Affordable Housing Platforms of Presidential Candidates

person A.J. Johnson today 08/18/2019

According to the National Low-Income Housing Coalition’s (NLIHC) 2019 Out of Reach report, a full-time worker needs to earn an average hourly wage of $22.96 to afford a modest, two-bedroom rental home in the United States.

This amount is called the "housing wage," and is $15.71 higher than the federal minimum wage of $7.25 per hour and $5.39 higher than the national average hourly wage of $17.57 that is earned by renters. In nine states and the District of Columbia, the two-bedroom housing wage is over $25 an hour.

With this study as a backdrop, it is worth taking a look at the housing proposals of the 2020 presidential candidates.

An Executive Order signed by President Trump in June 2019 establishes the White House Counsel on Eliminating Barriers to Affordable Housing Development and is chaired by HUD Secretary Ben Carson.

The expressed goal of the order is to loosen restrictive zoning and building regulations, increase the supply of housing, and bring down housing costs.

To date, this is the only action from the administration with a direct relation to housing affordability. However, because most regulatory barriers to affordability occur at the local level, the federal government has relatively little leverage in this area.

One thing the executive order does do is lock in affordable housing as a 2020 issue. So, how are the current Democratic candidates for housing approaching the problem? Following is a summary description of the plans that have been made available to this point.

Senator Elizabeth Warren

As she does with many issues, the housing plan released by Senator Warren is very detailed. Warren’s plan, "the American Housing and Economic Mobility Act," includes, among other things:

  • Building, preserving or rehabilitating 3.2 million housing units nationwide for lower- and middle-income people in order to lower rents by 10%. This would be funded by raising the estate tax back to the Bush-era levels;
  • Creating a down-payment assistance program designed to address the black-white homeownership gap by providing assistance to first-time homebuyers who live in formerly red-lined neighborhoods or communities that were segregated by law and are still currently low-income;
  • Expanding fair housing legislation to bar housing discrimination on the basis of sexual orientation, gender identity, marital status, veteran status, or income;
  • Extended the Community Reinvestment Act (CRA) to require non-bank mortgage lenders to invest in minority communities;
  • Providing $2 billion in assistance to mortgage borrowers who are still underwater on their home loans following the financial crisis, meaning they owe more than their homes are worth; and
  • Instituting new requirements for sales of delinquent mortgages.

Senator Cory Booker

Booker’s plan includes:

  • Creation of a tax credit that would aid in capping rental costs at 30% of before-tax income;
  • Implementing zoning reform by requiring cities to eliminate restrictive zoning rules in order to qualify for federal loan and grant programs (it should be noted that Booker is re-thinking this part of his proposal since it will hit lowest income cities the hardest. Wealthy areas that are most likely to use exclusionary zoning are also the least likely to use [or need] federal funds);
  • Funding the construction of new housing units designated for low-income renters by providing $40 billion annually to the Housing Trust Fund;
  • Expanding fair housing laws to prohibit housing discrimination on the basis of sexual orientation, gender identity, or source of income;
  • Expanding access to federal housing assistance programs (this differs 180 degrees from the Administrations current efforts to cut back on the number of people eligible for housing assistance);
  • Creating a fund that would pay for legal counsel for renter’s facing eviction;
  • Increasing the amount of money designated for grants given to communities to administer services for the homeless; and
  • Give $1,000 "baby bonds" to every child at birth, which can grow by up to $2,000 per year depending on the family’s income. This money could then be used to fund the down payment on the purchase of a home.

Senator Kamala Harris

Harris’s plan focuses on increasing the homeownership rates in black communities, and includes:

  • Expanding the range of information used to create credit scores to include data such as rent and utility payments;
  • Setting aside $100 billion for federal grants that would assist with down-payments or closing costs for families who rent or live in historically red-lined communities;
  • Strengthening anti-discrimination laws to prevent discrimination in home sales, rentals, and mortgage lending; and
  • Harris introduced the Rent Relief Act, which would create a refundable tax credit for households making less than $100,000 annually (or $125,000 in high-cost areas) and spend at least 30% of their income on housing costs.

