Tuesday, August 25, 2020

Comparing the Candidates: Real Estate Issues

To say that there are strong feelings about this year's election would be an understatement. There's a lot to pay attention to, but let's take just one issue today and break it down. How do Trump and Biden approach housing issues?

Discrimination

  • Trump repealed the Affirmatively Furthering Fair Housing Rule, which requires jurisdictions that receive federal housing funds to assess any patterns of discrimination and plan to diminish them. Advocates say that the rule gave HUD the teeth to enforce provisions of the Fair Housing Act of 1968. Trump pursues actions that generally loosen regulations for various industries, and has stated that the AFFHR represents further government encroachment.
  • Biden, on the other hand, plans to use legislation to enforce fair housing policy, although he does want to prohibit certain local exclusionary zoning laws. He's interested in creating a Homeowner and Renter Bill of Rights to add more consumer protections in the lending process and housing access.

Affordability

  • The AFFHR repeal also broadens the definition of affordable housing and allows jurisdictions more leeway to decide what actions they need to take, if any. HUD Secretary Ben Carson says it will reduce the barriers to compliance for cities and developers. Critics say the subjectivity will scale down efforts to provide affordable housing. Trump's 2017 tax cuts also included incentives for developers to build in "opportunity zones." 
  • Like Trump, Biden takes a supply-and-demand approach to housing affordability. He has stated that he would invest $640 billion over the next 10 years to both provide direct financial assistance to consumers and increase support of other initiatives that address efficiency and accessibility.

Taxes

  • Trump's tax plan also limited the amount of state and local property taxes that people could deduct on their federal tax returns. The effects of this action were predominately felt in higher priced housing areas such as New York and San Francisco where mortgages regularly exceed the new cap.
  • Biden has said, if elected, her will roll back Trump's tax cuts. He has also mentioned enacting a $15,000 tax credit for first-time homebuyers.

Renting

  • The administration mandated a 4-month moratorium on evictions for federally assisted properties during the COVID crisis. His most recent order did not extend the moratorium but encouraged landlords to try to find ways to work with tenants to allow them to stay.
  • Biden would encourage localities to create "eviction diversion programs" including mediation and payment plans. He would also like to provide tenants facing eviction with legal assistance. He is calling for rental relief for those suffering from the coronavirus.

Homelessness

  • Trump has been very vocal in his criticism of the California governor and mayors in their handling of the homelessness crisis in that state. The coronavirus relief packages included nearly $3 billion in homeless assistance funding. 
  • Biden is taking a "housing first" strategy to address homelessness, calling for housing funding, vouchers and special programs for certain groups like veterans and the disabled.


I would love to help you with your real estate journey. 
Please contact me at 303-917-7143 or robbin@elevatedrealestate.com

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