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I have a new policy brief out on the Biden housing plan: https://www.mercatus.org/publications/housing/opportunities-better-federal-housing-policy-how-biden-administration-and
The Biden plan endorses the Booker-Clyburn HOME Act, one of several recent bills that would encourage localities to reform their zoning restrictions in order to receive federal grants.
But none of the bills that have been introduced so far are optimally designed to encourage zoning reform. Here are the principles they should follow:
1) Funds intended to encourage reform should be available to all localities that do land use planning and issue building permits
1) Funds intended to encourage reform should be available to all localities that do land use planning and issue building permits
2) Funding decisions should be based on housing market outcomes. The proposals so far would encourage localities to select a reform from a list, such as allowing ADUs to be built or reducing parking requirements...
...But localities that wish to be exclusionary can adopt a reform from a list without actually permitting more housing to be built.
3) Local policymakers should have wide latitude about what they spend these funds on. Their purpose is to be enticing enough to encourage reform. In this respect, Community Development Block Grants are a good model.
The Biden plan proposes expanding Section 8 vouchers to all households who are eligible to receive them based on their income.
This would be a huge improvement in housing affordability for the lowest income Americans, but will also increase rents for households that earn too much for vouchers in supply constrained market. Expanding Section 8 makes local zoning reform even more crucial.
. @kristoncapps covers Rep. Fudge's confirmation hearing and some of the ideas in my policy brief here: https://www.bloomberg.com/news/articles/2021-01-29/marcia-fudge-wants-to-transform-u-s-housing-rights
