facilities and ensure public housing meets the high standards embodied in the Administration’s housing principles.

· Incentivizing removal of exclusionary zoning policies. For far too long, access to affordable housing has been inhibited by exclusionary zoning laws like minimum lot sizes, mandatory parking requirements, and unnecessary prohibitions on multifamily housing. These policies have constrained the housing supply and driven up costs, locking working families out of opportunity. The Biden-Harris Administration has proposed creating a $5 billion incentive program to reward jurisdictions that take action to eliminate these exclusionary policies and reduce barriers to the creation of affordable housing.

We estimate the housing proposals in the American Jobs Plan will generate production or preservation of more than 2 million affordable housing units. These Federal investments will be augmented by private sector capital to further expand the supply of affordable housing, both from traditional real estate developers and from community-focused organizations like Community Development Financial Institutions and minority depository institutions, which are already receiving an influx of $12 billion in capital under the American Rescue Plan. The AJP will put in place incentives that pair public funds with private investment, side by side, to maximize the impact of these policies and catalyze the new housing developments our country needs. This new housing will offer a pathway to financial stability for millions of families and help address the longstanding economic and racial disparities that for too long have been endemic in America’s housing system.

https://secjanetyellen.medium.com/the-state-of-the-housing-market-2f3cece054e