On Friday, Democratic presidential candidate Vice President Kamala Harris announced the framework of her economic agenda and called for the construction of 3 million new homes in the next four years. The announcement included proposals to support renters, new homeowners and increase housing supply. The proposals, many of which are an expansion of efforts by the current Biden – Harris administration include:
- “A Historic Expansion of the Existing Tax Incentive for Businesses That Build Rental Housing that is Affordable” – NYHC believes this refers to the Low-Income Housing Tax Credit and provisions to restore the 12.5 percent increase to the 9 percent LIHTC and lower the 50 percent bond-financing requirement for 4 percent LIHTC, which the administration has strongly supported.
- New Tax Incentive to Build Starter Homes that are sold to first-time homebuyers.
- $40 billion Innovation Fund to empower local governments to fund local solutions to build housing, including innovative methods of construction financing. This would double the Biden-Harris Administration proposal for a $20 billion innovation fund.
- Cut Red Tape and Bureaucracy by streamlining permitting processes and reviews, including for transit-oriented and conversion development.
- Calls on Congress to pass the Stop Predatory Investing Act, to remove key tax benefits for major investors who acquire large numbers of single-family rental homes.
- Provide $25,000 Down-Payment Support for First-Time Homeowners – This expands the down-payment assistance proposal by the administration from just first-generation home buyers to all first-time home buyers.
- Vice President Harris said she would continue the current administration’s efforts to expand rental assistance, increase supply for those experiencing homelessness and enforce fair housing laws. She also said she would take action to make certain federal lands eligible to be repurposed for new housing developments affordable to families.