The National Housing Crisis Task Force, a bipartisan coalition of practitioners and policymakers, has released a comprehensive federal policy agenda to address America’s deepening housing crisis. The report, released in November 2024, and titled “From Crisis to Transformation: A Federal Housing Policy Agenda,” outlines 40 specific policy recommendations organized around five key themes. It calls for immediate federal action to address acute and structural housing challenges. The report is intended to serve as a roadmap for the incoming Trump administration’s approach to the affordable housing crisis.
The Scale of the Crisis
According to the report, the housing crisis in America has reached critical levels:
- Home prices have doubled in the last decade
- Nearly half of all renters are cost-burdened
- Homelessness has hit record highs
- The median house is now 45 years old, with significant maintenance needs
- Housing construction is down 60%, while population has grown 65%
Core Policy Recommendations
The Task Force organizes its recommendations into five strategic areas:
1. Lead and Focus the Nation
- Create a Housing Crisis Council in the White House
- Develop national housing production goals
- Implement real-time housing market data tracking
- Address the property insurance crisis
- Ensure Fair Housing Act compliance
2. Reduce Barriers to Production and Eliminate Complexity
- Modernize HUD programs for faster housing production
- Unlock Department of Transportation and Energy programs for housing
- Reform housing choice voucher programs
- Streamline federal land disposition for affordable housing
- Update building codes and regulations
3. Mobilize Federal Capital for Production & Preservation
- Authorize new financing mechanisms through Fannie Mae and Freddie Mac
- Provide low-cost debt for mixed-income housing developments
- Expand access to financing for housing agencies and CDFIs
- Create grants for adaptive reuse of buildings
- Reform and expand the Low-Income Housing Tax Credit
The recommendations related to the Low-Income Housing Tax Credit (LIHTC) include:
- Expand the 9 Percent Credit: Increase the 9 percent LIHTC available nationally to address rising housing costs and build more affordable homes.
- Exempt Affordable Housing from the State Private Activity Bond Cap: Lift the artificial limit on the number of tax-exempt Private Activity Bonds (PABs) issued in each state to finance affordable housing projects.
- Increase the “Basis Boost” for Difficult Development Areas: Authorize an increase in the Basis Boost for DDAs, Native American housing, Extremely Low-Income housing, and rural areas from 30 percent to 50 percent.
- Streamline Income Verification: Simplify the income verification requirements for prospective tenants of deed-restricted affordable units to reduce administrative burdens and increase accessibility. The provision also recommends excluding the Basic Allowance for Housing (BAH) for all military members.
- Strengthen Cost Oversight Provisions: States should be required to consider cost reasonableness as part of their selection criteria when determining which developments will receive LIHTC allocations each year.
These recommendations aim to adapt and expand LIHTC to effectively meet the current housing crisis.
4. Innovate with an Industrial Policy Lens
- Develop a national housing industrial strategy
- Create a Housing Innovation Unit within HUD
- Establish national building codes for modular housing
- Support construction workforce development
- Research and implement cost-reducing building practices
5. Provide a Housing Safety Net
- Make housing choice vouchers available to all eligible households
- Invest in immediate homelessness solutions
- Create tax credits for rent-burdened households
- Provide $100 billion for affordable housing rehabilitation
- Implement new affordability measures
Implementation Timeline
The Task Force proposes a one-year roadmap with specific actions:
- Day One Executive Actions: Including creating the Housing Crisis Council and ordering the development of a national housing strategy
- First 100 Days Legislative Priorities: Including emergency appropriations and authorization legislation
- Year One Administrative Actions: Including regulatory reforms and program modernization
- Tax Reform Priorities: Including expanding housing tax credits and creating new incentives
The Federal Role
The report emphasizes that the federal government is uniquely positioned to address the housing crisis through:
- Coordinating across multiple agencies and departments
- Providing substantial capital resources
- Setting national standards and goals
- Creating incentives for state and local action
- Protecting vulnerable populations
Looking Forward
The Task Force emphasizes that while immediate action is crucial, creating lasting change requires:
- Permanent commitment to housing as a national priority
- Partnership with state and local governments
- Engagement with private and civic sectors
- Focus on both supply expansion and affordability
- Investment in innovation and workforce development
The report concludes that treating the housing crisis like a true crisis requires immediate federal action and long-term structural reforms. Success will require coordination across all levels of government and sectors of society, with the federal government playing a crucial leadership role in driving transformative change in America’s housing ecosystem.