President Biden Outlines 2024 Budget
This week, President Biden released his proposed budget for Fiscal Year 2024 (FY24), including more than $175 billion to expand the housing supply, improve access to affordable rental options and homeownership, lower housing costs and advance efforts to end homelessness.
To preserve and increase housing supply while lowering costs, the Budget includes:
- $28 billion to expand LIHTC to boost the supply of housing that is affordable for low-income renters. Specifically, the Budget would permanently increases the allocation of tax credit states receive. It also reduces the private activity bond financing requirement from 50 percent to 25 percent in order to leverage more private capital into LIHTC deals and build more units of affordable housing. And it repeals the qualified contract provision and right of first refusal provision – both of which allowed some owners of LIHTC units to exit requirements to keep rents at affordable levels.
- $7.5 billion in mandatory funding for new PBRA contracts.
- Provides $1.8 billion for the HOME Investment Partnerships Program (HOME), an increase of $300 million over the 2023 enacted level, to construct and rehabilitate affordable rental housing and provide homeownership opportunities. In addition, it would also provide $258 million to support 2,200 units of new permanently affordable housing specifically for the elderly and persons with disabilities, supporting the Administration’s priority to maximize independent living for people with disabilities.
- $10 billion for planning and housing capital grants to incentivize State and local jurisdictions to expand supply and increase housing choice by reducing barriers to the development of affordable housing. The grants will help jurisdictions identify and remove barriers to affordable housing in their communities, such as restrictive zoning and burdensome permitting processes.
- The Budget would also increase funding by $283 million above the 2023 enacted level for USDA’s multifamily housing programs. This would allow the Biden Administration to reduce rent burdens for low-income borrowers while also increasing the resiliency of rural housing to the impacts of climate change through a proposal to require energy and water efficiency improvements and green features in housing construction.
The President’s budget request is the first step in the annual appropriations process. Using the budget request as a foundation, the House of Representatives and the Senate will begin to develop their own budget resolutions and appropriations packages in the coming weeks and months. A more detailed analysis will be provided in next week’s Washington Update.
To view a statement by Secretary Fudge on the proposed budget, click here.