How Would a Government Shutdown Impact Homeowners and Future Buyers?
By: American Property Owners Alliance
Sep 11,
2020
Everything you need to know if lawmakers cannot come to a federal-spending conclusion by September 30th.
What is a government shutdown?
Before October 1
st, the U.S. federal government must pass appropriations bills to fund government operations for the next fiscal year. If lawmakers cannot pass the 12 appropriation bills needed to fund the government before the deadline, federal agencies must stop all non-essential functions until Congress acts, which is known as a
government shutdown. If Congress passes some of the appropriations bills, only agencies without appropriations must shut down which is known as a partial shutdown.
A government shutdown impacts federal programs that homeowners and buyers rely on. With the possibility of a full or partial shutdown looming, we’ve compiled a list of potential impacts on federal loans and insurance, with resources to help you navigate a shutdown should it occur.
Federally Backed Mortgages
About half of today’s mortgages are federally backed, many of which are utilized by low-income and first-time home buyers. Each federal lender has historically been impacted by government shutdowns differently:
U.S. Department of Housing and Urban Development: Federal Housing Administration and Ginnie Mae
The Federal Housing Administration will continue to insure single-family loans (except reverse mortgages and Title 1 loans) during a government shutdown. Loan processing times could be delayed due to agency staffing limitations as a result of a shutdown. More information on the U.S. Department of Housing and Urban Development’s processes during a government shutdown can be found
here.
Ginnie Mae will also continue to operate during a government shutdown, however staffing limitations may cause delays in response times. Click
here for frequently asked questions regarding Ginnie Mae’s functions during a federal funding lapse.
U.S. Department of Housing and Urban Development Services
The U.S. Department of Housing and Urban Development's Headquarters, regional and field offices will close for the duration of a government shutdown, with limited staff available to answer questions or concerns. In the event of an emergency, state or city housing offices can often provide referrals to local providers. Click
here for more information.
U.S. Department of Agriculture
The U.S. Department of Agriculture (USDA) does not issue new loans or grants during government shutdowns. Although lenders may close loans with outstanding commitments, the USDA cannot guarantee these loans until employees return to work. Click
here for more information on the USDA’s operational procedures during a federal funding lapse.
Department of Veteran Affairs
The Department of Veteran Affairs continues to process VA loans during government shutdowns. This means your loan application or payout should not be impacted by a government shutdown. More information can be found
here.
National Flood Insurance
The
Federal Emergency Management Agency (FEMA) recently
announced that its National Flood Insurance Program (NFIP) will not be able to issue new policies if it’s authorization lapses as a result of a government shutdown. The NFIP will continue to pay out valid claims until funding depletes, but if the program runs out of funds before new legislation is agreed upon, no new policies can be written and existing policies cannot be renewed. However, decision makers could advance a short-term federal spending bill in September, which could fund the program in the interim while full-year appropriations legislation is negotiated. Currently, the NFIP is funded through September 30.
Home sales in some areas could be impacted by an NFIP authorization lapse, as many mortgage companies will not approve loans without flood coverage. But even though the NFIP is the most commonly used flood insurance program, homeowners and future buyers may have other options; private flood insurance companies also offer coverage that would not be impacted by a government shutdown. Learn more about private flood insurance options
here.
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Protecting and Expanding America’s Affordable Housing Supply
By: American Property Owners Alliance
Sep 06,
2020
America faces a housing shortage unlike ever before. Years of underproduction and underbuilding have resulted in skyrocketing housing costs, a decline of
about 4.7 million affordable apartments, and an insufficient supply of
about 1 million homes on the market, compared to the 4 million available in 2007.
Large investors, private equity firms and other corporations are escalating affordability challenges by purchasing large portions of residential property as profit making ventures. These groups charge high rent or sell at prices unaffordable for most Americans, and they’re less willing to negotiate affordable rental agreements.
Ensuring there are enough affordable rentals to meet demand is critical, especially for Americans who want to save for a downpayment and access the benefits of homeownership. To close the supply-demand gap, we must incentivize development of more affordable rental properties and protect local housing providers who contribute
more than 40% of all rental housing today and are more likely to negotiate affordable rent.
These small,
mom-and-pop landlords—those who own properties of about one to four units in their local community and conduct the day-to-day management—are more likely to provide
naturally occurring affordable housing (NOAH). NOAHs are multifamily rental properties that are affordable to low-income households without a public subsidy attached. Large investors are less likely to provide these affordable rentals without government incentives because they can afford to have a “this is the rent, take it or leave it” mentality.
Today, NOAHs account for most affordable housing units across the United States. Preserving and expanding NOAHs is critical to ensuring Americans can access affordable rentals now and into the future. Supporting local housing providers is a key pillar of this effort.
Unfortunately, NOAHs are at risk due to ongoing effects of the COVID-19 pandemic, which exacerbated the housing affordability crisis and put economic strains on millions of households and their landlords.
As housing providers
share their stories with us to help bring the challenges they face to light, Nathan R. of Chicago stated, “Now, people that used to live here [Chicago] are being priced out not just of homeownership, but rental housing too… Our renters are often working two jobs just to pay for the now $995 one-bedroom rent.”
Megan E., a housing provider in Los Angeles, shared, “I own rent controlled units in the city of L.A. During the Covid era rent freeze and eviction moratorium, I have lost thousands of dollars and have found it difficult to make necessary repairs. The city has shown complete disregard for the small business housing providers like myself. We already had significantly below market rents before the pandemic due to the strict rent control laws in place. With the rent freeze, we’ve seen operating costs skyrocket with record inflation year after year. Freezing all increases since our last increase in 2019 has meant net operating income has fallen significantly.”
You might think rent control is the best solution to avoid rising rents. However, economists have studied the
impact of rent control across a number of markets and drawn the same conclusion: rent control actually decreases affordability in the long run. You heard that right—rent control is a band-aid solution that undermines small housing providers’ ability to maintain NOAHs and stalls the development of additional housing stock by taking away incentives for developers.
The right path to housing affordability is to provide targeted assistance to renters who are facing economic distress and invest in increasing America’s housing stock to close the supply-demand gap.
Fortunately, there are
long-term solutions on the table right now that can support renters and protect and expand America’s affordable housing stock:
- Providing direct, targeted assistance to renters facing economic distress will help stabilize households and properties and set individuals up for financial success when entering the market.
- Creating housing grant programs to help pass pro-housing policies at the state and local levels will remove regulatory barriers so more homes can be built faster.
- Passing the Neighborhood Homes Investment Act would create a new federal tax credit to incentivize the development and renovation of family housing in the communities that need it most, putting about 500,000 more family homes on the market in the next decade.
- Passing the Revitalizing Downtowns Act would create a tax credit to convert unused office buildings into residential, commercial and retail spaces, adding more affordable housing units to the market.
By pushing forward these solutions, we can not only tackle today’s housing crisis, but we can help the small, local housing providers continue to serve their communities in the most effective ways possible. Here are two things you can do today to support our effort:
- Visit our Action Hub to add your voice in support of pro-housing solutions.
- Housing providers, share your story and help policymakers understand the challenges you face and the most effective solutions.
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Financial Education Support Can Improve Black Homeownership Rates
By: Colin Allen, Executive Director of the American Property Owners Alliance
Aug 25,
2020
Thousands of Black Americans are
leaving large metropolitan areas like New York City, Los Angeles and Chicago for growing communities throughout the South.
In North Carolina, about
44,250 Black residents moved to Charlotte’s Mecklenburg County in 2021, now accounting for 35.2% of Charlotte’s population and
22.3% of the entire state’s. In Georgia, the population of Black residents has
nearly doubled in the past 30 years, totaling more than 3 million residents according to the 2020 census. To top that,
Texas recently surpassed Georgia as having the highest number of Black residents with about 3.4 million individuals, according to Pew Research Center.
Factors such as the cost of raising children, accessibility and quality of life, coupled with the stability provided by Fortune 500 companies headquartered throughout the region, make these southern states an appealing place to live. However, one area in particular is creating challenges when relocating: the housing market.
According to the
National Association of REALTORS®, the gap in the Black-White homeownership rate is the largest it’s been in decades, with only 44% of Black Americans owning a home, compared to the 72.7% of White Americans.
As the South’s popular metro areas continue to grow, housing supply can’t keep up with demand. Rising mortgage rates on top of regulatory barriers, infrastructure limitations, high costs to build, and general resistance to new construction have driven up property values and limited the availability of affordable homes.
In addition to supply constraints, other factors have disproportionate impacts on minority residents. Nationally, young Black Americans
have lower credit scores than their white counterparts, making it harder to qualify for loans at affordable rates. What’s more, college debt is creating a barrier to homeownership for many:
36% of U.S. millennials say their college debt is a major obstacle to saving for a down payment.
According to the
Center for Responsible Lending, for a variety of reasons, borrowers who attended historically Black colleges and universities are disproportionately burdened with debt, making it more difficult to build wealth through homeownership or invest in retirement funds.
Pursuing a college education shouldn’t come at the cost of owning a home. These are milestones that should only put Americans on the path to more wealth-building opportunities.
While there are many
resources to assist homebuyers and current homeowners—including the Financial Literacy and Education Commission’s budgeting tools, the Federal Student Aid’s resource hub, and various grant programs and housing counselors—we need a more proactive approach to helping young buyers understand the role of credit in the home buying process.
