Center for American Progress outlines plan to reduce housing costs

"The plan has three main components: removing barriers to construction, boosting affordable home production and reducing other housing-related costs. As a remedy, CAP is suggesting reformation to local zoning laws, incentives to local jurisdictions to approve more housing, and expansion of modular and manufactured housing. The federal government can't make you change your zoning requirements, so we designed a program to create strong incentives and disincentives to get more and more communities to undertake the actions to make it faster to build, Negron said."

"Generally, that can allow for smaller lot sizes, allowing for accessory dwelling units or allowing for more types of construction to be done rather than requiring a zoning change. The proposal also calls for creating a federal innovation agency, dubbed ARPAHome, to support efficient construction methods. The main concern is that post-2008, home construction really fell off a cliff, and we really haven't recovered yet, Negron said."

"Key recommendations include lowering costs for builders by exempting certain building materials from tariffs, along with reforms to mortgage financing through the government-sponsored enterprises Fannie Mae and Freddie Mac to enhance liquidity and securitize construction-to-permanent loans. In a climate where you also have higher interest rates, where your labor force is being squeezed by very aggressive immigration enforcement, all of these costs add up, and this is one that is entirely self-inflicted, Negron said."

The plan focuses on removing construction barriers, boosting affordable home production, and reducing housing-related costs. It proposes zoning reform incentives for local jurisdictions, allowances for smaller lots and accessory dwelling units, and expansion of modular and manufactured housing. It calls for a federal innovation agency, ARPAHome, to support efficient construction methods. Recommendations include exempting certain building materials from tariffs to lower builder costs and reforms to Fannie Mae and Freddie Mac to enhance liquidity and securitize construction-to-permanent loans. The plan notes post-2008 construction decline, rising interest rates, and labor pressures from aggressive immigration enforcement that increase housing costs.

Read at www.housingwire.com