Housing affordability is front and center in the policy agenda of Democratic Presidential Nominee Kamala Harris. With a clear focus on increasing the supply of homes, Harris has unveiled a comprehensive framework that, if elected, will aim to boost housing construction through strategic tax incentives.
The proposed framework introduces three key tax incentives designed to catalyze the construction of affordable housing:
Starter Home Credit for First-Time Homebuyers: A new tax credit aimed at developers who build affordable starter homes, making it easier for first-time buyers to enter the housing market.
Expansion of the Low-Income Housing Tax Credit (LIHTC): This expansion is intended to encourage the construction of more affordable apartment units, a move that is expected to significantly increase the availability of rental housing options.
Neighborhood Homes Investment Act - Neighborhood Homes Tax Credit: This tax credit is designed to spur revitalization in neighborhoods by incentivizing the development of homes in areas that have been historically underserved.
In addition to these tax incentives, Harris’s plan includes the establishment of a $40 billion fund to help ease local barriers, such as exclusionary zoning, that often hinder housing development. Notably, the proposal does not include a cap on rents, a measure that was recently proposed by the Biden Administration.
At Olive Hill CEDC, we recognize the importance of such initiatives in addressing the housing affordability crisis. We have long supported the expansion of LIHTC and the introduction of the Neighborhood Homes Tax Credit, both of which are crucial in making affordable housing more accessible to communities across the country.
As this policy unfolds, we will continue to advocate for measures that benefit underserved communities and ensure that affordable housing remains a priority on the national stage.
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