By Alexa Moreno Perdomo
Yesterday, after weeks of build up and rumors, President Biden announced his new jobs and infrastructure plan called the American Jobs Plan, which specified funds that directly affect the housing industry.
The new plan stipulated $213 billion in fund housing projects, with a focus on low- and middle-income housing. The plan calls for the construction, as well as rehabilitation, of over 500,000 homes. With the funds, the plan estimates about two million homes and commercial buildings will be built over the span of 10 years.
Beyond construction and remodeling, the plan also called for the elimination of exclusionary zoning laws. These laws have been known to cause inflated housing costs and construction costs for home builders.
The American Rescue Plan hopes to distribute the funding for these housing projects through block grants, which grant federal funds to state and local governments to tackle specific problems in their communities. In addition, the plan calls for tax credits for home and commercial to be extended and expanded specifically through the Weatherization Assistance Program.
While this plan could help continue the heat that the housing market and home building industry have been experiencing this past year, the plan has a few obstacles to face.
According to an article by Tim Glaze for Housing Wire, “The plan could see months of roadblocks, especially considering the Biden Administration intends to fund the spending by raising the corporate tax rate from 21% to 28%, an effort sure to meet Republican resistance. Combined with measures designed to stop offshoring of profits, the White House said the tax hike would fund the entire plan within 15 years.”
The plan must now pass through the House and Senate.