As executive director of the
American Property Owners Alliance (The Alliance), I dedicate a great deal of time advocating for local, state and national policy solutions that remove barriers to homeownership and increase housing supply. It’s critical that our leaders prioritize resources that support Black residents long before the home buying process begins. As more individuals and families put down roots in growing areas, some may want additional support in learning how to build credit and manage debt so they can ultimately position themselves to purchase a home and build generational wealth.
They should be able to find the support they need, easily.
At The Alliance, we’re calling on Congress to support three bipartisan solutions that will aid buyers on multiple fronts and unlock more equitable access to homeownership.
First is expanding pre- and post-purchase consultation to provide buyers with more direct support at every step of the homebuying journey, from saving for a downpayment to securing homeowners insurance. Next, is implementing alternative credit modeling that’s based on your bill and rent payment history, not solely on credit scores. This way, buyers can have competitive access to mortgage loans. Lastly, developing downpayment assistance programs will help buyers secure an affordable home, and creating incentives for current owners to sell to first-time buyers will help expand the marketplace.
These efforts, combined with even more creative housing policy solutions and assistance programs, will set up all first-time homebuyers for success.
People are moving to their desired communities with hopes of upward mobility, and homeownership is a major component of that dream. By expanding financial education resources for today’s buyers and those to come, we can create a foundation for homeownership to thrive for generations.
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Executive Director Newsletter Q3 2023
By: Colin Allen, Executive Director of the American Property Owners Alliance
Jul 21,
2020
The American Property Owners Alliance is focused on advancing solutions to improve protections for homeowners and address housing affordability issues across the nation. Read more below about the actions we’ve taken recently to combat
Home Equity Theft, provide the Federal Housing Finance Agency with input as they consider new multifamily protections and to explore potential opportunities for new tenant protections backed by the federal government, and recognize the ongoing value of homeownership in June.
Calling for an End to Home Equity Theft
The Alliance remains committed to ending the practice of home equity theft everywhere it remains legal. In several states, local governments are authorized to take beyond what is owed in property taxes when a homeowner falls behind and underpays, robbing homeowners of the wealth they’ve built over a lifetime.
The Alliance is working to end this unethical practice in 10 states and Washington D.C. where it is remains on the books. A recent survey conducted by The Alliance concluded that a majority of respondents oppose the practice. I recently partnered with Pacific Legal Foundation to share
our opinion with the
Boston Herald about how this practice impacts homeowners in Massachusetts and nationwide.
State legislators should begin crafting legislation now to close all loopholes allowing a practice that undermines the value of homeownership and the financial benefits that come with it.
Read our opinion piece in the Boston Herald.
Federal Housing Finance Agency Multi-Family Tenant Protections Comment Portal
Housing providers play a key role in creating opportunities for upward mobility for tenants by helping them access safe, affordable homes. In May, the Federal Housing Finance Agency (FHFA) published a Request for Input (RFI) to investigate issues tenants residing in multi-family properties face and to explore new tenant protections backed by the federal government.
Earlier this year, the White House directed the FHFA in its
“Blueprint for a Renters Bill of Rights” to “identify the opportunities and challenges of adopting and enforcing tenant protections including policies that limit egregious rent increases at properties with enterprise-backed mortgages.”
Through the end of this month, the FHFA is collecting input from tenants and multifamily housing providers, as well as other stakeholders, to identify these challenges and inform policies related to rent increases, source of income, communication timeframes, causes for eviction and more.
Providing perspective from housing providers is critical at this moment, please visit our page to share your input before the July 31 deadline.
#UnlockingHomeownership Wins During National Homeownership Month
During the 21st National Homeownership Month, we celebrated the ongoing value of homeownership and took action on key issues that will unlock more value for current owners and broader access to homeownership. Some key wins included:
🏠 Sending over 950 messages to Members of Congress in support of the
Neighborhood Homes Investment Act and
Revitalizing Downtowns Act
🏠 Adding over 5,000 new advocates to The Alliance
🏠 Gathering over 150 signatures pledging support to end home equity theft
And, while Homeownership Month has wrapped, we remain laser-focused on supporting pro-housing policies.
Visit our Action Hub to learn about key issues and add your voice.
###
For more updates, news, and resources, follow me on
LinkedIn and
Twitter.
Thank you,
Colin Allen, Executive Director
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Broadening the Path to Homeownership: A Q&A with Ready Life’s Ashley Bell
By: American Property Owners Alliance
Jul 17,
2020
The Alliance’s executive director, Colin Allen, recently sat down with Ashley Bell, Founder and CEO of
Ready Life, to discuss the role financial education plays in the homebuying journey and how expanding resources in this area can set first-time buyers up for success.
Bell leads Ready Life, a Black-owned fintech company, with the goal of equipping communities with the tools to build and preserve generational wealth. Through Ready Pay, a digital spending and payment account, customers can make financial transactions—whether buying a home or just making everyday purchases. Ready Life also offers a platform for small businesses and nonprofits, presenting a new way to accept payments. In addition, Ready Life Mortgage puts forward a new path to homeownership that doesn’t use traditional credit scores for mortgage approvals. For example, when users pay their rent on time through Ready Pay, Ready Life uses this data to underwrite a mortgage and help set families and individuals up for homebuying success.
Homeownership provides an important avenue to build wealth, but the path to owning a home today is ridden with roadblocks for many buyers. What’s more, the gap in the homeownership rate between Black and white families in America is the largest it’s been in decades:
44% of Black Americans own a home compared to the 72.7% of white Americans. It's time to not only close this gap, but to also put resources in place so all who desire to own a home one day can successfully enter the market and begin building equity.
In this Q&A discussion, Allen and Bell explore Ready Life’s work to build a more equitable path to homeownership:
Allen: What drew you into this area of banking and finance, and financial awareness?
Bell:
Credit is like water. Where credit flows, things grow, opportunity grows. Where credit doesn’t grow, things don’t. For me, it’s about those deserts—the communities, the people that don’t have access to that opportunity, to that water.
The co-founder of my company is Dr. Bernice King, and Dr. King and I have been joined at the hip at trying to make sure we can erase those deserts and bring that opportunity to the people that need it the most.
Allen: How did you and Dr. King come up with the idea of Ready Life and expanding access to credit through a new and innovative opportunity?
Bell:
Dr. King and I started working together during the Covid crisis. [….] During that time, I was promoted up to the White House to become Policy Advisor on Entrepreneurship and Innovation. In that role, I was able to coordinate and work with all of the agencies to help create and to execute what became the Payroll Protection Program (PPP), and in that, it was really tough to reach that last mile of entrepreneur, and Dr. King really had a passion there. She saw the hurt that was going on in our country and the lack of access to those federal funds. In our collaboration working together, we were able to reach many of the people that were off the grid that needed help when big banks and big companies were sucking up all the federal dollars—some using it well and some using it not so well.
During Covid, you had the culmination of a great economic crisis and also at the same time, the greatest civil unrest in our country since 1968, and her father [Dr. Martin Luther King Jr.] said around that time that there were “inseparable twins” of economic and racial injustice. You cannot separate the two—if you choose to talk about racial justice in our country, you can’t have that conversation without economic justice. So, Dr. King has been focused on her father’s work on the racial side, and I’ve been focused a lot on the economic side, and we felt that joining the two could create a comprehensive ecosystem of solutions that we hope can put a dent in the racial wealth gap, and that’s what is the nexus of what created Ready Life.
Allen: Is there a nexus between homeownership and entrepreneurship? Does having that financial security through homeownership play a role in the ability to be able to start your own business?
Bell:
Yes, it’s absolutely connected, and Ready Life is at the forefront of allowing people to be more than a credit score, to be bigger than the three digits that are attached to your name and your social security number.
Credit scores are now the proxy for the old status quo. Every number tells us that when you look at the fact that 54% of African Americans are deemed to be not worthy of having the credit to own a home. Well, that's impossible to believe that half of a race of an entire people shouldn't have a home in this country. That lets you know that numbers are off.
For people whose credit scores work for them, that's great. Keep using them. But for us, we think that there's a vast majority of people who have the cash and have the ability to pay. That was highlighted when you and I were together in Atlanta—when they showed that the average rent in Atlanta was $1,538 and mortgage was $1,500. So how can you have a system where people are paying the exact same thing, but half of them are able to create equity in their home? And that equity goes as a safety net when there's a health crisis, and when you're looking at starting a business and getting a home equity line to create wealth, generational wealth—all those things come from owning a home.
You see companies every day popping up financing cars and other unsecured debt not using a credit score. That model just hasn't been brought to the real estate market yet. We’re bridging the gap in this new world that believes that credit scores are a thing of the past, and what’s in the future, is a world where three digits don’t define you.
Allen: Are there other resources that the federal, state, and local government should be leaning into to offer opportunities like what you’re doing?
Bell:
The federal government needs to do everything it can to help create this new marketplace where we can get investors to come and pull capital, and to create alternative scoring systems to give access to credit to those people who the current system doesn't serve.
This is happening in silos all across our country now—the auto loan industry is leading it, the unsecured loan industry is leading it, and Ready Life is going to be embracing that as well. What the federal government needs to do is create a regulatory environment where every company doesn't have to reinvent the wheel every time—every company who is doing these loans, they're all coming up with their own algorithms.
