Page 14 - Builder Brief December 2021 Issue

GOVERNMENT AFFAIRS
U.S. HOUSE APPROVES BUILD BACK BETTER ACT; NAHB OPPOSES BILL
The House today narrowly approved the Build Back Better Act, legislation that contains positive housing provisions but also includes other elements detrimental to the residential construction sector that caused NAHB to oppose the overall package.
In letter sent to House leaders prior to the vote, NAHB said: “While this bill represents an historic investment in our nation’s housing, NAHB is concerned the tax increases, new building and energy code requirements and increased fines and penalties for OSHA violations would be detrimental to the housing industry during a critical phase in our nation’s economic recovery.”
The Good
As noted above, the Build Back Better Act includes several provisions that are good for housing. Of particular benefit to the housing industry is the $150 billion in new funding that will support the creation and renovation of affordable housing across the country. The legislation would:
Homeownership Investments
• Establish a new first-time, first-generation down
payment assistance program for home buyers;
• Create a new home loan program to subsidize 20- year mortgages for first-generation home buyers;
• Fund a new HUD demonstration program to help expand small-dollar lending options for home buyers; and
• Greatly expand funding for the USDA Section 504 program to help low-income home owners in rural areas repair, upgrade, and preserve affordable homes.
Housing Appropriations
• Provide $10 billion for the Home Investment Partnerships (HOME) program. This grant program has traditionally been used as gap financing in conjunction with other programs like Project Based Section 8 or the Low-Income Housing Tax Credit;
• Deliver $1 billion for the Project-Based Section 8 program (PBS8) For the first time in years, this will allow for new contracts under PBS8 — which is a big win for the membership; and
• Earmark $3 billion for the Community Development Block Grant (CDBG) program. This program has traditionally funded needs such as infrastructure, community centers and housing renovation — but not new construction. This package specifically states that new construction is now an approved use of CDBG funds.
Zoning and Education
• Address local zoning reform that will encourage
the streamlining of new construction;
• Invest in career and technical education, including programs such as Jobs Corps and YouthBuild;
Taxes
• Increase funding for the Low-Income Housing Tax Credit (LIHTC), although the bill fails to take full advantage of this historic opportunity to further strengthen the program by leaving out many of the LIHTC provisions initially included in the House Ways and Means Committee draft;
• Provide relief for taxpayers affected by the current limit on state and local tax deductions, known as SALT; and
• Provide long-term extensions many of the existing energy tax incentives, although NAHB opposes the structural changes made to the 45L new energy efficient home tax credit.
14 DECEMBER 2021 | GREATER SAN ANTONIO BUILDERS ASSOCIATION