The Biden administration announced an USD 85 million funding package under the Pathways to Removing Obstacles (PRO) to Housing program to aid 21 state and local governments in removing barriers to affordable housing development. The initiative aims to update housing plans, revise land use policies, and streamline permitting processes. Vice President Kamala Harris and Acting HUD Secretary Adrianne Todman emphasized that this effort is part of a broader strategy to lower rents and increase homeownership. Additional funds and legislative proposals, including a tax credit for first-time homebuyers, are also part of the administration's comprehensive approach to tackling the housing crisis.
To address the rising housing costs in the United States, the Biden administration has announced an USD 85 million funding package aimed at removing barriers to affordable housing development. This initiative, known as the Pathways to Removing Obstacles (PRO) to Housing program, will benefit 21 state and local governments across the country.
Vice President Kamala Harris and Acting Secretary of the Department of Housing and Urban Development (HUD), Adrianne Todman, highlighted the goals of the PRO Housing program. The funds are intended to help local governments update housing plans, revise land use policies, and streamline the permitting process for new developments. This announcement aligns with the administration's ongoing efforts to tackle high housing costs, a pressing issue for many Americans, particularly younger voters.
The shortage of housing has been a persistent problem, driving up rental prices and contributing to inflation. This inflationary pressure has also influenced the Federal Reserve's stance on interest rates, delaying potential cuts. Vice President Harris emphasized the broader strategy behind this investment, stating, "This is part of a larger effort to lower rents and help more Americans buy homes." The administration's national housing plan aims to build 2 million affordable housing units.
In addition to the HUD grants, U.S. Treasury Secretary Janet Yellen announced a new initiative diverting USD 100 million in revenue from COVID-era community lending investments to an affordable housing financing fund. This fund is designed to further support the development of affordable housing units across the country.
Specific allocations of the PRO Housing funds include USD 10 million for Los Angeles County, USD 6.6 million for the state of Hawaii, and USD 2.5 million for Ketchum, Idaho. Milwaukee will receive USD 2.1 million to provide subsidies to builders for developing vacant lots and abandoned buildings, while Denver will use a USD 4.5 million grant to offer low-cost loans to housing developers for utility connections.
The response to the PRO Housing program has been substantial, with over 175 communities applying for funds. The Biden administration plans to release an additional USD 100 million in grants later this summer and has requested another USD 100 million in the proposed budget for the 2025 fiscal year, beginning October 1.
Moreover, Vice President Harris and Secretary Yellen have urged Congress to pass two significant proposals from President Biden: a USD 10,000 tax credit for first-time homebuyers and a USD 25,000 equity grant for first-generation homebuyers from disadvantaged families. These proposals have faced challenges in the Republican-controlled House of Representatives.
The administration's efforts underscore the urgent need to address the housing crisis, which affects millions of Americans. By removing obstacles to development and providing financial support, the Biden administration aims to create more affordable housing options and alleviate the financial burden on families struggling with high housing costs.
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