The quicker we can speed up creating that marketplace where capital can flow, that credit, that water that we talked about, can reach the people that need it most. That is what the federal government can do the best.
Allen: What can first-time home buyers, who maybe aren’t ready to enter the market yet, do education- and savings-wise to prepare?
Bell:
So right now, interest rates are high, not a lot of people are buying houses, and that's on purpose. But it’s a great time to put yourself in the best position and take advantage of the market when it bounces back.
Ready Life leans into using your rent as a primary indicator of your ability to pay a mortgage. That's what current credit scores don't do. Some will take rent into consideration, may give you five points or 10 points here. But at the same time, a missed credit card payment from two years ago will affect your credit score more than paying rent for two years. That system doesn't add up for me. It doesn't add up for most Americans. So what we believe is that your rent should be a priority and other things should go to support that.
You should understand how to evaluate your credit, do the things to get your debt down, and to get your credit score up. But at the exact same time, you should also be aware of services like Ready Life, how you spend your money and what you spend it on. We can create a separate credit profile for you and work with you to be able to have a pathway to homeownership that's alternative to the current system.
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Survey Indicates Americans Want an End to Home Equity Theft
By: American Property Owners Alliance
Jun 26,
2020
Washington, D.C.—The American Property Owners Alliance (The Alliance) finds majority of respondents in a May 2023 survey oppose the practice known as
home equity theft, which allows state and local governments to keep beyond what they are owed in taxes, interest and penalties when a property owner falls behind on their property taxes and enters foreclosure—no matter how small the debt.
Property ownership is one of the most significant ways to build equity in America, but in Alabama, Arizona, Colorado, Illinois, Maine, Massachusetts, Minnesota, Nebraska, New Jersey, New York, Oregon, South Dakota and Washington, D.C., the practice of home equity theft remains legal and puts homeowner’s equity at risk. What’s more, in Alaska, California, Idaho, Montana, Nevada, Ohio, Rhode Island, Texas and Wisconsin, loopholes exist allowing this practice in certain instances.
The Alliance opposes home equity theft in all circumstances and, in March, filed an
amicus brief with the U.S. Supreme Court in support of the petitioner in Tyler v. Hennepin County, a case examining the practice in Minnesota. On May 25, the Court ruled 9-0 in favor of 94-year-old Geraldine Tyler who lost her home and $40,000 in equity due to what was originally a $15,000 debt. The Court’s unanimous decision is based on Hennepin County’s unconstitutional retaining of excess value following a foreclosure and a long-standing principle that the government cannot take more from a taxpayer than what they owe.
While this is a win for property rights and will help property owners challenge this practice armed with legal precedent, home equity theft is still on the books in 12 states and D.C.
“Those states where home equity theft is still in effect must pass legislation that will protect the equity of property owners, particularly senior citizens and other members of the community who may be more vulnerable and facing foreclosure, and close all legal loopholes allowing the government to take more than what’s owed in property taxes,” said Colin Allen, The Alliance’s Executive Director.
Consumers agree—it’s time for action.
A survey was conducted by The Alliance from May 10-16, 2023, and has a margin of error of +/-3.1%. While nearly equal numbers of respondents in each jurisdiction where home equity theft is legal were surveyed, the findings from the survey are weighted to represent the actual population of each jurisdiction relative to the others. The survey found:
- 56% of respondents had never heard of the term “home equity theft,” and 54% of respondents were unaware that this practice legally exists where they live.
- 62% of respondents describe the policy of home equity theft as unethical.
- 77% of respondents agree that state law should be changed to end the practice of home equity theft, so that going forward, only the amount owed in property taxes, interest and penalties—and nothing more—could be collected by the government or private investor.
- 74% of respondents find it unfair that under the law where they live, when the government or a private investor takes a piece of property to get the unpaid property tax dollars owed to it, they are allowed to keep not just the amount owed, but the full equity value of the home.
- 60% of respondents support a prohibition on private debt collectors profiting from seizing then selling homes where very small amounts of property tax are due.
For more information on where home equity theft occurs and how to take action to end it,
visit The Alliance’s website.
CONTACT
Amber Hord
apoamedia@propertyownersalliance.org
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National Homeownership Month Event in Dallas
By: Colin Allen, Executive Director
Jun 15,
2020
The key to #UnlockingHomeownership for more Americans is prioritizing solutions that will put more affordable homes on the market.
Recently, The Alliance partnered with Axios to lead a conversation in Dallas on equity and affordability in the housing market.
Homebuyers across the country are facing historically low housing supply coupled with high prices and a competitive market. Our conversation with industry experts focused on solutions that will put more affordable homes on the market in Dallas and other metro areas that are grappling with acute housing shortages.
Some highlights from the event include:
🗝️
Benefits of Homeownership: during National Homeownership Month and always, we recognize the value of homeownership for building wealth and strengthening communities. As I noted in Dallas, “homeownership represents independence and financial stability.” The Alliance
supports a range of policies that can unlock more access to homeownership and more value for current owners.
🗝️
The Key to Improving Housing Affordability: solutions exist to put more affordable homes on the market to address housing supply and affordability challenges head-on. Bipartisan legislation like the Neighborhood Homes Investment Act would create 500,000 available homes to help close the supply-demand gap for moderately priced homes.
Take action to make this happen today.
🗝️
Ending Home Equity Theft: When an individual falls behind on their property taxes, no matter how small the debt, home equity theft allows state and local governments to seize the property and keep the full sale amount, beyond what they are owed in taxes, interest and penalties. The only way to end home equity theft is by changing the laws that allow this practice in the 12 states and D.C. where it remains legal—
learn more.
See the full breakdown of the conversation in Dallas and learn how we’re making strides for homeowners.
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The Alliance and Axios Lead Critical Housing Discussion in Dallas
By: Colin Allen, Executive Director of the American Property Owners Alliance
Jun 13,
2020
On June 6, the American Property Owners Alliance led a discussion with Axios on housing affordability in Dallas. Guests joined in-person and virtually to hear conversations with local experts and leaders, including
David Noguera—the City of Dallas’ Director of Housing and Revitalization,
Linda McMahon—President and CEO of The Real Estate Council, and Texas State Representative
John Bryant.
I also had the pleasure of joining Axios on stage for a View from the Top segment examining barriers that prevent Americans from achieving homeownership and pro-housing solutions on the table that can address these challenges head-on.
Throughout the event, speakers discussed the lack of housing supply and the need for housing affordability in Dallas, as well as the wealth-building benefits of homeownership. With June being National Homeownership Month, there was no better time to have these conversations.
Dallas faces the challenge of effectively accommodating current residents as new ones rapidly move in—ensuring every household can not only find a home in this growing city but find one that meets their unique goals and financial needs.
The Dallas area isn’t the only area trying to navigate this obstacle as the current housing shortage impacts communities all throughout America.
According to a
survey by NerdWallet, nearly 28 million Americans began 2023 with a plan to purchase a home in the new year, yet only
about 1 million homes are available on the market today. What’s more, fluctuating mortgage rates are not only keeping buyers from entering the market, but they’re also preventing current owners from selling, limiting supply even more.
As we discussed in Dallas, prioritizing the policies that will invest in affordability and provide communities with the tools to increase supply is key to improving the path to homeownership for all.
Today, the low-income housing tax credit serves as a critical resource, providing an incentive to construct and rehabilitate affordable rental housing for low- and moderate-income households.
What’s more, on the table right now is the
Neighborhood Homes Investment Act, legislation that would renovate and rehabilitate homes in the communities most in need of investment, adding about 500,000 affordable homes to the market. On top of that, policymakers can further increase housing supply by passing the
Revitalizing Downtowns Act, legislation that would convert unused commercial and office buildings into residential and mixed-use spaces.
Those who joined us in Dallas know that homeownership is one of the most significant ways to build wealth in America—it is an investment in you, your family, your community and the country. Advancing the solutions that will both unlock more equitable access to homeownership and unlock more value for current homeowners is essential to protecting this investment for years to come. Though we discussed them in Dallas, these solutions can support all areas throughout the country facing housing shortages.
As we continue through National Homeownership Month and what’s proving to be a volatile year for the market, I look forward to seeing how the
Administration supports these policies and expands their efforts to improve homeownership in America.
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Executive Director Newsletter Q2 2023
By: Colin Allen, Executive Director of the American Property Owners Alliance
May 18,
2020
The American Property Owners Alliance has spent the past few months calling on policymakers to protect property owner rights and make homeownership more accessible for Americans. We’re also focused on sharing information and resources to help home buyers position themselves for financial success throughout the homebuying process.
Read more about The Alliance’s recent involvement in the
home equity theft debate,
supporting legislation to increase the supply of affordable homes, and
educating homebuyers during Financial Literacy Month.
Combatting Home Equity Theft
Recently, The Alliance worked in conjunction with the National Association of REALTORS® to oppose home equity theft, a practice currently legal in 12 states and Washington D.C. On April 26, the Supreme Court heard oral arguments in Tyler v. Hennepin County, a Minnesota case examining the practice of
home equity theft.
The Alliance filed an
Amicus Brief emphasizing what is at stake for property owners in this case and the importance of ending an unethical practice. Where home equity theft is legal, the government can take more than what it is owed in property taxes in the instance of foreclosure. Home equity theft affects thousands of Americans each year as has a disproportionate impact on elderly populations. Pacific Legal Foundation—who is defending the petitioner in Tyler v. Hennepin County—found more than
$860 million in life savings has been lost to home equity theft in communities across the country.
