By Andrea Shalal
WASHINGTON (Reuters) – The Biden administration on Thursday continued its push to drive down housing prices, announcing steps to reduce zoning and land-use restrictions that often constrain housing construction, especially in low-income areas, and better protect renters.
The moves, which will also expand financing for affordable, energy efficient and resilient housing and promote commercial-to-residential conversion opportunities, are part of a big White House push to boost the supply of affordable housing.
Inflation in rental markets is decelerating, and data show more apartments will be built this year than any year on record, but housing prices remain high across the country.
“Today’s actions … are a down payment on the historic housing investments proposed in the president’s budget that would boost supply, lower costs and cut dangerous climate pollution, promote homeownership, protect renters, and promote fair housing,” the White House said in a statement.
High housing costs and increased homelessness in cities have caused strife in communities across the country, and could be a salient factor in the 2024 presidential election, in which U.S. President Joe Biden is seeking a second term.
The White House last week announced plans with the Department of Housing and Urban Development (HUD) to reduce or eliminate high application charges for renters and other so-called junk fees that can jack up consumers’ costs by 20%.
On Thursday, it shifted focus to zoning regulations that limit where, and how densely, housing can be built – steps that have limited housing supply, perpetuated historical patterns of segregation, and increased energy costs and climate risk.
“Today, we are acting to increase the supply of affordable housing, which is crucial to lowering housing costs,” Housing and Urban Development Secretary Marcia Fudge said.
As part of Thursday’s actions, HUD announced a new $85 million program to help communities identify and remove barriers to affordable housing production and preservation. Communities with acute needs can apply for up to $10 million in funding.
The money could enable a shift to higher-density zoning and rezoning for multifamily and mixed-use housing, while reducing requirements related to parking and other land use restrictions, the White House said.
The actions come after the U.S. Department of Transportation said it would provide up to $3.16 billion for planning and capital construction projects that prioritize disadvantaged communities and improve access to daily destinations.
The Economic Development Administration (EDA) has also updated the guidelines for grants to emphasize efficient land use and concentrate new developments in areas that are accessible to nearby residential density.
Other measures focused on simplifying underwriting for larger multifamily housing loans and streamlining financing for creation of affordable housing.
The administration will also work to leverage federal funds to support commercial-to-resident conversions, and is setting up a new interagency working group to lead that effort.
Such conversions could also help create zero-emissions housing, which will reduce energy costs for residents and cut dangerous climate pollution, the White House said.
The White House also announced plans HUD to boost protections for renters, including ensuring that renters have an opportunity to address incorrect tenant screening reports and get fair notice in advance of any eviction.
HUD will also provide new funding to tenant organizing efforts, the White House said.
(Reporting by Andrea Shalal; Editing by Conor Humphries)
