White House Previews Housing Investment Proposals with Significant Increases for the Housing Credit, HOME, and Housing Trust Fund

Today, the White House released a fact sheet providing further detail on the housing investments it is proposing in the American Jobs Plan. In total, the administration is proposing $213 billion in direct housing funding and more than $100 billion in new and expanded tax credits to modernize existing and produce more than two million affordable and sustainable homes. The proposals include significant investments in NCSHA’s top housing priorities, including the Housing Credit, HOME, and Housing Trust Fund, and enactment of the Neighborhood Homes Investment Act. Proposed funding details follow:

• $55 billion for the Housing Credit, with a focus on increasing production in high-opportunity neighborhoods;
• $35 billion for the HOME program;
• $45 billion for the Housing Trust Fund;
• $12 billion for the Capital Magnet Fund;
• $2 billion for new project-based rental assistance agreements — the first new agreements in 20 years;
• Enactment of a new federal tax credit, based on the Neighborhood Homes Investment Act, to support new construction or substantial rehabilitation of owner-occupied homes;
• $40 billion for the Public Housing Capital Fund;
• $3 billion to fund the inspection and removal of lead-based paint from 175,000 homes;
• $5 billion for an incentive program to encourage the removal of exclusionary zoning and harmful land use policies;
• $2 billion to build and rehabilitate rural housing, using the Section 502 and Section 504 programs;
• $2 billion for the Section 202 housing for the elderly program;
• $2 billion for expanding development and rehabilitation of housing in Indian Country;
• $2 billion for a new Community Development Block Grant program for resiliency activities in communities vulnerable to climate change;
• $17.5 billion for the Department of Energy’s Weatherization Assistance program;
• $500 million in grants and low-interest loans to renovate multifamily housing to make it more energy efficient and resilient;
• $10 billion for a consumer electrification rebate program;
• $250 million for a new Main Street Revitalization Program to renovate small towns’ downtown business districts, including adding affordable housing; and
• $10 billion for community-led redevelopment projects to provide shared amenities, new economic activity, and services.

More information on these proposals is expected later this week when the administration publishes its FY 2022 budget and “Green Book” on tax proposals.