Property ownership is an important path to build wealth and home equity theft leaves individuals at risk of losing the equity they’ve built over a lifetime.
We’re calling on policymakers to find solutions that will protect the equity that property owners have built by closing all loopholes that allow home equity theft. Read more about The Alliance’s involvement in the case and the path to end home equity theft.
Supporting Solutions to Put More Homes on the Market
America is facing a severe housing shortage that demands immediate solutions to increase the supply of available homes and curb rising home prices. Right now, there is bipartisan legislation that could expand access to homeownership in communities that need it most.
The
Neighborhood Homes Investment Act would create new incentives to develop and renovate family homes to address the severe shortage of middle-income housing. Homebuyers deserve a pathway to sustainable homeownership and neighborhood stability – and the NHIA will help achieve that.
It’s time for action, learn how policymakers can take action to increase available homes on the market.
Advocating for Financial Education During Financial Literacy Month
Purchasing a home is a significant financial decision that requires preparation, planning, and financial education. From financing resources to budgeting tools and guidance from licensed real estate agents, we’re bolstering financial education and advancing housing policy solutions to set up first-time buyers for success.
The American Property Owners Alliance recently partnered with the Douglass Leadership Institute to hold an event in Charlotte, NC gathering industry experts and residents for a conversation on building wealth and preparing for homeownership. We focused on building a positive credit history, strategies for building equity through homeownership, and how to protect the equity you’ve built. Preparing for homeownership begins long before you start looking for a home. Check out our
Financial Education Hub to see what free and low cost resources are available to help you achieve your financial goals and how we can increase support for first-time buyers.
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For more updates, news, and resources, follow me on
LinkedIn and
Twitter.
Thank you,
Colin Allen, Executive Director
[rsnippet id="20" name="American Property Owners Alliance Section Only"]
Stay In-The-Know on Alliance Policy Initiatives: Sign up for The Alliance’s Executive Director newsletter.
Fill out the form below to receive quarterly email updates from Executive Director, Colin Allen, on areas of focus and progress in protecting property ownership.
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Preparing for Homeownership: Financial Education
By: American Property Owners Alliance
Apr 25,
2020
Buying a home is a significant financial decision that requires careful preparation. Financial education is key to helping you make a property investment that will build your wealth for years to come. The American Property Owners Alliance helps prospective owners like you develop skills that will help you at every step of the home buying process, from determining what you can afford to saving for a downpayment and securing the best mortgage rate.
Here are some financial education resources available to you at low or no cost to set you up for financial success at every step of the home buying journey.
Managing Your Student Debt
Student debt is cited as one of the biggest barriers to homeownership. Understanding your student loan repayment options and the assistance available to you can help you avoid fees and excess interest, putting more money in your pocket for a down payment on a home. The Federal Student Aid
resource hub provides a one-stop shop to learn about student loan repayment based on where you are in the process.
Pre-Homeownership Counseling
There are U.S. Department of Housing and Urban Development approved counselors across the country that provide advice on buying a home, renting, defaults, forbearances, foreclosures, and credit issues at low or no cost to homeowners.
Learn more about these services and
find a housing counselor near you.
Guidance from REALTORS®
Realtors are licensed real estate agents who are held to a
higher ethical standard than other brokers or real estate agents. They are members of the National Association of REALTORS ® and have access to housing market insights and data that other agents may not. Once you’ve saved for your down payment and are ready to explore mortgage lending options, a REALTOR® can help you navigate this process and make a smart property investment that will put you in the best position to build wealth. You can use
this tool to find licensed REALTORS® in your area.
Join The Alliance
Americans already face growing barriers to homeownership, from low housing supply to rising mortgage rates. Homeownership is a major component of wealth building and upward mobility, and action must be taken now to improve equity in homeownership. This starts with bolstering financial education and advancing housing policy solutions to set up first-time buyers for success.
Join The American Property Owners Alliance and follow us on
Twitter and
Facebook to get ongoing support and updates, no matter where you are in your homeownership journey
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How to make your home more energy efficient — and get a tax break too
By: Erica Werner
Apr 17,
2020
The Inflation Reduction Act, or IRA, is the most ambitious legislation ever enacted in the United States to combat climate change. Starting this year, homeowners can get new tax credits and rebates for making their abodes better for the environment. The benefits apply to big changes like installing solar panels, or smaller ones like swapping a gas stove for an induction range.
The benefits vary depending on your income, and additional benefits may be available where you live, so it’s worth checking with a tax expert, a consumer guide or a credible source like the Congressional Research Service or the Bipartisan Policy Center.
Here are some of the ways you can outfit your environmentally smart dream home — often with help from the IRA.
Read the full article in The Washington Post
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Congress Has Another Chance to Pass the Neighborhood Homes Investment Act
By: American Property Owners Alliance
Apr 17,
2020
Today,
about 1.3 million homes are available on the market compared to the 4 million in 2007. America is facing a serious housing shortage that demands immediate solutions to increase the supply of available, affordable homes.
Right now, there is bipartisan legislation that, if passed, would expand access to homeownership in communities that need it most. Reintroduced this March and cosponsored by Sens. Todd Young (R-IN), Ron Wyden (D-OR), Jerry Moran (R-KS) and Sherrod Brown (D-OH), the
Neighborhood Homes Investment Act (NHIA) would create 500,000 available homes to help close the supply-demand gap for moderately-priced housing.
Last year, The Alliance amplified voices across America to put pressure on Congress to pass the NHIA in year-end legislation. Our campaign resulted in 1,086 individuals taking action, leading to a total of 4,170 interactions with members of Congress via an email or tweets. Though the NHIA did not pass in 2022, it is back on the table this year and we’re encouraging Americans once again to advocate for this crucial pro-housing policy.
What is the Neighborhood Homes Investment Act?
The NHIA would create new incentives to develop and renovate family homes—a critical solution to address the severe shortage of middle-income housing. This solution helps close the gap in housing supply and demand while also strengthening communities.
The passage of this solution will support multiple sectors of the economy by spurring billions of dollars in development activity, wages and salaries, and federal, state and local tax revenues. It also supports upwards of 33,000 construction- and construction-related jobs.
Why It’s Time for Action
Across the country, empty or poorly maintained homes contribute to declining property values. In many neighborhoods, it often costs more to build or renovate a house than what the property would sell for. Instead of abandoning these homes altogether, the NHIA would provide builders with the tools they need to bring more affordable homes to the market.
Homebuyers deserve a pathway to sustainable homeownership and neighborhood stability. By passing the NHIA, we are one step closer to achieving just that.
This pro-housing policy can help improve access to affordable homes in your community and across America. Right now, we can amplify our voices to make sure the new Congress hears us loud and clear.
The Alliance is here to help current and future homeowners access a property that meets their needs, and to help you navigate the decisions that are still on the table to do so.
As Americans face economic uncertainty, we must protect the rights of current property owners and ensure access to ownership opportunities for potential buyers.
Executive Director Newsletter Q1 2023
By: Colin Allen, Executive Director of the American Property Owners Alliance
Mar 17,
2020
Over the last two months, the housing market continues to shift. The current landscape poses challenges for buyers and sellers at all stages in the homeownership journey. With low availability of homes on the market coupled with rising mortgage rates, buyers face challenges. As the cost of living continues to rise, renters and homeowners alike are facing economic obstacles.
Read below for ways that The Alliance is involved in addressing the housing supply and affordability crisis, advocating on behalf of property owners, and restoring tax incentives for homeowners.
Tackling the Housing Supply & Affordability Crisis
The housing affordability crisis remains top of mind for buyers, housing providers, and current owners. Across the nation, there’s a missing middle of housing - or lack of diverse housing options beyond single family homes and large apartment buildings convenient to public transportation and other community services. The Alliance is working to make housing more affordable and accessible while protecting property rights and continuously advocating for policies that will alleviate the crisis.
Proposals like rent control ordinances decrease the supply of low- to mid-range housing units over time because developers are less likely to build in rent-controlled areas. Policies supporting rent control also place a large financial burden on small housing providers, creating additional challenges to maintain buildings and invest in updates on top of current inflation. The Alliance supports more effective and sustainable alternatives for closing the missing-middle gap such as modernizing zoning and creating new tax credits so builders can quickly increase housing stock and turn unused office spaces into residential units creating more affordable properties for renters and buyers.
From housing grants to new incentives to build and rehabilitate middle income homes,
solutions exist, and we’re committed to pushing for ways to make homes more affordable.
Read more about our thoughts on the rent control discussion and about
three solutions to increase access to homeownership and revitalize communities.
Advocating for Property Owners
As an alliance committed to protecting the interests of current and aspiring property owners, we recently joined the National Association of REALTORS® and a host of other organizations to oppose property tax foreclosure laws which allow local governments and private businesses to keep home equity beyond what is owed in taxes, interest, and penalties rather than returning that equity to the original owner.
Homeownership is one of the best tools to build equity and wealth. We denounce the unconstitutional practice of home equity theft, meaning the unfair collection of home equity above what is owed in unpaid property taxes as part of a foreclosure settlement, as it strips families of significant savings and wealth built through property ownership.
