Dive Brief:
- The National Association of Home Builders praised Democratic presidential candidate and former Secretary of State Hillary Clinton’s proposed $25 billion housing plan. The plan is part of a wider $125 billion "economic revitalization program" that Clinton’s campaign has offered up as part of her presidential campaign.
- Clinton’s campaign said that in order to "lift more families into sustainable homeownership," her plan would provide down payment assistance, housing counseling programs, an expansion of credit risk criteria beyond credit scores, more affordable rental housing and clarification of lending rules, according to Housing Wire. Clinton's spokespeople added, however, that her plan does not include lowering lending standards for families that are "not prepared" to become homeowners.
- In addition to the NAHB, J. Ronald Terwilliger of the Terwilliger Foundation for Housing America’s Families, has also come out in favor of Clinton’s plan. He said that her "proposals to increase investment in the Low-income Housing Tax Credit and encourage communities to embrace land use policies that foster the production of more affordable rental homes are essential to solving the rental affordability crisis."
Dive Insight:
To help with down payments, Clinton's plan would provide a savings matching program, up to $10,000, for "responsible homeowners," Housing Wire reported. The housing proposal would also push government agencies to "use the new generation of credit testing tools" to determine mortgage eligibility.
Another element of the plan would require every government agency that supports mortgage lending to clarify their lending requirements within 90 days.
To help counter rising rental rates, Clinton said she would increase the supply of Low Income Tax Credits in high-demand communities and implement land use strategies to make it easier to build affordable housing.
In order to accomplish her plan, Clinton said her administration will make sure that the Department of Justice enforces all fair lending and fair housing laws and that Fannie Mae, Freddie Mac and other U.S. lenders "meet their responsibility to provide lending in communities that have been historically underserved."
"We applaud Secretary Clinton," NAHB Chairman Ed Brady said in a statement, "for recognizing the significant role that housing plays in our local communities and economy and being one of the first presidential candidates to present a housing and community development plan that will help boost homeownership, rental housing and employment opportunities for the American people."
