The Biden administration unveiled an action plan Monday aimed at easing the burden of housing costs by boosting the supply of quality housing in every community.
The President’s Housing Supply Action Plan includes legislative and administrative actions that aim to help close America’s housing supply shortfall in five years, starting with the creation and preservation of hundreds of thousands of affordable housing units in the next three years.
The Plan will help renters who are struggling with high rental costs, with a particular focus on building and preserving rental housing for low and moderate-income families.
Housing costs make up about one third of of the market basket for inflation, as measured by the Consumer Price Index.
Moody’s Analytics estimates that the shortfall in the housing supply is more than 1.5 million homes nationwide.
Under the Plan, the Biden Administration will reward jurisdictions that have reformed zoning and land-use policies with higher scores in certain federal grant processes.
New financing mechanisms will be deployed to build and preserve more housing where financing gaps currently exist. The action plan will expand and improve existing forms of federal financing.
“In the months ahead, the Administration is committed to working with the private sector to address near-term constraints to supply and production – with the goal of achieving the most completed housing units in a single year in 15 years,” the White House said in a statement.
The Biden Administration is partnering with the private sector to address supply chain disruptions for building materials, and promoting modular, panelized, and manufactured housing – and construction R&D.
Secretary of Housing and Urban Development Marcia Louise Fudge, Secretary of Commerce Gina Raimondo, and other Administration leaders will meet with representatives from the building industry to explore additional actions that the federal government and the private sector can take in partnership to help turn the record number of homes under construction into completed homes where Americans can live.
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