As part of a larger initiative to battle inflation for Americans, the White House presented, on Monday, a proposal.
This proposal is to increase the supply of housing and cut costs for renters, as well as homeowners. The idea was portrayed as being part of a larger effort.
Housing Supply Action Plan
The government put out a “Housing Supply Action Plan,” which is supposed to increase the number of homes bought at reasonable prices and the number of available homes.
This is supposed to happen within the next five years.
“White House releases plan to boost housing supply”
Lower rents are part of the plan.
Does this mean that the reason these big corporations bought up all of these homes is to get contracts with the Govt for rent subsidies? 🧐https://t.co/D601e6I31q
— Farrukh Shamsi (@farrukh_shamsi) May 16, 2022
Narrowing the gap “will mean more reasonably priced rents and more attainable house ownership for Americans in every neighborhood,” the White House said in an overview of the plan.
Utilizing new financing frameworks to build and preserve more accommodation in areas where there are, as of now, financing gaps is one of the measures outlined as part of the plan.
Another measure is expanding federal funding by making specific loans more broadly accessible for multifamily developments. Both of these measures are included in the plan.
The plan also includes measures to ensure housing owned by the government is transferred to owners who will live in the residences or to nonprofit organizations that will rehab the buildings.
This is done so big investment firms can’t buy the homes, which could lead to the homes being ignored.
Today, President Biden announces a Housing Supply Action Plan to help close the housing supply gap in 5 years.
— Diane Yentel (@dianeyentel) May 16, 2022
The administration also stated it will collaborate with businesses in the private sector to address problems in the supply chain that impede the building industry.
This comes with the end objective of completing construction on more newly built homes this year than in any year since 2006.
The Unlocking Possibilities Program
The proposal contains a rallying cry for Congress.
The White House asked Congress to approve President Biden’s Unlocking Possibilities Program, which had already been approved by the House of Representatives the year before.
This would create a new grant program with a budget of $1.75 billion that would be run by the Department of Housing and Urban Development (HUD).
The White House also asked Congress to approve President Biden’s budget request for 2023, which includes a recommendation for $10 billion in HUD grants to expand the availability of affordable housing.
This request was included in the White House’s statement.
The housing supply proposal was announced at the same time as the White House gave a multitude of recommendations to reduce growing expenses.
These rising costs have slowed down President Biden’s plans and helped explain why his approval ratings have been flat for months.
In yet another effort to lessen the burden placed on homeowners, the administration made the announcement one month ago that it would transfer millions of dollars to the states to help offset the high price of residential energy.