Property ownership strengthens our communities and boosts the economy.
Read more about our request to the Supreme Court to protect property owners and their financial security.
Coming Up: Tax Season
Tax season is here, and some policies to propose a national sales tax on the use or consumption of taxable property or services have been introduced through the Fair Tax Act of 2023.
The Fair Tax Act would restructure the nation’s tax system and significantly increase the national debt. While this bill would eliminate the IRS and the income tax, it would impose a 23%, or higher, tax on your home at the time of sale. As an alliance committed to protecting property owners’ rights, we have serious concerns with the potential impacts of this Act. Learn more about this
legislative proposal.
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For more updates, news, and resources, follow me on
LinkedIn and
Twitter.
Thank you for your time,
Colin Allen, Executive Director
[rsnippet id="20" name="American Property Owners Alliance Section Only"]
Stay In-The-Know on Alliance Policy Initiatives: Sign up for The Alliance’s Executive Director newsletter.
Fill out the form below to receive quarterly email updates from Executive Director, Colin Allen, on areas of focus and progress in protecting property ownership.
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Addressing America’s Housing Crisis Requires Long-Term Solutions
By: Colin Allen, Executive Director of the American Property Owners Alliance
Mar 17,
2020
Throughout the country, a shortage of middle-income housing and affordable rentals is limiting Americans’ ability to build their savings and pursue property ownership. As inflation rises and large investors drive up rental prices for the sake of profit, America’s housing crisis will only continue to escalate if Congress doesn’t step in immediately.
With the 118
th Congress sworn in and eager to enact change, it is important to choose a sustainable path that will ensure home purchase and rental prices remain affordable for years to come. While many solutions are on the table, some are short-sighted and don’t address the heart of the issue—we need to build more housing.
Rent control has been proposed as a solution to curb the problem of housing affordability. However,
several case studies prove that rent control is an ineffective, band-aid solution that ultimately decreases the supply of affordable rentals over time and shifts the financial burden of lower rent to mom-and-pop housing providers.
The reality is, developers are reluctant to build in rent-controlled areas because of limited return on investment, which decreases the supply of low- to mid-range housing units. In areas where rent control is newly imposed, large-scale investors have proven likely to convert rentals to owner-occupied condominiums, further constraining rental supply.
In a
survey examining the effects of the 1994 rent control expansion in San Francisco, buildings where rent control was imposed were 8 percentage points more likely to be converted to higher-end, owner-occupied condominium housing than the non-rent controlled property control group. As a result of these high rental prices, fewer tenants lived in rent-controlled buildings, small multi-family housing decreased, and most rental supply catered to higher income households.
With a “this is the rent, take it or leave it” mentality, rent control and its supporters continue to reduce supply, heighten demand, undermine quality of life and limit property owners’ ability to make improvements. For example,
data spanning periods of change in rent control laws in Cambridge, Massachusetts, found rent control policies imposed about $2 billion in costs on local property owners, yet only $300 million of that cost was passed on to renters in the form of lower rent. The study indicates that rent controlled properties ultimately made the Cambridge housing market and nearby neighborhoods less desirable, and they continue to do so in cities throughout the country.
Today, we can achieve a more affordable, navigable housing market by implementing smart policies, unlike the short-sighted option of rent control. These solutions include:
- Creating tax credits to convert unused or outdated commercial and office buildings into residential and mixed-use space that will maximize the use of existing properties and create more housing units in urban areas.
- As builders have focused on high-end properties with a guaranteed return on investment, middle-income housing and affordable rentals become scarce. We should modernize zoning to remove barriers to different types of home-building.
- Increasing the low-income housing tax credit will provide states with more funding which they can then use to incentivize the construction and rehabilitation of affordable rental housing.
As an immediate measure, local governments should consider employing targeted assistance to renters and housing providers to protect the vulnerable when gaps between rising wages and rising rent occur.
By pushing forward these smart solutions, Americans can save money, support their households and move one step closer to building equity through property ownership.
The American Property Owners Alliance (The Alliance) advocates for the rights of current and future property owners. Our aim is to educate and mobilize citizens in understanding, promoting and influencing the policies that support property owner protections. We understand that we can’t close the property ownership gap overnight. What we can do is work together at the federal, state and local levels to push forward
creative, long-term solutions.
We’re playing our part in solving America’s housing crisis. It’s time for Congress to do the same.
[rsnippet id="20" name="American Property Owners Alliance Section Only"]
Stay In-The-Know on Alliance Policy Initiatives: Sign up for The Alliance’s Executive Director newsletter.
Fill out the form below to receive quarterly email updates from Executive Director, Colin Allen, on areas of focus and progress in protecting property ownership.
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NAR and The American Property Owners Alliance Oppose Home Equity Theft
By: American Property Owners Alliance
Mar 08,
2020
Washington D.C.—On March 6, National Association of Realtors® (NAR), the American Property Owners Alliance (The Alliance), filed an amicus brief with the Supreme Court of the United States opposing property tax foreclosure laws, which allow local governments to keep home equity beyond what may be owed in taxes, interest, and penalties. In Tyler v. Hennepin County, at issue is a Minnesota statute allowing the government to seize a homeowner’s property to satisfy a government debt and keep any surplus from the sale in excess of the debt owed as a windfall rather than rightfully returning it to the homeowner.
Stripping property owners’ equity interest is one of several troubling examples of government encroachment on private property rights that NAR and the Alliance defend against. Rent control measures, eviction moratoria, and tax-foreclosure laws, such as the one at issue in this case, illustrate the increase in government interventions depriving citizens of vested property interests without paying just compensation and why NAR and the Alliance are weighing in, in defense of property owners nationwide.
Property ownership remains one of the most significant ways to build financial security in America. When unexpected financial hardships occur, families and individuals should not lose the entirety of their home equity, no matter the size of the debt. In 14 states, including Minnesota, existing laws allow governments to take homes, land, and excess profits from foreclosures when property owners fall behind on their taxes, a practice known as home equity theft. This unjust, unconstitutional practice strips households of significant savings and wealth often built by individuals and families over a lifetime. In a brief to the Supreme Court, we request that the Court reverse the Eighth’s Circuit’s ruling and uphold constitutionally protected private property rights under the Fifth Amendment. The brief argues the Takings Clause does not permit the government to retain value in excess of an amount owed - taking away vested private property rights of individuals - without paying just compensation. We urge the Court to recognize this direct threat and the increase in government restrictions on private property nationwide by rejecting any attempts to divest property owners of longstanding property interests.
NAR and The Alliance support property owners on their path to building equity, and we continue to work to protect that equity after it is accrued. Abolishing home equity theft will protect the most vulnerable and improve property ownership for years to come.
Read the Amicus Brief.
CONTACT
Amber Hord
apoamedia@propertyownersalliance.org
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Homeowner Tax Deductions for 2023
By: American Property Owners Alliance
Mar 06,
2020
Tax incentives help current owners protect their investment and make homeownership more accessible for all. When filing this year, make sure you know about these new federal tax credits that will help make homes more energy efficient while reducing energy costs and demand.
Preserving and expanding tax benefits for property owners is a top priority for the American Property Owners Alliance.
Click here to see how you can advocate for tax policies that support homeowners and housing providers.
Sign up for updates and we’ll keep you informed on policy changes that impact your investment.
Click Here
[social_warfare]
5 Housing Market Myths Debunked
By: American Property Owners Alliance
Feb 23,
2020
Everchanging headlines, data and predictions make the housing market challenging to navigate. Unfortunately, misconceptions about buying, selling and owning a home remain for many Americans. The Alliance is here to dispel common myths and set the record straight on today’s housing market.
[social_warfare]
What Will The Alliance Accomplish in 2023?
By: American Property Owners Alliance
Jan 23,
2020
The American Property Owners Alliance (The Alliance) is a nonpartisan, nonprofit that was founded in 2020 to protect the interests of current and aspiring property owners. Property ownership strengthens our communities, boosts the national economy and remains one of the best tools to build wealth. Our grassroots network advances policies that ensure everyone can reap these benefits.
Last year was marked by incredible progress for The Alliance. From naming new leadership to growing our network of advocates, the successes of 2022 have strengthened our commitment to protecting and improving property ownership in America.
2022 Highlights
Colin Allen was named as The Alliance’s first executive director. With more than 17 years of policy and legislative experience, Colin brings a wealth of knowledge to this role, leading The Alliance in our mission to advance solutions that address the challenges that current and aspiring property owners face. Shortly after his appointment, Colin joined industry experts in Atlanta for
Movin’ On Up!: Preserving Affordability, Parity and Progress in Real Estate for Black Americans. There, he moderated a conversation on the policy changes that can improve access to homeownership.
2022 closed with a major push to pass the
Neighborhood Homes Investment Act (NHIA), a solution that would create new incentives for builders to develop and renovate family homes. The NHIA would address the severe shortage of middle-income housing to help close the gap in housing supply and strengthen communities throughout the country. The Alliance led a national campaign to empower individuals to unite their voices in support of the NHIA. This campaign resulted in
more than 4,000 emails and tweets sent to members of Congress urging them to pass this critical legislation.
While the NHIA did not make it into year-end legislation in 2022, we remain committed to
advocating for creative solutions that will address America’s growing housing supply and affordability crisis.
