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President Joe Biden requested historic funding for housing supply in his federal budget proposal for the fiscal year that begins October 1, 2022. The proposal was released Monday.
A requested 34% increase over last year for the Department of Housing and Urban Development includes $50 billion in grants and loans to increase the supply of affordable housing. This amount includes $32 billion for the Housing Choice Voucher Program and nearly $2 billion in funding for the HOME Investment Partnership to create more affordable homeownership opportunities.
“This unprecedented investment demonstrates how seriously the White House views the supply crisis,” says Shannon McGahn, NAR's chief advocacy officer. “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 landmark report on housing supply, which confirmed a shortage of nearly 6 million residential housing units nationwide. "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," McGahn says.
To close the supply gap, NAR supports new funding for affordable housing construction, preserving and expanding tax incentives to renovate distressed properties, converting unused commercial space to residential, and encouraging and incentivizing zoning reform.
The proposal now moves to Congress.
“A president’s budget is a wish list of policy goals and ambitions,” McGahn explains. “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 is analyzing Biden’s full $5.8 trillion budget request and will have a comprehensive write-up on nar.realtor.