Mayor Pete Buttigieg

Mayor Buttigieg has put forth an extensive proposal, called "The Douglass Plan," to address racial disparities in homeownership and wealth. The plan would create a "21st Century Community Homestead Act" that would be tested in select cities around the country.

Through this program, a public trust would purchase abandoned properties and provide them to eligible residents. These would include people who earn less than the area’s median income or those who live in historically redlined or segregated areas. Residents who participate would be given full ownership over the land and a ten-year forgivable lien to renovate the home so it could be used as a primary residence.

Other proposals by the Mayor include:

  • Funding national investment in affordable housing construction;
  • Reforming land use rules to make it easier to build affordable housing units; and
  • Expanding federal protections for tenants against eviction and unjust harassment.

Senator Bernie Sanders

While Sanders has not put forward a detailed affordable housing plan, he has proposed an "Economic Bill of Rights," which has a housing component. This plan references the fact that some people are paying "40%, 50%, 60% of their limited income in housing," and mentions urban gentrification as an issue that needs to be addressed.

Former Secretary of HUD Julian Castro

As a former HUD secretary who already had an understanding of affordable housing issues, Castro’s plan is detailed and extensive. His proposals include:

  • Expansion of the Housing Choice Voucher program;
  • Creation of a refundable renter’s tax credit for households who spend more than 30% of their income on housing;
  • Allocating an additional $45 billion annually for the national Housing Trust Fund and the Capital Magnet Fund to support affordable housing initiatives;
  • Reforming zoning laws to encourage the construction of affordable housing;
  • Addressing homelessness by expanding funding for grant programs and creating a definition of homelessness at the federal level;
  • Extending fair housing protections to the LGBTQ community and to individuals who were previously incarcerated;
  • Developing an approach to identify where gentrification is occurring and help households avoid being displaced; and
  • Establish zoning policies that take into account climate change.

Senator Amy Klobuchar

Senator Klobuchar has outlined more than 100 actions she plans to take in her first 100 days in office, a number of which involve affordable housing, including:

  • Reversing the Trump administration’s proposed changes to federal housing subsidies;
  • Expanding a pilot program that provides mobility housing vouchers to families with children to help them relocate to higher opportunity neighborhoods;
  • Suspending changes to fair housing policy that are being sought by current HUD Secretary Ben Carson in order to combat housing segregation; and
  • Overhaul housing policy more broadly as part of a national infrastructure plan.

Representative John Delaney

Congressman Delaney has proposed a $125 billion affordable housing plan that would do the following:

  • Increase funding for the Housing Trust Fund to at least $7 billion annually;
  • Create a $5 billion affordable housing grant program that provides funding to states and municipalities that do away with zoning restrictions limiting the construction of affordable multifamily housing (note how this differs from other proposals that would remove federal funding for localities that have exclusionary zoning; this is the "carrot" vs the "stick.")
  • Establish a right to counsel in eviction procedures, accompanied by $500 million in federal funding for low-income renters’ legal representation;
  • Increasing the funding for the Homeless Assistance Grant program and the Department of Veterans Affairs Grant and Per Diem account;
  • Revoke the charters held by secondary-mortgage Fannie Mae and Freddie Mac over five-years and, instead, establish a government guarantee on mortgages through the Government National Mortgage Association (Ginnie Mae); and
  • Require borrowers to put at least 5% down to get a mortgage.

None of the other candidates have put forward extensive affordable housing proposals, although all have mentioned housing as a priority.

In 2018, Senator Michael Bennet introduced legislation to fight evictions by creating a national database to track instances of eviction and giving money to local and state programs that would increase tenants’ legal representation.

Author Marianne Williamson has called for protecting homeowners from predatory lending practices and increasing access to loan modifications for distressed mortgage borrowers.

Entrepreneur Andrew Yang calls for revisiting zoning rules by "taking the needs of renters and those who would be interested in moving into areas into account."

Former Congressman Beto ORourke has stated that he wants to increase funding to the National Housing Trust Fund.

Senator Kirsten Gillibrand has proposed a $50 billion investment each year in the Housing Trust Fund. She also said that she would choose a HUD secretary "who understands the nature of homelessness as well as affordable housing."

