Let's take a minute to celebrate momentum.
This work isn't done, but it's moving in the right direction.
Just a reminder: homeownership builds wealth.
Homeowners have 44.5 times more net worth than renters.
This is not a disputed fact: if you want to know if a thing is true or not, look at laws that were specifically created to prevent certain populations from having equal rights. Historically, women & minorities - which even included Italians and Irish at one time, as evidenced in redlining laws & maps - were denied rights to homeownership.
Please do not get hung up on the term "affordable housing".
If you've been involved in buying or selling a home in Jacksonville FL in the last year, you know that many, many people have been priced out of this market; people who could have easily bought a home in 2019 no longer can because of the lack of inventory and the resulting rise of home prices (supply & demand economics).
Historic Investment in Affordable Housing
The Build Back Better framework includes a $150 billion investment in affordable housing, a key NAR priority and focus of its advocacy efforts for the past year.
Under the agreement, public housing and rental assistance would get funding boosts. The plan would also create more than one million new affordable rental and single-family homes and invest in down-payment assistance.
The White House says the down-payment assistance under the plan would allow “hundreds of thousands of first-generation homebuyers to purchase their first home and build wealth.”
As negotiations continued in recent weeks, media reports suggested that housing provisions might be cut from the bill altogether.
In response, last week, NAR CEO Bob Goldberg joined other housing leaders and key members of Congress near the Senate steps for a press conference calling for the inclusion of affordable housing provisions in the final bill.
“As a nation, we have to find ways to close the supply shortfall,” Goldberg said at the press conference. “Doing so will be particularly meaningful for lower-income households, millennials, and households of color.”
“We continued to press both publicly and privately for these provisions,” says Shannon McGahn, chief advocacy officer at NAR. “Affordable housing is the key to unlocking prosperity for millions of Americans currently excluded from the American Dream. This investment is critical for closing the racial homeownership gap and addressing income disparity. It opens up homeownership for first-generation and first-time buyers.”
The framework agreement includes funding for the following programs within the housing section:
Minority Business Development Agency
Tax Provisions Spare Real Estate Investments
The most feared taxes on real estate investment were excluded.
“Some of the earlier tax proposals floated would have devastated the real estate sector, which makes up nearly one-fifth of the entire economy,” McGahn says. “This framework has no 1031 like-kind exchange limits, no capital gains tax increases, no change in step-up in basis, no tax on unrealized capital gains, no increased estate tax, no carried-interest provisions, and no 199A limits. The tax provision of this framework is very positive for consumers, property owners, and the real estate economy.”
“We worked for more than a year to educate lawmakers on these issues and launched a targeted Call For Action on taxes. The tax provision of this framework is testament to the effectiveness of our education campaign in Washington,” McGahn continues.
Extract from Source: NAR.realtor