National Housing Emergency: 20 Federal Actions to Fix Housing Affordability in America
Bob Engel
As a real estate professional with over thirty-five years of national real estate experience, Bob has the strong industry knowledge rarely found in re...
As a real estate professional with over thirty-five years of national real estate experience, Bob has the strong industry knowledge rarely found in re...
Part I: 10 Federal Actions to Empower Consumer Homeownership
1. National Down Payment Assistance
Expand federal down payment grants or forgivable loans to help first-time buyers cross the most difficult barrier to ownership.
2. Federally Subsidized Mortgage Rate Buydowns
Offer government-backed interest rate buydowns that reduce monthly payments and restore affordability for working families.
3. Expanded FHA and VA Loan Programs
Reduce insurance premiums, raise loan caps, and streamline approvals to make these programs even more accessible to first-time and veteran buyers.
4. Credit Score Flexibility with Federal Guarantees
Count consistent rental payment history as a qualifying factor, helping responsible renters qualify for mortgages.
5. Emergency First-Time Homebuyer Tax Credit
Reintroduce and expand the homebuyer tax credit, giving buyers immediate financial relief at closing.
6. Federal Overrides of Restrictive Zoning
Empower emergency federal zoning overrides to fast-track the construction of affordable starter homes and townhomes.
7. Caps on Closing Costs and Fees
Limit lender, appraisal, and title fees during the emergency to reduce upfront costs for buyers.
8. National Rent-to-Own Pathways
Create federally supported rent-to-own programs, allowing renters to build equity that leads to ownership.
9. Student Loan Relief for First-Time Buyers
Link student loan forgiveness or repayment adjustments to purchasing a primary residence, easing debt burdens.
10. Expanded Homeownership Counseling and Education
Fund nationwide buyer education programs to prepare families for long-term, sustainable ownership.
Part II: 10 Investor Incentives That Ultimately Benefit Consumers
1. Enhanced Tax Credits for Affordable Housing Development
Expand and scale programs like the Low-Income Housing Tax Credit (LIHTC) to incentivize the creation of starter homes and workforce rentals.
2. Federal Land Development Partnerships
Lease underutilized federal land at low cost to developers who commit to building affordable housing.
3. Incentives for Adaptive Reuse Projects
Provide tax deductions and grants for converting vacant offices, malls, and warehouses into housing.
4. Accelerated Depreciation on Affordable Units
Allow faster write-offs for properties developed or converted into affordable housing.
5. Federal Loan Guarantees for Developers
Lower financing costs by guaranteeing loans for projects that commit to affordability benchmarks.
6. Public-Private Housing Investment Funds
Match private capital with federal funding to reduce investor risk and unlock more affordable housing projects.
7. Property Tax Rebates for Affordable Housing
Offer federal tax relief for investors who meet affordability standards in their developments.
8. Green Housing Incentives
Tie energy-efficiency tax breaks and grants to affordable housing construction, reducing both costs and environmental impact.
9. Expedited Permitting for Affordable Projects
Use emergency powers to accelerate approvals for developments that include affordable housing components.
10. Capital Gains Deferrals for Affordable Reinvestment
Allow investors to defer or reduce capital gains taxes if profits are reinvested in affordable housing—similar to Opportunity Zone benefits.
Why This Dual Approach Matters
By combining direct consumer relief with investor incentives, a National Housing Emergency strategy could address both sides of the equation: making homeownership more attainable while rapidly expanding the supply of affordable homes. This dual-path solution doesn’t just patch the housing crisis—it rewires the system to deliver long-term affordability.
Final Thoughts: Housing as a National Priority
Housing affordability is no longer a local issue—it’s a national crisis. Declaring a National Housing Emergency could be the turning point America needs. By empowering consumers and mobilizing private capital, the federal government can restore hope to millions of families priced out of the market and finally put the dream of homeownership back within reach.