President Biden has some big plans to help low-income renters, potential homeowners, and homebuyers. He recently released his proposed 2024 budget, which includes a 1.6% increase in the Department of Housing and Urban Development’s budget, bringing its funding to $73.3 billion. This budget prioritizes helping lower-income renters, increasing the supply of affordable housing, and helping underserved communities become homeowners. It also aims to end homelessness and address housing discrimination.
One of the key points of this budget is the increase in funding for housing vouchers, which are used by 2.3 million low-income families who rent their homes. The administration expects that an additional $2.4 billion will expand access to an additional 200,000 new families, including those facing homelessness, youth aging out of foster care, and low-income veterans.
More money would also be set aside for eviction prevention, including emergency rental assistance and legal assistance for those at risk of losing their homes. Biden is also focused on building and rehabbing affordable rentals and homes for sale, including creating more reasonably priced homes for tribal communities and modernizing the nation’s public housing.
The budget also aims to expand opportunities for homeownership, including creating a down payment assistance program for first-generation homebuyers from communities of color. The Federal Housing Administration’s recent announcement to reduce mortgage insurance premiums by a third is expected to save FHA borrowers about $800 in their first year of homeownership.
While some are skeptical about the impact of additional funding, Biden’s proposed budget has the potential to make a significant difference in the lives of low-income renters and potential homeowners. However, as with any policy proposal, there are differing opinions. Ed Pinto, director of the American Enterprise Institute’s Housing Center, believes that the budget is doubling down on failed federal housing policy and that the money ends up being siphoned off by builders, government agencies, and nonprofits. He also believes that the reduction in FHA premiums may ironically lead to less affordability for potential homeowners by increasing demand and driving up prices.
Overall, Biden’s proposed budget is an important step in increasing access to affordable housing for low-income renters and potential homeowners, and it will be interesting to see how it progresses in the coming months. Don’t forget to use the hashtags #affordability, #discrimination, #fairhousingact, #housingdiscrimination, #housingmarket, #housingvouchers, #JoeBiden, #politics, #president, #publichousing, #renters and #thealexalvarezrealtor if you’re sharing this on social media!
