Let’s Build More Homes

Economy
1

Proposal to Increase the Supply of New Homes: Federal Strategies and Solutions

Introduction
The U.S. faces a housing shortage that drives up costs and leaves millions struggling to find affordable housing. Addressing this crisis requires bold federal action to expand the supply of homes. This proposal focuses on leveraging federal authority, including specific programs and executive orders, to reduce regulatory barriers, incentivize construction, and unlock more land for housing development.

  1. Reforming Zoning Laws and Land-Use Regulations

Problem:

Local zoning and land-use regulations often block high-density housing or innovative developments, severely limiting new construction.

Proposed Federal Actions:

•	Executive Order for Zoning Overrides:
•	Issue an executive order under the Commerce Clause to preempt local zoning restrictions in areas with acute housing shortages, requiring local governments to allow high-density residential developments near transit corridors and employment hubs.
•	HUD Conditional Grants:
•	Link existing HUD Community Development Block Grants (CDBG) to zoning reforms. Municipalities must meet density and affordability targets to qualify for funding.
•	“Build to Scale” Federal Mandate:
•	Establish a federal review panel, under the Department of Housing and Urban Development (HUD), to override state or local restrictions that prevent federally-funded housing projects.

Relevant Programs:

•	Community Development Block Grants (CDBG)
•	Choice Neighborhoods Initiative
  1. Expanding Federal Tax Incentives for Builders

Problem:

High construction costs discourage developers, especially for affordable housing.

Proposed Federal Actions:

•	Expand Low-Income Housing Tax Credits (LIHTC):
•	Increase federal funding for LIHTC and require states to allocate a larger percentage toward areas with high demand for affordable housing.
•	Workforce Housing Credits:
•	Create a new federal tax credit for developers constructing housing for middle-income earners in metro areas with significant housing deficits.
•	Temporary Tariff Waivers:
•	Temporarily suspend tariffs on critical building materials like lumber and steel to reduce construction costs.

Relevant Programs:

•	Low-Income Housing Tax Credit (LIHTC)
•	New Market Tax Credits
  1. Increasing Access to Federal Land for Housing

Problem:

Affordable land for construction is scarce, especially in urban areas.

Proposed Federal Actions:

•	Repurpose Federal Land for Housing:
•	Direct the Department of the Interior to identify and release surplus federal land for residential development, prioritizing land near urban centers and job markets.
•	Public-Private Partnerships (PPPs):
•	Use PPPs to develop federal land into mixed-income housing, with a mandate that 50% of units be affordable.
•	“Land for Homes” Program:
•	Establish a new program under the Federal Housing Administration (FHA) that awards grants to localities and developers for converting underutilized federal properties into residential housing.

Relevant Programs:

•	Surplus Property Disposal Program (GSA)
•	Federal Housing Administration (FHA)
  1. Addressing Labor Shortages in Construction

Problem:

A lack of skilled labor in the construction industry slows down housing projects and increases costs.

Proposed Federal Actions:

•	National Construction Workforce Development Program:
•	Expand federal funding for trade apprenticeships through the Department of Labor, focusing on construction-related skills like carpentry, electrical work, and plumbing.
•	Immigration Reform for Skilled Workers:
•	Introduce a specialized visa program under DHS (e.g., H2-C visas) for construction workers, ensuring an adequate supply of skilled labor for housing projects.
•	Incentives for Automation and Efficiency:
•	Create tax incentives for construction firms adopting innovative technologies like 3D printing and modular construction, which reduce reliance on human labor.

Relevant Programs:

•	Workforce Innovation and Opportunity Act (WIOA)
•	H2 Visa Program
  1. Improving Infrastructure to Support Housing Growth

Problem:

Insufficient infrastructure (roads, utilities, public transit) deters developers and limits the potential for large-scale housing projects.

Proposed Federal Actions:

•	Federal Infrastructure Matching Program:
•	Through the Department of Transportation, offer federal matching funds to states that prioritize infrastructure improvements in areas zoned for high-density housing.
•	“Housing-Linked Infrastructure Grants”:
•	Condition federal infrastructure funding (e.g., BUILD and INFRA grants) on state and local governments’ commitment to building housing along new infrastructure projects.
•	National Housing Transit Initiative:
•	Establish a federal initiative that integrates housing projects into all federally-funded transit developments, ensuring mixed-income housing is built alongside major public transit expansions.

Relevant Programs:

•	BUILD Grants (Better Utilizing Investments to Leverage Development)
•	INFRA Grants (Infrastructure for Rebuilding America)

Conclusion
To address the housing shortage, the federal government must take the lead. By leveraging its financial resources, regulatory authority, and executive power, the government can significantly increase the supply of new homes. Reforming zoning laws, expanding tax credits, unlocking federal land, addressing labor shortages, and linking infrastructure to housing growth are essential steps toward a robust, sustainable housing market.