2023 Commitments
As we begin this new year, we’re building on the momentum of 2022 to influence policy changes that will protect property ownership across the U.S.
In 2023, we’re focused on growing our network of advocates and supporting creative solutions that will address America’s housing supply and affordability crisis, restore homeowner tax incentives, improve fair housing protections, and back smart infrastructure investments. Think: modernizing zoning to create more middle-income housing and converting unused office buildings into residential and mixed-use spaces.
We understand that different solutions may more effectively solve housing challenges in different areas of the country. That’s why we are facilitating discussions around these solutions, to explore which opportunities will not only increase the supply of available homes, but also ensure Americans can access and sustain housing that meets their needs and budget.
What’s more, The Alliance will continue to keep current and prospective owners informed on the policy decisions and news impacting their investment.
To get involved with The Alliance in 2023, you can
join our network and follow us on
Facebook,
Twitter and
LinkedIn.
Stay In-The-Know on Alliance Policy Initiatives: Sign up for The Alliance’s Executive Director newsletter.
Fill out the form below to receive quarterly email updates from Executive Director, Colin Allen, on areas of focus and progress in protecting property ownership.
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The rise of ‘Zoomtowns’ is going to make home prices and rents cheaper for everyone
By: James Rodriguez, Business Insider
Jan 10,
2020
It's easy to blame remote workers for the pandemic's chaotic housing market. Highly paid white-collar employees who exercised their newfound freedom and turned once cheap locales into expensive "Zoomtowns" make for vivid villains.
But a new analysis from the Economic Innovation Group, a bipartisan public-policy organization, argues that, eventually, the shift to working from home may turn into the antidote for the price spikes that we've seen. That's because the places where remote workers are flocking — the Sun Belt region in the Southern US and suburban areas outside big coastal cities — are exactly the kinds of locations that are best-equipped to build cheap housing to absorb the flood of newly remote workers.
Read the full article on Business Insider
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What Would It Take to Turn More Offices Into Housing?
By: Emma Goldberg, The New York Times
Jan 10,
2020
There’s about 998 million square feet of office real estate across the United States that’s available but in search of a tenant.
That’s thousands of old cubicles, conference rooms, pantries and cafeterias sitting in ghostly quiet. That’s a vast amount of empty space — nearly 13 percent of the market — that could be turned into two-bedroom apartments, big-box retailers, boutique hotels, community college classrooms or even studios for artists. At least that is what city governments and developers are discussing with more urgency, as researchers estimate that office value will plunge 39 percent from prepandemic levels.
What looks like a catastrophe to many building owners presents an opportunity, a possible catalyst for converting some older office spaces to new uses and transforming downtown neighborhoods into areas where people can also live, especially as the United States faces a deficit of
more than three million homes. City and business leaders from New York, Chicago, Philadelphia and Seattle last month began a series of meetings, convened by the Brookings Institution, where they will exchange ideas on re-envisioning the future of their downtown business districts.
Read the full article on The New York Times
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Guide to Low-Down-Payment Mortgages
By: Tara Siegel Bernard and Ron Lieber, The New York Times
Jan 10,
2020
It’s a perennial question for would-be home buyers: How can I possibly come up with such a huge down payment?
The short answer, usually, is you don’t have to.
Most first-time home buyers (and even many repeat buyers) don’t have the 20 percent down payment needed to qualify for the lowest mortgage rates and to avoid extra costs like mortgage insurance.
Even if you’ve managed to amass a reasonable sum, your down payment doesn’t buy you as much as it would have a year ago — mortgage rates are roughly double what they were then, and home prices haven’t deflated enough to offset those higher costs in many areas.
But it’s still possible to lock in your sale with a smaller sum, whether you’re searching for a modest home on a teacher’s salary or financing something with a hefty year-end bonus or gift. Many programs, supported in some fashion by the federal government, allow down payments as low as 3 percent or even no money down. They go by funny names and a collection of abbreviations — Fannie Mae, Freddie Mac, F.H.A., V.A. and U.S.D.A., to name a few.
Read the full article on The New York Times
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Congress Needs to Pass the Neighborhood Homes Investment Act
By: American Property Owners Alliance
Nov 21,
2020
Today, about one million homes are available on the market compared to the 4 million in 2007. America is facing a serious housing shortage that demands immediate solutions to increase the supply of available, affordable homes.
Right now, there is bipartisan legislation that, if passed, would expand access to homeownership in communities that need it most. The Neighborhood Homes Investment Act (NHIA) would create 500,000 available homes to help close the supply-demand gap for moderately-priced housing.
This pro-housing policy has over 120 bipartisan co-sponsors in the House and Senate, and there is still time for Congress to pass it before the end of the year. The Alliance is amplifying voices across America during this crucial period, putting pressure on policymakers to prioritize the passage of the NHIA.
What is the Neighborhood Homes Investment Act?
The NHIA would create new incentives to develop and renovate family homes—a critical solution to address the severe shortage of middle-income housing. This solution helps close the gap in housing supply and demand while also strengthening communities.
The passage of this solution will support multiple sectors of the economy by spurring billions of dollars in development activity, wages and salaries, and federal, state and local tax revenues. It also supports upwards of 33,000 construction- and construction-related jobs.
Why It’s Time for Action
Across the country, empty or poorly maintained homes contribute to declining property values. In many neighborhoods, it often costs more to build or renovate a house than what the property would sell for. Instead of abandoning these homes altogether, the NHIA would provide builders with the tools they need to bring more affordable homes to the market.
Homebuyers deserve a pathway to sustainable homeownership and neighborhood stability. By passing the NHIA, we are one step closer to achieving just that.
This pro-housing policy can help improve access to affordable homes in your community and across America. Right now, we can amplify our voices to make sure Congress hears us loud and clear. Before the new Congress takes office on January 3, let’s put pressure on current policymakers to prioritize housing supply.
Tell your member of Congress to prioritize the Neighborhood Homes Investment Act
The Alliance is here to help current and future homeowners access a property that meets their needs, and to help you navigate the decisions that are still on the table to do so.
As Americans face economic uncertainty, we must protect the rights of current property owners and ensure access to ownership opportunities for potential buyers.
Despite drop in new home sales, existing owners retain home values
By: Ahtra Elnashar | The National Desk
Nov 04,
2020
As soaring mortgage rates push potential homebuyers out of the market, new home sales in September
dropped by 10.9%, according to government data released Wednesday. But some industry experts say the market isn't poised for a crash yet.
Read the full article on The National Desk
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Top Housing Markets This Fall Are Those With Affordable Homes
By: Nicole Friedman | The Wall Street Journal
Nov 04,
2020
Home-buying demand remained robust in low-cost cities with strong local economies in the third quarter, helping lift Johnson City, Tenn., to the top of The Wall Street Journal/Realtor.com Emerging Housing Markets Index.
Rising mortgage rates
have made most home purchases less affordable and pushed many buyers out of the market.
Existing-home sales dropped for eight straight months through September. Homes are sitting on the market longer, and more sellers
are cutting prices.
Buyers’ focus on affordability benefited Johnson City. The metro area’s median listing price was $379,000 in September, up 27% from a year earlier, according to Realtor.com, while median list-price growth nationwide was 14%. Johnson City’s median listing price was $48,000 below the median listing price nationwide last month.
The index identifies the top metro areas for home buyers seeking an appreciating housing market, a strong local economy and appealing lifestyle amenities.
Read the full article on The Wall Street Journal
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Housing market first-timer? From contingency to foreclosure to housing market predictions, what you should know.
By: Terry Collins | USA Today
Oct 25,
2020
The U.S. housing market has gone from scorching to cooling within months as the momentum is also slowly shifting from a seller's market to one more favorable to buyers.
But some might be unfamiliar with the most commonly used terms in the industry.
"The more you know before you jump into either buying or selling a house, the easier it will be," said Kristina O'Donnell, a realtor with Realty One in the Philadelphia area.
Read the full article on USA Today
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How to Buy a House
By: Martha C. White | Wall Street Journal
Oct 25,
2020
Buying a home is a big accomplishment. It also requires a lot of planning, especially when it comes to your finances.
From figuring out how much you can spend to finding the perfect mortgage, making smart decisions upfront can save you thousands of dollars down the road. However, you can make the process a lot easier—and less stressful—by taking the time at the start to answer some of the most important questions you will face.
Buying a home is “the biggest expense most households will engage in,” says Mike Schenk, chief economist at the Credit Union National Association. “Before you even think about buying a house, you need to have your financial house in order.”
That’s why we’ve put together a three-step guide to buying a home. Read on, and we’ll walk you through the process from setting your budget to choosing a mortgage to actually bidding and closing on a home.
Read the full article on The Wall Street Journal
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American Property Owners Alliance Announces Executive Director Appointment
By: American Property Owners Alliance
Oct 04,
2020
Washington D.C.—The American Property Owners Alliance board has announced Colin Allen’s appointment as the first Executive Director for the organization.
The American Property Owners Alliance (The Alliance) is a nonprofit, nonpartisan organization that was launched in 2020 to protect and support property owners.
Colin will lead The Alliance in its mission to advance and promote solutions to property owners’ challenges. Colin will oversee efforts to educate property owners about federal issues and policies and mobilize a powerful collective of advocates to secure property owners’ rights and interests. His vision is to elevate the voices of Americans to safeguard the value of property ownership for families, communities and the country.