While all of the outlined "plans" are really nothing more than part of a campaign platform at this point, the detail of some of them shows that there is a fairly high level of thought being put into the affordable housing crisis the U.S. is facing. As the 2020 presidential campaign heats up, we will certainly hear more on the subject and can look forward to more specifics. One thing is certain - no matter who is elected President in 2020, affordable housing will be of much greater import than in any prior election.

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Understanding Tariffs and Their Impact on Construction Costs

What Are Tariffs? A tariff is simply a tax imposed on imported goods. When products like building materials enter U.S. ports, paying the applicable tariff is a standard part of the customs process. Historical Context Tariffs have deep roots in American history. From the colonial era through the early 1900s, they served as the federal government s primary revenue source. They were relatively straightforward to enforce even before modern technology, as customs officers could inspect incoming shipments at ports and collect the appropriate fees. The federal government s limited taxing authority under the Constitution meant that a modern income tax was not legally permissible until the 16th Amendment was enacted in 1913. The Decline of Tariffs Despite their historical importance, tariffs have several inherent problems that led to their declining use over the past century: They disadvantaged U.S. agricultural interests and exporters as other countries implemented retaliatory trade barriers. The tax burden fell disproportionately on lower-income individuals who spend more of their income on basic necessities. They couldn t generate sufficient revenue to fund modern government operations. When the global economy faltered in 1930, many nations, including the U.S., implemented protective tariffs with the Smoot-Hawley Act. Most economists view this wave of protectionism as a contributing factor to the severity of the Great Depression. Learning from this experience, the U.S. and other advanced economies gradually reduced trade barriers during the postwar period to foster economic cooperation and peace. Current Tariff Landscape Even during periods of free trade enthusiasm, tariffs never disappeared entirely. They remained relatively low in recent years, dropping to 1.5% in 2017 after decades of bipartisan efforts to establish global trade agreements. The Trump administration increased rates to approximately 3% during his previous term, which President Biden largely maintained. According to the Yale Budget Lab, the Trump administration s announced policies would raise the average tariff to 22.5% higher than during the Smoot-Hawley era and roughly equivalent to 1909 levels. Implementation Authority The scale of newly announced tariffs is significantly larger than previous ones. They affect nearly all goods from every country worldwide and invoke emergency authority not previously used for this purpose. Tariffs Impact on Construction Costs Tariffs increase construction costs through several key mechanisms: Direct price increases on imported construction materials like steel, aluminum, lumber, and other building products. These higher costs are typically passed along to developers and ultimately to end consumers. 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Multifamily Construction Impact For multifamily construction specifically, with 46% of materials sourced from these countries and 35-50% of project costs tied to finished materials, tariffs could increase material costs by 7.5%, potentially raising total construction budgets by 3-4%. Broader Effects Beyond core construction materials, reciprocal tariffs may also influence other building-related imports, such as carpeting, electrical outlets, security equipment, furniture, and tools. Projects that have already been awarded but are not yet started are likely to experience the most significant impact. Industry forecasts suggest the construction industry will feel the brunt of tariff policy changes in late 2025 and early 2026. Meanwhile, due to tariff-related inflation concerns, the Federal Reserve is expected to maintain stable interest rates through most of 2025. Recent Developments Homebuilders have been relieved, as Canada and Mexico were exempted from the latest round of tariffs, protecting key lumber and drywall component imports. Additionally, a carveout exists for lumber and copper imports. These tariff developments are challenging the U.S. housing market, which is already struggling with supply constraints and affordability issues. Developers with affordable multifamily housing projects in the pipeline or underway but for which materials have not yet been purchased should prepare for these possible increases. Developers facing this uncertainty should take a proactive, strategic approach. Here are some of the steps they should consider: 1. Lock in Pricing Where Possible Negotiate Early Procurement Contracts: Secure pricing and delivery timelines now for materials that may be subject to tariffs. Bulk Purchasing: If financially feasible and storage is available, purchase critical materials before the tariff is implemented. 2. 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Monitor Policy and Industry Updates Stay Informed: Watch for updates on tariff decisions and industry responses through trade associations (e.g., NAHB, NMHC). Engage in Advocacy: Support efforts to exempt affordable housing materials from tariffs or seek policy carve-outs. 6. Build Schedule Flexibility Buffer Time for Delays: Tariffs often disrupt supply chains, so build in extra time for procurement and delivery to avoid construction slowdowns. 7. Document Impacts Track Cost Changes: Keep records showing cost increases due to tariffs this can be useful when requesting additional funding or extensions from oversight bodies. Being proactive can help developers manage risk rather than be blindsided by rising costs. In this environment, a smart developer remains nimble, communicates clearly, and plans for the worst while hoping for the best.

