On Monday, the White House (May 16) unveiled a plan to boost the housing supply and lower costs for tenants and homeowners. It is part of the Administration's effort to help people cope with inflation.
According to the Housing Supply Action Plan, the government will gradually reduce the burden of housing costs by increasing the supply of quality housing in each community. The plan includes legislative and administrative actions.
Officials said that this plan would help close the U.S. housing supply gap in the next five years. It begins with creating and preserving hundreds of thousands of affordable housing units over the next three years.
In a summary of the plan, the White House announced that "When paired with other policies which lower housing costs and ensure affordability, such as rental assistance and down payment assistance, closing the gap means that Americans will achieve more affordable rents and more accessible homeownership in every community."
The program will help tenants who are struggling to cope with high rents, especially focusing on preserving rental housing for low- and moderate-income families.
Detailed measures in the plan include using new financing mechanisms to build and preserve more housing where financing gaps currently exist; existing forms of federal financing will be expanded and improved, including making certain loans more widely available for affordable multifamily housing development and preservation.
The Administration also said that it would work with private companies to improve supply chain issues that impede construction to complete more new home construction this year than in any other year since 2006.
One of the most significant issues constraining housing supply and production is the lack of available, affordable land, which is caused mainly by the state and local zoning as well as land use laws and regulations that restrict housing density. Earlier this year, the Administration began using the federal transportation program to encourage state and local governments to increase the housing supply without violating the current law.
The plan also includes a call to action from the Congress. The White House urged lawmakers to pass President Biden's Unlocking Possibilities Program. The program, which was passed by the House of Representatives last year, would establish a new round of $1.75 billion grant programs through the Department of Housing and Urban Development (HUD).
The White House also urged lawmakers to pass Biden's 2023 budget request, which includes a proposal to allocate $10 billion to HUD to increase access to affordable housing.
The housing supply plan comes as the White House makes numerous proposals to address the rising costs brought by inflation. Biden's approval ratings have been stagnant for months, t and his midterm election agenda has also been hampered.
Last week, the president said that tackling inflation is his "top domestic priority”. He acknowledged that many Americans face pressure during a period of high prices for gasoline, food and other commodities.
Last month, the Administration announced that it would send millions of dollars to every state to help American families cope with soaring energy costs. It’s also another attempt by the White House to ease the burden on homeowners.
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