Colin Allen: “Voters of every background all across the country believe in our effort to protect and support property ownership. I look forward to helping current and aspiring property owners get involved in the political process and help them advocate for policies that create opportunity, build family wealth and protect their investment.”
Shannon McGahn: “Colin was an invaluable part of NAR for many years, and we are excited about his leadership of the APOA and his new role advocating for property owners and consumers. NAR and APOA align on many of the same goals and Colin understands the important role property ownership plays in building generational wealth for the American middle class. We look forward to continuing to work with the APOA as we advocate for our members, the real estate economy, consumers, and property owners.”
Colin brings more than 17 years of policy and legislative experience to the Alliance, which he will leverage to educate and mobilize property owners across the country. Prior to this appointment, Colin served as the Director of Government Advocacy and Policy Strategy at The National Association of REALTORS®. There he played a central role in the development and advocacy campaigns supporting homeownership and housing policy. His work focused on the legislative process, where he took an active role in the drafting and advocacy stages of legislation to reform insurance for home and commercial property owners, increase the availability of affordable ownership opportunities through Federal Housing Administration, and provide relief to independent contractors and small businesses.
CONTACT
Amber Hord
apoamedia@propertyownersalliance.org
###
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America Still Needs More Homes
By: Justin Lahard | The Wall Street Journal
Aug 08,
2020
The biggest problem for America’s housing market is that there aren’t enough homes available. The sales slowdown probably won’t do much to alleviate the situation and over time could make it even worse.
The National Association of Realtors on Wednesday said 5.12 million previously owned homes
were sold in June, at a seasonally adjusted annual rate, down from May’s 5.41 million. It was both the lowest level since the early months of the pandemic and below the prepandemic trend. It reflects just how much the affordability problem, driven by the sharp rise in mortgage rates and sky-high home prices, is weighing on sales.
What is needed is for housing to somehow become more affordable.
Read the full article on The Wall Street Journal
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Homeowner Assistance Fund
By: NCSHA
Jul 27,
2020
The Homeowner Assistance Fund (HAF) is a $9.961 billion federal program to help households who are behind on their mortgages and other housing-related expenses due to the impacts of COVID-19. The HAF program is overseen by the U.S. Treasury Department and administered by the states, territories, and tribes. Nearly every state and territory has launched their HAF programs, and the others are working diligently to get their programs approved and up and running quickly. To help homeowners sooner, some states have been administering pilot assistance programs while they finalize their full HAF programs.
Visit the link to find help.
Read more
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Why homeownership is becoming incredibly tough for young people
By: Adam Barnes | The Hill
Jul 20,
2020
Homeownership remains a key benchmark for younger Americans, yet many encounter numerous hurdles immediately upon entering the market.
Some need help from their parents to meet basic down payments to qualify for a mortgage, while all enter right into a housing market where inventory is historically low.
First time homebuyers deal with these issues while facing rising inflation, growing interest rates, and a supply crunch that leaves them wading through an ultra-competitive market in search of housing suitably priced for first-time owners.
Despite the drastic changes in the housing market and the strains of inflation, recent polling shows most American adults view homebuying as a hallmark of the American dream. Around 65 percent of Millennials and 59 percent of those in Gen Z put homeownership as a fundamental marker of success.
But their main barrier is affordability, whether due to their own incomes or the cost of a home.
Read the full article on The Hill
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Something Old, Something New: Biden’s Housing Plan
By: Meir Rinde | ShelterForce
Jul 06,
2020
President Joe Biden released a far-reaching Housing Supply Action Plan in May that announces or proposes dozens of measures meant to sharply boost housing production. They include incentives for local zoning reform, new financing products from Freddie Mac and Fannie Mae, budget hikes for federal programs like HOME and LIHTC, efforts to promote manufactured housing and accessory dwelling units (ADUs), supply chain improvements, and increased recruitment of construction workers.
While many of the items would improve access to affordable housing for low-income people, the document is billed as a plan to spur home construction across the board.
Read the full article on ShelterForce
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3 ways rising property values are actually bad for homeowners
By: Holly Johnson | Business Insider
Jul 01,
2020
As the value of homes rise, many empty nesters are faced with a difficult financial dilemma: stay in a home that's too large and costly to maintain, or purchase a smaller — but just as expensive — home, on top of rising interest rates.
Learn why rising property values aren't always positive.
Read the full article on Business Insider
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3 Property Rights Worth Protecting
By: American Property Owners Alliance
Jun 28,
2020
Property ownership is an investment worth protecting. The constant flow of news makes it hard to stay up to date on the important policies and decisions that impact this investment. The American Property Owners Alliance is here to help.
The Alliance cares about the unique challenges current and aspiring property owners face and works to safeguard their interests by protecting the following rights.
Right to Improve Property
Owning property gives you the opportunity to design and decorate your space any way you like. The Alliance believes a property owner has the right to alter property, so long as you respect your neighbors, bring no harm to others and abide by the law. In keeping with local business codes, you have the right to use the floor plan, measurements, design tools and contractors of your choosing.
The Alliance recently
advocated for property owners in a
ruling jeopardizing their right to use their home’s floor plan to complete necessary repairs or that dream remodel they worked so hard for. This is just one of the ways in which The Alliance advocates for property owners’ rights.
Right to Pay Fair Share in Taxes
Taxes are meant to benefit property owners because they support
a range of community benefits—from supporting local infrastructure to making communities safer. Tax incentives also make property ownership more accessible and sustainable through mortgage interest deductions and state and local property tax deductions that make owning a home more affordable.
Tax incentives for homeowners have been chipped away in recent years, which means the tax burden on property owners has grown. The Alliance believes property owners are valuable to communities and the country and have the right to pay their fair share in taxes. We’re advocating to restore tax incentives for property owners in order to protect current and aspiring owners, and to ensure communities continue to reap the benefits of property ownership.
Right to be Informed
Americans have the right to be informed of policy changes impacting their investment or access to property ownership. This way, property owners can raise their collective voice and have a say in these decisions. The Alliance is committed to helping you do both.
Sign up for emails and bookmark our
News and Resources webpage to stay updated on policy changes and the topics you care about most: housing affordability, fair housing, taxes, infrastructure and more. Then,
sign our petition urging decision makers to prioritize support for property owners once again.
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A Proclamation on National Homeownership Month, 2022
By: The White House
Jun 21,
2020
For many Americans, a home is more than just a residence. It is a place that instills a sense of pride, security, and comfort that, no matter what challenges in life arise, they have somewhere to go and call their own. Whether owning or renting, a home is where we can live with dignity and watch our families grow. During National Homeownership Month, we recognize the importance of housing and reaffirm our commitment to ensuring that everyone has a place to call home.
Homeownership is a major source of generational wealth for many Americans — it is a central part of the American dream. But for too many Americans — especially Black and Brown Americans — homeownership and the opportunity to build and pass down wealth through it are unattainable. Longstanding inequities in the housing system, from disinvestment to redlining and mis-valuation of homes in communities of color, have locked out entire generations from the American dream and the opportunity to build generational wealth. Housing also opens up opportunities that are tied to where one lives, and it is our shared responsibility to ensure that everyone has equitable access to those opportunities — from education and stable employment to quality health care and healthy food.
As we mark National Homeownership Month, we recognize the importance of housing for all Americans. Whether owning, renting, or aspiring to do either, we renew our commitment to lowering costs and expanding access to safe, affordable homes that all Americans need and deserve. Together, we can ensure that every American has a safe place to call home.
Read the full article on WhiteHouse.gov
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The U.S. needs more homes, but builders may be slowing construction
By: Jacqueline Ganun | NPR
Jun 16,
2020
Rising interest rates and record home prices are making it impossible for many Americans to buy a house, and that's making builders less confident that if they build a home they'll be able to sell it.
A new poll conducted by the National Association of Home Builders shows builder confidence in the market for new single-family homes is at its lowest level since June 2020 after six straight months of decline, "a clear sign of a slowing housing market in a high inflation, slow growth economic environment," NAHB Chairman Jerry Konter said.
Read the full article on NPR
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The New Math of Reverse Mortgages for Retirees
By: Lori Ioannou | The Wall Street Journal
Jun 03,
2020
Reverse mortgages, maligned for years as loans of last resort for struggling seniors, have gotten a makeover.
For decades the industry’s image was tainted by horror stories about borrowers who faced foreclosure, and surviving spouses who were evicted. But today, these products—first introduced in 1961—have evolved into tools that, with federal insurance and oversight, often do what was originally intended: ease financial burdens for retired homeowners with limited incomes who want to stay in their homes until death.
Read the full article on The Wall Street Journal
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Skyrocketing Home Costs Spur Fed, State Aid to First-Time Buyers
By: Alex Wolf | Bloomberg Law
May 24,
2020
Federal officials and state lawmakers are looking at new ways to help prospective home buyers compete with investors for scarce housing in hot real estate markets.
Federal and state regulators are eyeing steps to make prospective first-time buyers better able to compete for homes. Lawmakers in California and New Jersey, among others, have proposed boosting down-payment assistance funds for first-time buyers, taxing investors who flip residential real estate, and giving owner-occupants greater leverage to purchase foreclosed homes.
