Summary List Placement
Joe Biden has been elected the 46th president of the United States. And as he approaches taking office on January 20, his policy proposals loom.
For the real-estate industry, big changes lie ahead, his housing plan suggests.
Biden’s stated goals — which include implementing a $15,000 tax credit for first-time homebuyers and closing the racial wealth gap in housing — affect all socioeconomic classes.
Ultrawealthy real-estate investors, middle-class homeowners, renters in underserved communities, and everyone in between are all poised to have their lives changed by a Biden administration.
His impact, however, will ultimately depend on whether he can gain congressional approval for his ambitious — at times controversial — proposals. A split government, with a Democrat-leaning House of Representatives and a Senate where Republicans hold a slim majority, makes it unclear whether Biden’s most ambitious legislation would definitely become law after he is sworn in.
Here are the different stakeholders a Biden presidency would affect, and how each of the president-elect’s policies are likely to play out for each.
People who want to buy a home
Biden has called for a tax break that would encourage Americans with modest means or middle-class roots to purchase a home. To that end, he has proposed a tax credit for first-time homebuyers of up to $15,000, which would be subject to congressional approval.
“The $15,000 tax credit for first-time homebuyers is necessary, since there are many young people ready to invest,” said Cecilia Serrano, a broker at Warburg Realty in New York City. “It is a way to energize the economy.”
What if you already own a home, or don’t own one just yet? You’re in luck: Another focus of Biden’s housing initiative is increased protections for homeowners and renters.
According to his website, Biden plans to ramp up housing benefits for first responders, public-school teachers, law-enforcement officers, firefighters, and other public and national service workers who live in lower-income communities or work in markets where there are low inventories of affordable homes.
To do this, he would expand the Good Neighbor Next Door program, an initiative from the federal department of Housing and Urban Development that offers employees in these fields discounts on homes in certain “revitalization areas” (of up to 50% off the listing price, with down payments as low as $100). Only certain properties qualify, and it has to serve as the beneficiary’s primary residence for a minimum of 36 months.
When a version of the Good Neighbor Next Door launched in September 2019 in Fayetteville, North Carolina, local police chief Gina Hawkins said it would help her attract employees. “I am definitely using this, and appreciate this opportunity for my officers,” Hawkins told the Fayetteville Observer.
Low-income individuals and communities in need
A significant portion of the Biden campaign’s housing plan is dedicated to the expansion of affordable, accessible housing.
Americans are faced with an acute shortage of affordable homes, according to a March 2019 report by the National Low Income Housing Coalition. Researchers at the Joint Center for Housing Studies of Harvard …read more
Source:: Businessinsider – Politics