The 2024 Presidential Election is poised to play a critical role in shaping the future of federal housing policy, particularly in areas such as homeownership, tax credit programs like the Low-Income Housing Tax Credit (LIHTC), and Fair Housing enforcement. The two major candidates, former President Donald Trump and Vice President Kamala Harris, present contrasting approaches that could shape the housing landscape for years to come. Let’s take a closer look.
Homeownership Incentives
Homeownership remains a cornerstone of creating wealth for Americans, and both candidates have addressed how they would promote it. Donald Trump’s campaign rhetoric emphasizes deregulation and tax incentives aimed at boosting homeownership by reducing barriers to entry. Trump is likely to advocate for expanding tax deductions for mortgage interest and other taxes – which he believes will stimulate the housing market and make homeownership more accessible, particularly for middle- and upper-income families. Additionally, Trump may propose reducing federal oversight in the mortgage industry, arguing that this would encourage banks to lend more freely, thereby increasing homeownership rates. When he took office in 2018, he signed legislation rolling back many of the Dodd-Frank regulations.
Vice President Harris, in contrast, supports targeted federal interventions to promote homeownership among underrepresented groups and first-generation homeowners. She announced her housing plan in early August, calling for the construction of three million new housing units and the expansion of down payment assistance programs (up to $25,000) for first time home buyers. The Vice President has enacted stricter enforcement of lending practices to ensure that all Americans have equal access to mortgage loans – leading efforts to combat racial bias in home appraisals. Additionally, she has called for a crackdown on corporate landlords buying houses and price-gouging renters.
Low-Income Housing Tax Credit (LIHTC)
The LIHTC is one of the most important tools for financing affordable rental housing in the U.S., and the candidates’ views seem to reflect their broader housing philosophies. Donald Trump has expressed support for maintaining or even expanding LIHTC to encourage private investment in affordable housing development. However, his approach may also include efforts to streamline the program, potentially reducing regulatory burdens on developers to increase efficiency and lower costs. It’s worth noting, Trump’s running mate, Senator JD Vance, had the chance to vote on the expansion of LIHTC as part of the tax package that overwhelmingly passed the House in April.
Vice President Harris, on the other hand, is likely to push for a significant expansion of LIHTC when the tax package comes up for a vote next year, combined with stronger federal oversight to ensure that the benefits of the program reach those who need them the most. Harris may advocate for additional tax credits or subsidies for developers who build in underserved communities or include a higher percentage of affordable units in their projects. Her approach underscores a commitment to using federal resources to directly address the affordable housing crisis and promote economic diversity.
Fair Housing
Fair Housing is another critical area where the candidates’ positions differ. Donald Trump’s administration previously rolled back Obama-era fair housing regulations, including the Affirmatively Furthering Fair Housing (AFFH) rule, arguing that these regulations were overly burdensome and interfered with local control over zoning and development. If re-elected, Trump is expected to continue prioritizing local autonomy over federal enforcement.
The Vice President, however, is likely to restore and strengthen federal fair housing regulations. She has consistently advocated for robust enforcement of the Fair Housing Act, aiming to address systematic discrimination in the housing market. Harris’s policies would likely reinstate AFFH and increase funding for the Department of Housing and Urban Development (HUD) to ensure fair housing laws are fully enforced. It is critical to note, however, the Biden-Harris Administration has not yet finalized the new AFFH rule proposed almost two years ago.
It is fair to say that her philosophy reflects a belief that the federal government has a critical role in ensuring that all Americans, regardless of race, income, or background, have equal access to housing opportunities.
Conclusion
The outcome of the 2024 Presidential Election will have significant implications for federal housing policy, and the potential to increase the supply of affordable housing amid rising living and homes costs, making it a pivotal moment for ensuring housing security for all. Donald Trump’s market-oriented, deregulatory approach contrasts sharply with Vice President Harris’s emphasis on federal intervention and equity. As the election draws near, voters will be weighing these competing visions, knowing that the future of homeownership incentives, tax credits and fair housing enforcement depends on the choice they make at the ballot box.