On October 28, the National Association of Realtors announced breaking news: Congressional leaders have released a long-awaited framework for President Biden’s “Build Back Better” program, which includes hard-fought NAR priorities like investments in affordable housing and down-payment assistance. A top-line price tag and an outline of new social programs directly affect the real estate industry. It includes $150 billion in affordable housing investments.
Funding for the following programs is included within the housing section:
- Public Housing
- Housing Trust Fund — Builds and preserves housing for extremely low-income households
- HOME — Investments Partnership Program — allows state and local governments to use HOME funds for grants, direct loans, loan guarantees or other forms of credit enhancements, or rental assistance or security deposits.
- Downpayment Assistance — Downpayment loans are forgiven over a certain period, such as five years. The money doesn’t have to be repaid as long as the borrower still owns and lives in the home at the end of the period.
- Housing Vouchers
- Minority Business Development Assistance
This bill will be particularly meaningful for lower-income households, millennials, and households of color. It ensures stable, affordable housing for millions of Americans and will enable Americans to improve and/or preserve over 1 million existing homes. Americans often have a distinct and very real fear when it comes to home ownership. This legislation can reach many in need. Industry professionals laud the inclusion of affordable housing provisions in the final bill.
The National Low Income Housing Coalition published an article which describes specifics of the legislation and urged support of the legislation. “We are one step closer to achieving historic housing investments and keeping the country’s lowest-income people affordably housed, but we’re not done yet. We’re urging all members of congress to enact this legislation as soon as possible” said NLIHC president and CEO Diane Yentel.
For more information on the Build Back Better legislation, you can visit WhiteHouse.gov.