The presidential election—and the policies proposed by each candidate—will have significant implications for the multifamily industry. From housing affordability to regulatory reform, the candidates have staked out distinct platforms on a variety of key issues of significant importance to owners and operators of apartment communities.
As of the drafting of this article, it is still unclear which candidate will win election. The National Multifamily Housing Council (NMHC) remains focused on analyzing proposed policies put forth by both candidates and advocating for the nation’s multifamily industry. To that end, NMHC recently published an analysis of former Vice President Biden’s tax proposals. In this article we provide a comprehensive review of both candidates’ housing plans and, specifically, key provisions impactful to the multifamily industry.
Where Do They Stand?
Although the Trump administration has not issued a comprehensive housing plan ahead of the election, we can look at past choices on housing policy to get a picture of what we might expect from a second term. A major focus of the Trump administration has been regulatory reform, and, when it comes to housing, this administration has sought to identify ways to remove barriers to development. The creation and promotion of the Opportunity Zones program, enacted as part of the Tax Cuts and Jobs Act, represents a central element of this strategy. The following provisions are key housing-related provisions proposed under the Trump administration:
- Reducing barriers to developing and preserving affordable housing;
- Replacing several Obama administration-era housing discrimination rules, namely the Affirmatively Furthering Fair Housing (AFFH) and the disparate impact rules;
- Promoting the Opportunity Zones tax incentive designed to attract investors to neglected neighborhoods; and
- Reforming and streamlining Department of Housing and Urban Development programs to incentivize greater private-sector participation and public-private partnerships.
Former Vice President Biden released a comprehensive housing plan earlier this year that commits to investing $640 billion over 10 years in programs to “promote housing that is affordable, stable, safe and healthy, accessible, energy efficient and resilient, and located near good schools and with a reasonable commute to their jobs.”
Biden’s housing proposal, which can be found on his campaign website, lists the following four principles and then provides details on how he intends accomplish these stated goals:
- Ending redlining and other discriminatory and unfair practices in the housing market;
- Providing financial assistance to help hard-working Americans buy or rent safe, quality housing, including down payment assistance through a refundable and advanceable tax credit and fully funding federal rental assistance;
- Increasing the supply, lowering the cost, and improving the quality of housing, including through investments in resilience, energy efficiency, and accessibility of homes; and
- Pursuing a comprehensive approach to ending homelessness.
What Comes Next?
While both President Trump and former Vice President Biden are proposing to modify programs and policies that will impact multifamily housing, these will have to be adopted either through the legislative or regulatory processes. President Trump’s agenda includes significant regulatory proposals, many of which could be adopted through executive orders and without congressional approval, such as the recent CDC eviction moratorium, which NMHC has strongly opposed. In contrast, a large portion of Vice President Biden’s proposals would require legislative action.
The successful enactment of these proposals during a potential Biden presidency would depend on several factors. While Democrats are likely to retain control of the House of Representatives, a Democratic Senate majority is uncertain. Moving the Biden agenda through a Republican Senate or even a narrowly controlled Democratic Senate could prove challenging due to the fiscal impact of some of the provisions. In addition, the vice president’s ambitions for housing policy proposals may have to be reshaped to fit into a domestic legislative agenda focused on COVID-19 relief, infrastructure, and health care.
At a time of deep partisanship, it should be no surprise that Democrats and Republicans hold starkly different positions on a number of critically important issues. NMHC government affairs analyzed the candidates housing proposals important to the multifamily industry. The full policy breakdown and the industry’s point of view can be found here.
