Could the Biden Administration’s plans help you buy a home?
Becoming a homeowner has pros and cons, but one thing is clear: Homeowners generally have a higher net worth than renters. For many people, owning a home is also a life dream because they feel it helps them establish a sense of permanence and set down roots.
President Joe Biden recognizes the importance of homeownership for people across the country. In fact, on June 1, he issued a Proclamation on National Homeownership Month, stating, “For millions of Americans, homeownership is the cornerstone of a life with security, with dignity, and with hope.”
Biden also recognizes the challenges that far too many Americans face in purchasing a house, noting that ” the dream of homeownership is becoming more difficult to realize and sustain.”
In an effort to help make the dream of owning a home a reality for more people, the Biden Administration has put forth a number of proposals. These could make a real difference in overcoming barriers to property ownership. Here are three of the proposals.
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1. Developing more affordable housing
Biden has proposed several initiatives aimed at encouraging construction of reasonably priced homes that everyday Americans can afford. Some of those initiatives include:
- A Neighborhood Homes Tax Credit designed to encourage investments in the construction or rehabilitation of affordable homes.
- An Unlocking Possibilities Program, which provides financial incentives to encourage communities to eliminate barriers to the construction of properties for low-income Americans. These barriers include zoning laws, such as those requiring minimum lot sizes, which tend to make constructing affordable housing more difficult.
The American Jobs Plan also earmarks $35 billion for the HOME Investment Partnership Program, which provides funding to states and localities that fund the construction or rehabilitation of low-cost properties for sale or rent.
In many parts of the country, a red-hot housing market has led to a shortage of homes for sale and sent prices skyrocketing. Biden’s initiatives, designed to encourage the construction or rehabilitation of low-cost properties, could have a huge impact on allowing more people to purchase properties of their own.
2. Temporarily expanding the Good Neighbor Next Door Program
In his Fiscal Year 2022 budget, Biden also proposed $30 million to temporarily expand a government initiative…