Affordable housing remains a critical issue affecting millions of Americans. The disparity between housing prices and income levels is widening, and the upcoming election could significantly shape housing policies and funding for those relying on housing assistance programs for the foreseeable future.

The positions of the current presidential candidates on housing are likely to have a profound effect on the lives of everyday Americans. Their policies could dictate the future of federal investments in affordable housing initiatives. For individuals concerned about housing stability, understanding these positions is crucial.

The election’s outcome could also influence the enforcement of fair housing laws, potentially reshaping anti-discrimination policies. This could have broader economic implications, affecting job creation and consumer spending.

For social workers and others helping individuals navigate these impending changes, this election holds significant importance. So, what does this mean for the average American in need of affordable housing?

The Urgent Need for Affordable Housing in America

Affordable housing is a significant concern across the United States. According to the National Low Income Housing Coalition, nearly 10 million low-income families devote more than half of their income to rent. There exists a severe shortage of affordable and accessible rental homes for extremely low-income households. In 2021, there were only 36 affordable and available rental homes for every 100 extremely low-income renter households.

An Overview of Government-Funded Housing Programs

Section 8 Housing Choice Voucher Program

The U.S. Department of Housing and Urban Development (HUD) administers the Section 8 Housing Choice Voucher Program, which provides rental assistance to low-income families, the elderly, and those with disabilities. Participants receive vouchers to help offset the cost of private market rents, fostering housing stability and affordability.

Public Housing

Public housing refers to government-owned properties that offer low-cost rental units to qualifying families. The objective of this program is to guarantee safe and decent housing for those in need.

Other Assistance Programs

Key programs also include the Low-Income Housing Tax Credit (LIHTC), which encourages private developers to construct affordable housing, and the Community Development Block Grant (CDBG) program, which provides funding for local development projects.

Trump’s Housing Policies During His Last Term

During his presidency from 2017 to 2021, Donald Trump’s administration instituted various changes to housing policies that influenced affordable housing:

Reduction in Housing Budgets: The Trump administration proposed substantial cuts to HUD’s budget, suggesting a reduction of $6.2 billion, or 13%, in 2017. This included decreases in programs such as Section 8.

Regulatory Changes: The administration aimed to roll back regulations they believed impeded housing development. This effort included halting the Affirmatively Furthering Fair Housing rule, originally designed to combat segregation and promote equitable housing.

Opportunity Zones: Introduced in the 2017 Tax Cuts and Jobs Act, Opportunity Zones aimed to stimulate economic development in distressed areas. However, critics contended that the benefits did not notably enhance affordable housing and often resulted in gentrification instead.

Current Democratic Policies on Affordable Housing

The Democratic Party, with Kamala Harris as its presidential candidate, proposes several initiatives targeting affordable housing issues:

Increased Funding for HUD: The proposal includes substantial increases in HUD funding to bolster existing programs such as Section 8/Housing Choice Vouchers and to establish new affordable housing units, totaling $100 billion in investments.

Rent Relief Programs: Kamala Harris champions rent relief strategies aimed at families experiencing housing instability. Her proposal entails a $100 billion investment over a decade to provide rental aid for low-income households.

Incentives for Affordable Housing Development: The Democratic agenda advocates for tax incentives and subsidies to encourage developers to construct affordable housing. This includes expanding the Low-Income Housing Tax Credit (LIHTC), which has been crucial in promoting the creation of affordable housing units nationwide.

The Effect of Election Outcomes on Affordable Housing

The election results will greatly influence the future of affordable housing in the U.S. Here’s how each potential administration may impact this sector:

Under a Republican Administration: Continuing Trump’s policies may result in further cuts to HUD’s budget and reduced regulatory oversight. While this might lower government expenditure, it could also lead to fewer resources for low-income housing and greater difficulties for those depending on programs like Section 8.

Under a Democratic Administration: An increase in funding and supportive policies for affordable housing is likely to occur. Enhanced rent relief initiatives and incentives for builders to develop affordable housing may alleviate some challenges faced by low-income families. These measures could also promote fairer housing practices and diminish housing insecurity.

Examples of Successful Affordable Housing Policies

Numerous examples and studies demonstrate the tangible benefits of affordable housing initiatives!

Success of the LIHTC: Since its inception in 1986, the Low-Income Housing Tax Credit has been pivotal in generating millions of affordable housing units. This initiative illustrates how targeted tax benefits can catalyze the development of affordable housing.

Housing First Approach: Programs that prioritize providing shelter to homeless individuals without prerequisites have shown substantial success. These initiatives not only decrease homelessness but also enhance community health and reduce public expenditures on healthcare and emergency services.

Positive Outcomes from Section 8: Research indicates that families utilizing Section 8 vouchers enjoy improved housing stability, along with better educational and health outcomes for children.

FAQs

What is Section 8 and how does it work?

Section 8 is a federal housing assistance program that offers vouchers to low-income families, the elderly, and individuals with disabilities, helping them afford safe housing from private landlords. Recipients contribute a portion of their income towards rent, while the voucher covers the remaining amount up to a specified limit.

How did Trump’s policies impact affordable housing?

The policies enacted during Trump’s administration involved significant budget cuts to HUD and alterations to regulations designed to promote fair housing, resulting in diminished resources for affordable housing initiatives and heightened challenges for low-income families seeking help.

What are Kamala Harris’s housing proposals?