All carrot, 'no stick' in Biden's affordable housing plan
The housing component of the president's massive infrastructure proposal envisions communities voluntarily changing regulations to compete for new pots of money to support growth.
April 3, 2021, 6:00 AM EDT
By Jonathan Allen
WASHINGTON On the campaign trail last year, President Donald Trump warned that Joe Biden would "abolish the suburbs" by forcing them to change housing regulations. Instead, as part of his $2 trillion "American Jobs Plan," President Biden is offering them cash to open their gates voluntarily.
"It's purely carrot, no stick," said a White House official who has worked on the policy.
More broadly, Biden's proposal would inject $213 billion more than three times the Housing and Urban Development Department's annual budget of about $60 billion into developing, maintaining and retrofitting affordable units over the next eight years, including both public projects and lower-rent private residences. That spending would be for both new and existing homes in cities, suburbs and small towns.
Subsidies are necessary, Democrats say, because the demand for cheap housing far outstrips the available stock, federal rental-assistance coffers only support about a quarter of the eligible population and it's not currently profitable for developers to build lower-cost units.
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https://www.nbcnews.com/politics/white-house/all-carrot-no-stick-biden-s-affordable-housing-plan-n1262907