To boost affordable housing Biden administration acts to put together rescue plan

American President Joe Biden spoke about the worst inflationary pressure the county has seen in 40 years and the ways to be found to decimate it will be of top most priority heading into the midterms.

Meanwhile, the mortgage rates as well as the housing prices have hit an all-time high in the country.

In Biden administration is set to announce an action plan to help close the affordable housing gap and “ease the burden of housing costs,” CNN reports. One of the steps is leveraging existing federal funding to encourage state and local reform to zoning and land use policies via funding from the bipartisan infrastructure law and the Department of Transportation. There is plan to improve federal financing mechanisms for manufactured housing, multifamily housing and the construction and rehabilitation of single-family homes.

Other plans in sight are as follows:

• The Biden administration will direct the supply of affordable housing for owner-occupants, which addresses “the growing trend of large institutional investor purchases of single-family homes.”
• Working with the private sector to address supply chain challenges and improve building techniques to finish construction in 2022 on the most new homes in any year since 2006.
• Take steps to finance or produce more manufactured housing, accessory dwelling units — also known as garage apartments, basement apartments or backyard homes — 2-4 unit properties, and smaller multifamily buildings

Excerpt from CNN:

White House Announcement in a fact sheet quoted, “The plan’s policies to boost supply are an important element of bringing homeownership within reach for Americans who, today, cannot find an affordable home because there are too few homes for sale in their communities. And it will help reduce price pressures in the economy, as housing costs make up about one-third of the market basket for inflation, as measured by the Consumer Price Index,”

In the overall plan, there will be legislative moves that will need the approval of Congress. If passed, they include tax credits for low- and middle-income home buyers and a proposed $25 billion for grants for affordable housing production.

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