Homeownership Alliance Policy Agenda

 

Homeownership Alliance Policy Agenda

It is time for a renewed effort to boost the homeownership rates among people who have been shut out of the primary path to build assets in the U.S.  There is no investment alternative that is as beneficial as homeownership for wealth building for Americans.  Unfortunately, the benefits of homeownership are not evenly distributed throughout our society.

To read more about why we need policy changes to lessen economic inequality, click on Homeownership Case 2021

The Homeownership Alliance supports the creation of new resources to support affordable homeownership as well as incremental reforms in existing to programs to make them produce more affordable homes.  The nonprofit developers and lenders that lead the Homeownership Alliance are working to prepare families for homeownership and finance, renovate and develop affordable homes that are assets for communities and the families that live in them.   These policy recommendations are informed by Homeownership Alliance members’ experiences working to expand opportunity for low- and moderate-income families.

New Policies 

The Homeownership Alliance supports these new ideas to expand affordable homeownership:  the Neighborhood Homes Investment Act, the Restoring Communities Left Behind Act,  and new emphasis on homeownership in Community Development Financial Institutions Fund programs:

Homeownership Alliance Policy Agenda 2021 

Improvements in existing programs

Federal Home Loan Bank System

The Federal Home Loan Bank System was created during the Great Depression to provide reliable liquidity to lenders for home mortgages and community investments.  The 11 Federal Home Loan Banks are member-owned cooperatives that collectively borrow in the capital markets to make loans to members.   This is an underutilized resource that should be tapped as a source of low-cost, long-term capital for homeownership lending and development.

Federal Home Loan Bank System 2021

Capital Magnet Fund

The Capital Magnet Fund was created in 2008 to be a source of flexible capital for affordable housing developers to leverage with other funds.  It can be use for both affordable rental housing and homeownership, with preference for projects that serve lower income residents.  Program reforms would make this resource easier to use for homeownership.

CMF Policy Recommendations 2021

New Markets Tax Credits

The New Markets Tax Credits attract capital investments to distressed neighborhoods by giving investors in businesses in these neighborhoods credits on their federal taxes equal to 39% of their investment over seven years.   An innovative use of the power of this tax incentive is to finance real estate construction companies that build affordable homes in qualified neighborhoods.   This use should be encouraged.

NMTC memo 2021

Property disposition

Currently there is a serious inventory shortage of lower priced, high quality single family homes for potential homebuyers.  Government policies regarding delinquent loans and foreclosed homes could be improved so that these properties can benefit families and neighborhoods.

REO Policy Options 2021

HOME 

HOME is an affordable housing program administered by states and localities that can be used for rental housing or homeownership.  HOME use for homeownership projects has been declining in recent years, but with some streamlining of the HOME regulations, this resource could create more homeowners.

HOME Program Recommendations final

Homeownership Alliance Comment Letters

Harris letter February 2021 final

CMF Request for public comment 2021 Final

NMTC letter to CDFI Fund 2021