New Federal Plan Aims to Jumpstart Construction

The Biden administration recognizes that the best way out of the current housing crisis is to bolster supply through additional construction. In order to meet this goal, the new Housing Supply Action Plan was recently unveiled in a White House press release. The five-part plan is expected to solve the crisis within five years, and mostly addresses issues of financing.

The first part of the plan is aimed at directly assisting builders with increased resources and new programs. The plan also modifies federal grant prioritizations based on a new system of scoring for zoning and land use reform. Additional financing options will be provided for manufactured housing, ADUs, and smaller multifamily properties. In addition to new financing options, the plan expands existing Fannie Mae financing programs. The last part of the plan is unrelated to financing or construction; it prevents institutional investors from purchasing REO properties in favor of allowing them to be purchased by owners intending to occupy the property.

Photo by Kevin Grieve on Unsplash

More: https://journal.firsttuesday.us/white-house-addresses-the-housing-crisis-with-a-new-plan/84640/

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