The Chamber approves the Build Better Act; NAHB opposes the bill
The House passed President Joe Biden’s Build Back Better bill, which includes legislation with positive housing provisions. Of particular benefit is the $ 150 billion in new funding that will support the creation and renovation of affordable housing across the country. The package is now headed for the Senate.
NAHB notes that the House bill includes other elements that could be detrimental to the home construction industry. The organization is concerned about tax increases, new building and energy code requirements, and increased fines and penalties for OSHA violations. See below for some additional perks, and visit NAHB Now to learn more.
The legislation :
- Establish a new first generation down payment assistance program for homebuyers;
- Create a new home loan program to subsidize 20-year mortgages for first-generation homebuyers;
- Fund a new HUD demo program to help expand low-cost loan options for homebuyers; and
- Significantly increase funding for the USDA Section 504 program to help low-income homeowners in rural areas repair, upgrade and maintain affordable homes.
- Provide $ 10 billion for the Home Investment Partnerships (HOME) program. This grant program has traditionally been used as gap funding in conjunction with other programs such as Section 8 of the project or the Low Income Housing Tax Credit;
- Providing $ 1 billion for the Section 8 Project-Based Program (PBS8) For the first time in years, this will enable new contracts under PBS8 – which is a big win for members; and
- Allocate $ 3 billion to the Community Development Block Grant (CDBG) program. This program has traditionally funded needs such as infrastructure, community centers and housing renovation, but not new construction. This package specifically states that new construction is now an approved use of CDBG funds.