A. J. Johnson Partners with Mid-Atlantic AHMA for Training on Affordable Housing - May 2025

In May 2025, A. J. Johnson will partner with the MidAtlantic Affordable Housing Management Association for four live webinar training sessions for real estate professionals, particularly those in the affordable multifamily housing field. The following sessions will be presented: May 20: Acquisition/Rehab, Tenant Selection Plans & Affirmative Fair Housing Marketing Plans The complexities of affordable housing development don t stop at financing. When acquisition, rehabilitation, and layered funding programs collide, the stakes increase. Join industry expert A. J. Johnson for a practical and timely webinar on compliance pitfalls and planning strategies that can make or break your LIHTC project. This fast-paced session will break down the following: Acquisition-Rehab LIHTC Projects: How IRS rules impact "placed in service dates, acquisition credits, and meeting the 120-day qualification rule. The Available Unit Rule (AUR): Why this often-overlooked rule can lead to credit loss even on properties that no longer recertify. Tenant Selection Plans (TSPs): What every property manager must know about layered program requirements, lottery procedures, and legal screening standards. Affirmative Fair Housing Marketing Plans (AFHMPs): How to structure your outreach to comply with HUD requirements and avoid costly fair housing violations. Whether you're a developer, property manager, or compliance officer, this training will give you actionable strategies to keep your project on track and in full regulatory compliance. Who Should Attend - LIHTC developers, compliance specialists, property managers, syndicators, and housing agency staff responsible for acquisition, rehabilitation, and oversight of layered programs. May 21: HOTMA - Update on HUD Requirements On January 9, 2023, HUD published a final rule implementing The Housing Opportunity Through Modernization Act (HOTMA), signed into law on July 29, 2016. This final rule was published in the Federal Register on February 14, 2023, and has yet to become effective for HUD programs. Virtually all HUD programs are impacted by the rule, as are the Low-Income Housing Tax Credit (LIHTC) Program and the Rural Development Section 515 Program. Since publishing the final rule in February 2023, HUD has provided additional guidance in implementing the rule, including extensions regarding implementation. This three-hour training will explain any updated HUD guidance and will cover the following areas: Definitional changes relating to earned and unearned income, non-recurring income, and foster children; Revised Income Exclusions; New requirements relative to Student Financial Assistance; Changes to the HUD permitted deductions from gross income, including a full review of the new "hardship exemptions; Brand new rules regarding assets; New Interim Recertification requirements; and The new definition of "annual income. May 22: Basic LIHTC Compliance This training is designed primarily for site and investment asset managers responsible for site-related asset management. It is especially beneficial to those managers who are relatively inexperienced in the tax credit program. It covers all aspects of credit related to on-site management, including the applicant interview process, determining resident eligibility (income and student issues), handling recertification, setting rents - including a full review of utility allowance requirements - lease issues, and the importance of maintaining the property. The training includes problems and questions to ensure students fully comprehend the material. May 28: Dealing with Income and Assets in Affordable Multifamily Housing - Course Overview This live webinar provides concentrated instruction on the required methodology for calculating and verifying income and determining the value of assets and income generated by those assets. The first section of the course involves a comprehensive discussion of employment income, military pay, pensions/social security, self-employment income, and child support. It concludes with workshop problems designed to test what the student has learned during the discussion phase of the training and serve to reinforce HUD-required techniques for determining income. The second component of the training focuses on a detailed discussion of requirements related to determining asset value and income. It applies to all federal housing programs, including the low-income housing tax credit, tax-exempt bonds, Section 8, Section 515, and HOME. Multiple types of assets are covered in terms of what constitutes an asset and how they must be verified. This section also concludes with problems designed to test the student s understanding of the basic requirements relative to assets. These sessions are part of a year-long collaboration between A. J. Johnson and MidAtlantic AHMA and are designed to provide affordable housing professionals with the knowledge needed to manage the complex requirements of the various agencies overseeing these programs effectively. Individuals or organizations interested in any (or all) training sessions may register by visiting either www.ajjcs.net or https://www.mid-atlanticahma.org.

