SW Vegas News

President Joe Biden has put forward a significant funding proposal aimed at addressing the housing supply crisis in his federal budget for the fiscal year starting October 1, 2022. Released on Monday, the proposal requests a 34% increase in funding for the Department of Housing and Urban Development compared to last year.

The proposed budget includes $50 billion in grants and loans to boost affordable housing supply. This comprises $32 billion for the Housing Choice Voucher Program and nearly $2 billion dedicated to the HOME Investment Partnership, aimed at creating more affordable homeownership opportunities.

"This unprecedented investment demonstrates how seriously the White House views the supply crisis," stated Shannon McGahn, chief advocacy officer for NAR. "We worked with the administration and Congress over the past year on comprehensive policy proposals, and now a consensus is growing across Washington that decisive action is needed."

In 2021, NAR commissioned a report revealing a shortage of almost 6 million residential housing units nationwide. McGahn noted that "NAR's report became the center of conversation on housing supply, and our policy recommendations are showing up in proposed legislation in Washington and around the country."

To address this shortage, NAR advocates for new funding for affordable housing construction, preserving and expanding tax incentives to renovate distressed properties, converting unused commercial spaces into residential areas, and encouraging zoning reform.

The proposal will now be reviewed by Congress. "A president’s budget is a wish list of policy goals and ambitions," explained McGahn. "Many changes will be made to this plan, but it is good news that the White House sees this issue for what it is—a crisis—and many in Congress on both sides of the aisle agree. The next step is that Congress will hold hearings on this budget proposal. We will continue to work with lawmakers and encourage an all-hands approach to the supply shortage so that the American dream is achievable for all Americans."

NAR's policy team continues to analyze President Biden’s entire $5.8 trillion budget request and plans to provide detailed insights on nar.realtor.