As we near the 2024 presidential election, community association board members, managers, and business partners may want to look at the housing plans presented by the two candidates.
Both the Trump and Harris campaigns released policy proposals. Highlights from their official websites are below:
Former President Trump’s Proposal
- To help new homebuyers, Trump plans to: reduce mortgage rates by slashing inflation; open limited portions of federal lands to allow for new home construction; promote homeownership through tax incentives and support for first-time buyers; and cut unnecessary regulations raising housing costs.
Vice President Harris’ Proposal
- Construct 3 million new units and take down barriers at the state and local levels that stand in the way of building new housing.
- Tax incentives for building starter homes to complement the neighborhood homes tax credit for housing that is too costly or difficult to develop or rehabilitate.
- Create a $40 billion innovation fund for local governments to build housing, support construction financing, and empower developers and homebuilders to design and build affordable rentals and homes. Take action to make certain federal lands eligible to be repurposed for new housing developments.
- Cut red tape to bring down housing costs, streamline permitting processes and reviews including for transit-oriented development.
- Remove tax benefits for major investors who acquire large numbers of single-family rental homes and stop rent-setting data firms from price fixing through the Preventing the Algorithmic Facilitation of Rental Housing Cartels Act.
- Provide down-payment support for first-time homeowners. Eligible buyers would receive up to $25,000 in down payment assistance with more support for first-generation homeowners.
Analysis
The Harris proposal calls for the construction of new housing units, and support for first-time homebuyers. Her plan could have both drawbacks and benefits for associations, as it would encourage state and local reviews of long-standing zoning rules and potential infringements on community association oversight of new construction. However, addressing corporate housing ownership could help reduce housing costs in existing communities in the long-term and support efforts to reduce the number of vacation rentals in certain communities. Harris’ proposal could see a surge in development near transit, which may impact existing communities. Associations may need to balance the need for new housing and existing infrastructure, not to mention rework governing documents to account for the voting rights of multiple units on a single lot.
Meanwhile, the Trump plan does not outline how administration would achieve goals such as reducing inflation to address mortgage rates. A reduction in federal rules and regulations could lead to a knock-on effect, which spurs an increase in new housing construction and creates an opportunity for larger states to review their own rules to reduce barriers to new construction, potentially in existing neighborhoods.
Both plans mention opening new federal land to housing, which could alleviate pressure for new construction in existing communities, depending on the area. Both candidates also have a focus on reducing overall housing costs, but they tackle that goal through different lenses.
>>Want to learn more about CAI’s stance on issues impacting your community? Check out our full range of public policies.
