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Housing Proposals in the Biden-Harris Administration FY 2025 Budget Request Could Finance up to 2 Million Affordable Homes

Thursday, March 7, 2024 - 9:51AM

The Biden-Harris Administration today published a fact sheet highlighting some of the housing proposals that will be included in its forthcoming fiscal year (FY) 2025 budget request, which President Joe Biden is expected to preview in his State of the Union address tonight before the budget proposal’s scheduled full release March 11.
Similar to last year’s budget request, the FY 2025 budget request is expected to include proposed enhancements to the low-income housing tax credit (LIHTC) and to tax-exempt private activity bonds; the establishment of a Neighborhood Homes Tax Credit to cover the gap between the construction cost and sales price for rehabilitated or newly built single-family homes in distressed communities; and several new proposals to support and incentivize affordable rental housing development and rehabilitation, including a new $20 billion multifamily financing incentive called the Innovation Fund for Housing Expansion and a proposal to increase the Federal Home Loan Banks’ Affordable Housing Program contributions.
If these proposals are enacted, Novogradac estimates it is likely that the total net addition would be at least 2 million homes constructed or preserved between 2025-2034. Read more about what these provisions are expected to entail and what they could mean for affordable rental housing in this Notes from Novogradac blog post.

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