Crime-Free Ordinances: When Local Laws Conflict with Federal Fair Housing Protections

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This conflict stems from the fact that these ordinances may violate four major federal laws: 1. The Fair Housing Act Crime-free ordinances often have a disproportionate impact on protected classes. For example: When these ordinances require eviction based on arrests rather than convictions, they disproportionately affect Black and Hispanic tenants, who statistically face higher rates of police interaction regardless of criminal activity. Blanket policies requiring eviction of an entire household due to one member s criminal activity can discriminate against families with children, female-headed households, and certain cultural groups where extended family living arrangements are common. 2. Title VI of the Civil Rights Act of 1964 Title VI prohibits discrimination in programs receiving federal funds. When municipalities with crime-free ordinances receive federal housing funds, they may violate Title VI if: Their ordinances have disparate impacts on protected classes Implementation decisions are influenced by discriminatory intent or stereotypes about certain neighborhoods or demographic groups 3. The Americans with Disabilities Act (ADA) Crime-free ordinances may discriminate against individuals with disabilities in several ways: Automatic eviction for behavior related to mental health conditions without consideration of reasonable accommodations Policies that penalize multiple emergency service calls, which may disproportionately impact those with chronic health conditions requiring frequent medical assistance Exclusions of individuals with past substance use disorder convictions, despite recovery and treatment 4. The Violence Against Women Act (VAWA) VAWA specifically protects victims of domestic violence, dating violence, sexual assault, and stalking from housing discrimination. Crime-free ordinances often violate these protections by: Requiring eviction when police are called to a property multiple times, discouraging victims from seeking help Failing to distinguish between perpetrators and victims when criminal activity occurs Treating domestic disturbances as "nuisances rather than recognizing them as situations where victims need protection Problematic Practices in Crime-Free Ordinances Collective Punishment: Holding Entire Households Accountable One of the most troubling aspects of many crime-free ordinances is the requirement to evict entire households based on one individual s actions. This approach: Punishes innocent family members who had no knowledge of or participation in criminal activity Creates homelessness risks for vulnerable household members, including children, elderly relatives, and individuals with disabilities Disproportionately impacts communities where multi-generational or extended family living arrangements are cultural norms. Blanket Exclusions Based on Criminal Records Many ordinances include overly broad exclusions for individuals with criminal records: Lifetime bans for certain offenses, regardless of rehabilitation or time elapsed Failure to consider the nature, severity, or relevance of the criminal conduct to tenant suitability No individualized assessment of actual risk to property or other tenants Exclusion Based on Arrests Rather Than Convictions Some ordinances allow or require action against tenants based merely on arrests: Violates the presumption of innocence It has a disparate impact on communities of color, which experience higher rates of arrests that do not lead to convictions Creates housing instability based on unproven allegations rather than established facts Automatic Exclusion for Any Criminal Conviction Overly broad policies that automatically deny housing based on any criminal history: Fail to distinguish between violent crimes and minor offenses Ignore evidence of rehabilitation and the age of convictions Create permanent barriers to housing for individuals who have served their sentences and are working to reintegrate into society. Penalizing Emergency Service Calls Particularly problematic are provisions that treat emergency calls as "nuisances : Discourages tenants from seeking emergency medical assistance Forces vulnerable individuals to choose between needed help and keeping their housing Creates dangerous situations where tenants delay calling for assistance during genuine emergencies. Punishing Victims of Domestic Violence Perhaps most concerning is how these ordinances often penalize victims: Treating domestic violence incidents as "nuisance activities requiring eviction Failing to distinguish between calls made by victims versus perpetrators Creating a situation where victims must choose between enduring abuse in silence or risking homelessness. Legal Protections and Ongoing Developments The legal landscape around crime-free ordinances continues to evolve. In states like Illinois, legislation has been enacted to protect survivors of domestic or sexual violence and individuals with disabilities from being penalized due to calls to police for assistance. The Illinois Department of Human Rights and the UIC Law School Fair Housing Legal Support Center and Clinic have developed a guidebook addressing the fair housing implications of nuisance and crime-free ordinances. In 2024, additional cases have further clarified the legal boundaries of these ordinances: A case against a municipality alleged violations of both the Americans with Disabilities Act and Fair Housing Act for enforcing crime-free housing ordinances that denied tenants with mental health disabilities equal access to emergency response services. The consent decree required the municipality to revise its program rules and enforcement practices and adopt non-discrimination policies. The Department of Justice has increased enforcement actions against localities with discriminatory housing policies, particularly those that disproportionately affect racial minorities, women, and people with disabilities. Recommendations for Landlords If your municipality has implemented a crime-free ordinance that may conflict with federal protections, consider the following steps: 1. Review your lease agreements and policies to identify provisions that may violate federal law, even if required by local ordinance. 2. Consult with a housing attorney familiar with fair housing law and local regulations to understand your specific obligations and risks. 3. Implement individualized assessments rather than blanket policies when evaluating potential tenants with criminal histories. 4. Document all housing decisions with clear, non-discriminatory business justifications. 5. Create explicit exceptions in your policies for domestic violence victims and emergency service calls. 6. Engage with local government by attending city council meetings and advocating for amendments to problematic ordinances. 7. Join or form landlord associations to collectively address concerns with local officials. 8. If necessary, consider seeking a declaratory judgment in court to resolve the conflict between federal and local requirements. 9. Stay informed about new legal developments in this rapidly evolving area of law. Navigating this legal minefield is challenging; however, landlords should prioritize compliance with federal civil rights laws. When local ordinances and federal protections conflict, federal law generally prevails. By taking proactive steps to ensure fair housing practices, landlords can protect themselves from liability while also supporting safe, stable housing for all community members.

