Harris proposes 3 million new homes, $25K in down payment assistance
Image courtesy of Wake Technical Community College on Flickr
Vice President Kamala Harris last week released several proposals to lower housing costs for Americans if elected. During a speech in North Carolina on Friday, Harris outlined her plans to construct three million new housing units, expand tax incentives for developers who build affordable rentals, encourage the construction of starter homes for first-time homebuyers, and provide $25,000 in down-payment assistance for first-time buyers.
“As president, I will work in partnership with industry to build the housing we need, both to rent and to buy. We will take down barriers and cut red tape, including at the state and local levels,” Harris said.
“And by the end of my first term, we will end America’s housing shortage by building 3 million new homes and rentals that are affordable for the middle class, and we will do that together.”
As part of the plan, the Harris-Walz administration will focus on accelerating the creation of new homes to address the current housing shortage that has driven up rent and mortgage prices.
Harris said her administration would expand existing tax incentives to encourage developers to build affordable rental housing and establish a new $40 billion innovation fund, doubling the fund proposed by the Biden-Harris administration.
The federal fund would give local governments the financial resources needed to find housing solutions. The fund would go beyond traditional housing projects by providing diverse types of construction financing, empowering developers and homebuilders to design and construct innovative affordable rental housing.
The administration would propose the first-ever tax incentive for developers who build starter homes that are sold to first-time homebuyers.
The plan also includes $25,000 in down-payment support for first-time homeowners who have consistently paid their rent on time for at least two years, including first-generation homeowners.
Initially, the Biden-Harris administration had proposed these funds specifically for 400,000 first-generation homebuyers, along with a $10,000 tax credit for first-time buyers. However, the expanded plan offers $25,000 to all eligible first-time homebuyers.
“We also know that as the price of housing has gone up, the size of down payments have gone up as well,” Harris said. “Even if aspiring homeowners save for years, it often still is not enough.”
“So, in addition, while we work on the housing shortage, my administration will provide first-time homebuyers with $25,000 to help with the down payment on a new home.”
The vice president said she will continue the Biden-Harris administration’s efforts to cut red tape and address bureaucratic obstacles that often delay housing projects. This includes streamlining permitting processes and expediting reviews, allowing developers to get homes on the market quicker, and bringing down costs.
Harris is also calling upon Congress to pass the “Stop Predatory Investing Act,” a piece of legislation designed to eliminate select tax benefits that reward major investors who buy up large quantities of single-family rental homes.
The vice president is advocating for Congress to pass the “Preventing the Algorithmic Facilitation of Rental Housing Cartels Act,” which will crack down on corporate landlords who use private equity-backed price-setting tools to dramatically hike rent prices in areas across the nation.
Plus, Harris has echoed a proposal from President Joe Biden to cap rent hikes at 5 percent each year for apartments owned by corporate landlords. The plan would apply to landlords who own more than 50 units in their portfolio, covering about 20 million units nationwide, or half of all rentals. The proposal marks the first time a sitting president has supported rent control since the 1970s.
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