Here’s where housing funds stand in Biden’s slimmed-down spending bill

New framework cuts funding for rental assistance, affordable housing by more than half

National /
Oct.October 28, 2021 03:03 PM
Here’s where housing funds stand in Biden’s slimmed-down spending bill
Joe Biden, Charles Schumer, and Nancy Pelosi (Wikipedia)

As Democrats tangle over the details of the Build Back Better reconciliation bill, its housing funding has been on the chopping block for weeks. Now, a clearer picture of the measure’s possible haircut is starting to emerge.

President Joe Biden on Thursday laid out a new $1.75 trillion framework, shrinking the proposed spending plan from $3.5 trillion. In the latest iteration, $150 billion is dedicated to housing, down from $330 billion. The plan includes a 15 percent tax on large corporations, but does not include a new billionaires’ tax.

The president is hopeful that the amended plan will appease the moderates in his party, potentially paving the way for approval of a separate $1.2 trillion infrastructure bill.

The larger bill, released by the House Rules Committee, includes $25 billion for rental assistance, a majority of which is dedicated to the federal housing choice voucher program along with roughly $1 billion for project-based rental assistance. Lawmakers had previously considered $90 billion in assistance, with $75 billion for vouchers and $15 billion for project-based assistance.

The measure also calls for $15 billion for the Housing Trust Fund, less than half of the $37 billion originally pitched. The new allocation would help ​​build and preserve more than 150,000 homes for extremely low-income households, according to the National Low Income Housing Coalition. The original allocation would have created or preserved twice as many units.

Still, these amounts represent historic-levels of investment, if approved.

“We are one step closer to achieving historic housing investments and keeping the country’s lowest-income people affordably housed, but we’re not done yet,” NLIHC president and CEO Diane Yentel said in a statement. “We’re urging all members of Congress to enact this legislation as soon as possible.”

Meanwhile, the bill allocates $65 billion to public housing. The president’s initial plan called for a $40 billion investment, which was subsequently raised to $80 billion amid calls for more funding from Senate Majority Leader Charles Schumer and other elected officials. The New York City Housing Authority’s backlog in capital needs alone is estimated to be $40 billion.

The measure also includes $1.75 billion for the “Unlocking Possibilities Program,” which would provide grants to localities that, among other requirements, enact zoning or policies that “reduce barriers to housing supply elasticity and affordability” and craft housing plans that curb segregation and displacement. Funding for the program was previously pegged at nearly $5 billion.





    Related Articles

    arrow_forward_ios
    Biden taps Mapleton’s Nathanson as Norway ambassador
    Biden taps Mapleton’s Nathanson as Norway ambassador
    Biden taps Mapleton’s Nathanson as Norway ambassador
    Rendering of project at 12826 Philadelphia Street (City of Whittier, iStock)
    OC developer eyes Uptown Whittier for 52-unit apartment complex
    OC developer eyes Uptown Whittier for 52-unit apartment complex
    IGP Business Group's Matt Ilbak and Moreno Valley Mall (IPG Business Group, Moreno Valley Mall)
    Indoor mall in Moreno Valley up for mixed-use makeover
    Indoor mall in Moreno Valley up for mixed-use makeover
    BentallGreenOak Sonny Kalsi and Stream Realty's Lee Belland and Mike McVean with 10380 Alder Avenue (LinkedIn, Stream Realty Partners, LoopNet)
    Newly built Inland Empire warehouse fetches $83M
    Newly built Inland Empire warehouse fetches $83M
    Haim “Milo” Revah and the property at 705 N. Alta Drive in Beverley Hills (Redfin, Getty)
    Foreclosed Beverly Flats home listed for $22M
    Foreclosed Beverly Flats home listed for $22M
    CIM Group’s Shaul Kuba with renderings of the project at 6007 Sunset Blvd in Hollywood (Cim Group, Getty)
    CIM clears hurdle toward building 109-unit complex in Hollywood
    CIM clears hurdle toward building 109-unit complex in Hollywood
    Michael Shabani with 8400 Melrose Avenue (Google Maps, iStock) Gucci, Melrose
    Gucci plans flagship at Melrose & Melrose
    Gucci plans flagship at Melrose & Melrose
    Argent Retail's Terence Bortnick (LinkedIn, iStock)
    OC commercial brokerage Argent Retail Advisors files for bankruptcy
    OC commercial brokerage Argent Retail Advisors files for bankruptcy
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...