HUD Publishes 2025 Income Limits

On April 1, 2025, HUD published the 2025 income limits for HUD programs and the Low-Income Housing Tax Credit and Tax-Exempt Bond programs. The limits are effective on April 1, 2025. The limits for the LIHTC and Bond projects are published separately from those for HUD programs. For better understanding, LIHTC and Bond properties operate under the Multifamily Tax Subsidy Project (MTSP) limits. These properties are 'held harmless' from income limit (and therefore rent) reductions. This means that these properties may use the highest income limits for resident qualification and rent calculation since the project has been in service. However, it's important to note that HUD program income limits are not 'held harmless '. HUD publishes the 50% and 60% MTSP limits alongside the Average Income (AI) limits, which are set at 20%, 30%, 40%, 50%, 60%, 70%, and 80%. Projects that began service before 2009 may utilize the HERA Special Income Limits in areas where HUD has published such limits. Projects placed in service after 2008 cannot use the HERA Special Limits. Projects in rural areas not financed by tax-exempt bonds can use the higher MTSP limits or the National Non-Metropolitan Income Limits (NNMIL). It is important to note that for 2025, HUD has made changes to the definitions of geographic areas as determined by the Office of Management and Budget (OMB). The counties or towns within certain metropolitan areas may have changed. Owners and managers should consult the HUD Area Definition Report for a list of their areas and their components. The link to the Area Definition Report can be found on the website provided below. Owners of LIHTC projects may rely on the 2024 income limits for all purposes for 45 days after the effective date of the newly issued limits, which ends on May 16, 2025. The limits for HUD programs may be found at www.huduser.gov/portal/datasets/il.html. The limits for LIHTC and Bond programs may be found at www.huduser.gov/portal/datasets/mtsp.html.

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