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You have to repeal Dodd Frank

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Thanks @Onemangang35. Grateful for your input.

I had to research and here’s what I learned:

What is the Dodd-Frank Act?

The Dodd-Frank Wall Street Reform and Consumer Protection Act (commonly referred to as “Dodd-Frank”) was passed in 2010 in response to the 2008 financial crisis. The law aimed to reduce risks in the financial system by increasing regulatory oversight, promoting transparency, and protecting consumers. Key provisions include:
1. Creation of Regulatory Agencies:
• Establishment of the Consumer Financial Protection Bureau (CFPB) to oversee consumer financial products.
• Strengthening the Federal Reserve’s supervision of large financial institutions.
2. Regulation of Financial Institutions:
• Higher capital requirements for banks.
• Restrictions on risky lending practices.
3. Volcker Rule:
• Limits banks from engaging in speculative investments unrelated to customer needs.
4. Mortgage Market Reforms:
• Sets tighter underwriting standards for mortgages.
• Requires lenders to verify borrowers’ ability to repay loans.

Why Do People Want to Repeal or Reform Dodd-Frank?

Critics argue that Dodd-Frank imposes excessive regulations that have unintended consequences, particularly for smaller financial institutions and the housing market. The main reasons for repeal or reform include:
1. Reduced Credit Availability:
• Tighter lending standards and increased compliance requirements discourage banks from issuing mortgages, especially to lower-income borrowers or first-time homebuyers.
2. Impact on Small and Community Banks:
• Smaller banks struggle to comply with complex regulations, limiting their ability to provide mortgage loans.
3. Higher Costs for Borrowers:
• Increased regulatory costs for banks are often passed on to consumers through higher interest rates or fees.
4. Restricted Mortgage Innovation:
• Dodd-Frank limits the variety of mortgage products banks can offer, reducing options for borrowers.

How Repealing or Reforming Dodd-Frank Might Help Expand New Home Construction

1.	Increased Mortgage Lending:
•	By loosening underwriting standards, banks could issue more mortgages, increasing demand for new homes. More buyers in the market encourage developers to build additional housing.
•	Community banks, which often fund construction loans for smaller developers, would have more flexibility to lend.
2.	Expanded Access to Construction Loans:
•	Smaller developers often rely on local and regional banks for financing. Repealing provisions that overly burden these banks could increase the availability of construction loans, directly supporting new housing projects.
3.	Lower Borrowing Costs:
•	Reduced compliance costs for banks could translate into lower mortgage rates or fees, making homeownership more affordable and increasing demand for new homes.
4.	Diversification of Mortgage Products:
•	Without stringent restrictions, lenders could reintroduce innovative mortgage products (e.g., adjustable-rate mortgages, interest-only loans) that might help more people qualify for home purchases.
5.	Economic Growth:
•	With increased credit availability and construction activity, repealing Dodd-Frank could stimulate the broader economy, creating jobs and enabling further investment in housing.

Risks of Repealing or Relaxing Dodd-Frank

While repeal might boost housing construction in the short term, critics warn of potential downsides:
1. Increased Financial Instability:
• Loosening regulations could lead to risky lending practices that contributed to the 2008 housing bubble.
2. Consumer Protection Concerns:
• Weakening safeguards might result in predatory lending practices, putting some homebuyers at financial risk.
3. Economic Cycles:
• Increased lending could artificially inflate housing demand, creating unsustainable price growth.

Balancing Reforms with Housing Expansion

Rather than a full repeal, a targeted reform of Dodd-Frank could balance economic growth with financial stability. For example:
• Exempt small and community banks from some of the stricter provisions.
• Simplify regulations for construction loans to encourage new housing developments.
• Streamline compliance processes for lenders offering mortgages to first-time buyers.

By addressing these specific issues, the federal government could increase access to credit and encourage home construction without compromising financial stability.

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There might be some synergy here between your idea and what I’ve posited with this policy proposal

:point_right: Reclaiming Housing as a Human Right - A Constitutional Imperative

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@Nicole_C_Scott Thanks Nicole.

When i posted this i was overthinking and using Chat GPT for my post research. Even on a good day, I tend to bore people to death! Glad to get some feedback.

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I’ve added your proposal link in the Observations section. I’m linking to others’ observations and proposals to illustrate how others here want to solve problems around housing, the cost of housing, the taxes on housing, etc. Here’s to hoping we all inspire one another to solve problems!

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