President Biden Unveils Build Back Better Framework Legislation
On Thursday, President Biden and Congressional leaders released the initial framework for the Build Back Better spending bill. While the framework is subject to possible changes, the current $1.75 trillion bill includes $150 billion for affordable housing spending programs.
According to the White House, the proposed framework will enable the construction, rehabilitation, and improvement of more than 1 million affordable homes, boosting housing supply and reducing price pressures for renters and homeowners. It will address the capital needs of the public housing stock in big cities and rural communities all across America and ensure it is not only safe and habitable but healthier and more energy efficient as well. The bill seeks to provide increased investments in rental assistance, expanding vouchers to hundreds of thousands of additional families. This proposal also seeks to create more equitable communities, through investing in community-led redevelopments projects in historically under-resourced neighborhoods and removing lead paint from hundreds of thousands of homes, as well as by incentivizing state and local zoning reforms that enable more families to reside in higher opportunity neighborhoods.
While the total amount of funding for housing in the BBB agreement is significantly lower than the amount included in the version of the bill passed by the House Financial Services Committee last month, it still includes historic levels of funding for key housing programs. This includes:
- $25 billion for Rental Assistance including $880 million for Project-Based Rental Assistance
- $450 million for Section 202 Supportive Housing for the Elderly
- $450 million for Section 811 Housing for Persons with Disabilities
- $53 billion to support Capital Repairs for Public Housing
- $22.1 billion for Housing Choice Vouchers, with $7.1 billion Targeted to Individuals and Families Experiencing or at Risk of Homelessness and Survivors of Domestic Violence and Human Trafficking
- $9.25 billion for the HOME Investment partnerships Program
- $14.925 billion for the Housing Trust Fund (available through fiscal year 2026)
- $1.685 billion for the Community Development Block Grant program
- $3.425 billion for Lead Paint Removal
- Forgiveness of the National Flood Insurance Program’s Accumulated Debt
The current proposal does not include any investments to expand and strengthen the Low-Income Housing Tax Credit or enact the Neighborhood Homes Credit. However, negotiations remain fluid and there is still a chance that Congress could include these programs in a final draft. The legislation does provide funding for a new Rural Partnership Program that will empower rural regions by providing flexible funding for locally-led projects. The Build Back Better framework will also provide funding for maternal health and establish a new and innovative community violence intervention initiative, in addition to investing in small businesses and preparing the nation for future pandemics and supply chain disruptions.
While it has not yet been determined when Congress will vote on the Build Back Better legislation, House Speaker Nancy Pelosi (D-CA) has said the text currently is still under consideration. In the next couple of weeks, Congressional leaders will seek to reach agreement on the final details of the draft proposal. NAHMA continues to urge members of Congress to strengthen affordable housing programs and resources as they work on finalizing the legislation.
To view the White House Press release, click here. To view the full bill draft text, click here.