Read the full article on Bloomberg Law
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Why it’s so hard to buy a home right now
By: Anna Bahney | CNN
Apr 28,
2020
Home prices have
skyrocketed by nearly 20% over the last year and
mortgage rates have risen faster over the past three months than they have in decades. But the high cost to buy a home is not the only obstacle prospective buyers are facing.
Other hurdles include a lack of available homes for sale that fit the buyer's criteria, bidding wars, and failing to have enough money for a down payment, according to a new study from the National Association of Realtors and Morning Consult.
Read the full article on CNN
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Property Ownership Benefits Us All
By: American Property Owners Alliance
Apr 19,
2020
Property ownership is an investment in yourself and your community — in more ways than you might realize. Property owner tax dollars invest in communities, but that’s only part of the story: research shows that property ownership provides a range of social benefits, including increased volunteerism, improved health, and less crime. These benefits are the reason The American Property Owners Alliance believes federal policies should do a better job of supporting property owners and incentivizing property ownership.
The positive impact of property ownership is far reaching. Learn how it benefits you, your community, and the economy — and why it’s worth protecting.
You
Owning property gives you the freedom to live comfortably in a space that meets your needs. Rather than making rental payments that don’t invest for yourself, owning property helps you build wealth. According to a study conducted by the National Association of Realtors, the typical homeowner accumulated $176,123 in home equity in a span of 10 years on a median-priced single-family home.1
Homes are more valuable now than they’ve been in a long time. A recent analysis by Zillow marked the first time that homeowners earned more from appreciation of their home than their jobs in 2021.2 Purchasing a home is a big investment, but it’s a smart one.
Your Community
The community benefits of homeownership are far-reaching. Homeowners directly invest in their community through property taxes, which contribute to local schools, first responders, public parks, infrastructure like roads and bridges, and more.
The value of a home is tied to the value of the neighborhood — which means homeowners are motivated to help improve their community. The National Association of Realtors found that homeowners are more likely to upkeep their homes and yards than renters, raising property values and improving the state of neighborhoods and communities.3 Homeowners also tend to volunteer more and are more likely to participate in local elections than renters.4
The Economy
The U.S. Census Bureau found that homeowners’ median wealth was nearly 89 times larger than the median wealth of renters.5 With more disposable income, homeowners purchase more local goods and rely on more services within their community, stimulating the economy where they live. This helps create jobs, improve public infrastructure, and helps your community’s economy operate independently of others. Plus, small businesses continue to be major drivers of the U.S. economy as a whole.6
The American Property Owners Alliance is an ally to property owners and works to advance public policies that support ownership throughout the United States. We serve as a trusted resource for property owners by providing timely, accurate information to help them safeguard their interests. We believe that the dream of homeownership is worth protecting. If you agree, we encourage you to
add your name to our petition.
Join The Alliance
As mortgage rates keep climbing, homes are more expensive for both renters and buyers
By: Mike Winters | CNBC
Apr 19,
2020
One of the advantages to buying a home is that mortgage payments can be cheaper than renting — provided you have enough money saved up to afford a down payment and other costs of being of a homeowner.
However, even though U.S. rent prices surged in the last year, that rent growth has been outpaced by rising mortgage payments in recent months as home prices continue to rise.
Read the full article on CNBC
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We All Play a Role in Achieving Fair Housing
By: American Property Owners Alliance
Apr 13,
2020
April is National Fair Housing Month, a time when we celebrate the passage of the Fair Housing Act in 1968 and recognize progress towards ending housing discrimination in America. It’s also a time to think about how we can work together to achieve our shared goal of fair housing—where we can all access the housing we desire in communities that welcome us. Keep reading to learn about four organizations that are making strides to improve housing access—and see how you can join the effort to achieve fair housing.
NeighborWorks America is a nonpartisan nonprofit that creates opportunities for people to live in affordable homes, improve their lives and strengthen their communities. NeighborWorks supports a network of nearly 250 organizations nationwide that help people access sustainable homeownership. Lee Anne Adams, Senior Vice President of National Initiatives at NeighborWorks America, explains, “To overcome the longstanding and growing inequities in our communities, we need to reach common goals and align resources across sectors to make an impact.” NeighborWorks’ network of organizations offers a range of services from financial coaching and pre-purchase counseling to homebuyer education, down payment assistance programs, and affordable first mortgage products. NeighborWorks’ impact nationally in 2021 includes its network investing more than $16.8 billion in their communities, creating and/or maintaining 49,000 jobs, and providing more than 470,000 housing and counseling services.
Louisiana Fair Housing Action Center (LaFHAC) is a nonprofit civil rights organization that has been fighting against discrimination in housing since 1995. LaFHAC provides free legal representation to people who have experienced discrimination and challenges discriminatory policies and practices in the housing market. When asked why equitable access to housing is so important, Cashauna Hill, Executive Director of the Louisiana Fair Housing Action Center, explains, “Where we live influences nearly every aspect of our lives. Our zip code determines everything from whether we have access to fresh food and produce to how long we’ll have to wait for public transit, to even how long we’ll live. Equitable access to housing is important because where we live determines how or whether we’ll have access to opportunity.”
The Fair Housing Justice Center (FHJC) is a nonprofit civil rights organization that serves all five boroughs of New York City and seven surrounding New York counties. FHJC works to eliminate housing discrimination by promoting policies that foster inclusive communities and strengthening the enforcement of fair housing laws. In addition to assisting people who file housing discrimination complaints, FHJC conducts proactive systemic testing investigations to identify patterns of housing discrimination that exist in the community. “Our investigations have led to legal challenges that have opened more than 70,000 housing units to previously excluded populations, recovered more than $53 million in damages and penalties, and changed the way many housing providers and government agencies do business,” explains Executive Director of the Fair Housing Justice Center, Elizabeth Grossman.
Fair Housing Center of Central Indiana (FHCCI) is a nonprofit fair housing organization that works to create equal housing opportunities in Central Indiana through advocacy, enforcement, education, and outreach. FHCCI was established in 2012 through a U.S. Department of Housing & Urban Development grant awarded to the National Fair Housing Alliance to establish a fair housing agency in central Indiana. When asked what the future of fair housing looks like, Amy Nelson, the Executive Director of Fair Housing Center of Central Indiana, explains, “Truly achieving fair housing requires the full attention and support of the federal government, the courts, and all of us. Fair housing laws have never had funding or the strength of will to truly address our nation’s history of discriminatory practices that still impact our neighborhoods and our country today. I remain hopeful we can achieve the vision of fair housing laws that allows each person to have equal housing opportunity.”
The American Property Owners Alliance (The Alliance) convenes current and aspiring property owners and housing organizations to create a unified voice for policymakers to hear. We take action to expand policies and programs that promote equitable access to homeownership.
Click here to sign-up for action alerts so you can advocate with us!
If you believe you have experienced discrimination in renting or buying a home, getting a mortgage, or other housing-related activities because of your race, color, national origin, religion, sex, familial status, or disability—click here to learn how to file a complaint with HUD. HUD will investigate your complaint for free.
With housing stock low and prices up, Black, white homeownership gap growing | Opinion
By: Ja’Ron Smith and Steve Benjamin, The Columbus Dispatch
Apr 07,
2020
A former Trump deputy assistant and the first Black mayor of Columbia S.C. say the gap between Black and white home ownership is larger now than when housing discrimination was legal.
For generations, owning a home — especially
a first home — was a rite of passage for many Americans.
The home you purchased was a place to raise a family, a sanctuary after a long day at work, and the backdrop to life’s most precious memories.
A home also served as a critical investment in creating generational wealth. It was and remains a source of pride and dignity for the American family.
Today, however, the possibility of owning a home is harder to come by, especially for Black Americans. The gap between Black and white Americans who own homes is
larger today than when
housing discrimination was legal — and it continues to grow.
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American Property Owners Alliance Supports Appeal of Ruling on Homeowners’ Use of Floor Plans
By: American Property Owners Alliance
Apr 05,
2020
Appellate Court ruling could prevent homeowners from using floor plans for appraisals, tax assessments
WASHINGTON (April 05, 2022) - The American Property Owners Alliance (The Alliance) supports the effort to appeal the Eighth Circuit Court of Appeals
ruling in Designworks Homes, Inc. v. Columbia House of Brokers Realty, Inc. to the U.S. Supreme Court.
The Appellate Court decision means homeowners may be found liable for copyright infringement for using a reproduction of the floor plan of their home —including a copy or even a sketch of the floor plan—without authorization from their architect.
This includes the use of floor plan reproductions or use of floor plan measurements in appraisals for mortgages, tax assessments, property evaluation documents, insurance documents, or home improvements.
“Property owners have the right to use the floor plan and measurements of their property as they see fit,” said American Property Owners Alliance President, Jim Imhoff. “The Eighth Circuit ruling is a direct threat to that right and we support giving the Supreme Court the opportunity to reverse the Appellate Court’s misguided decision.”
The Eighth Circuit Court ruling is deeply unpopular, according to an online survey of 1,029 homeowners who voted in the 2020 Presidential election. The survey was conducted by The Alliance from March 15-20, 2022 and has a margin of error +/- 3%. The survey found:
- 71% of respondents strongly agree you have the right to do what you want with your property, as long as you respect your neighbors, don’t harm others, or break the law.
- 85% of respondents strongly agree you have the right to remodel or renovate the inside of your home as you see fit, consistent with local building codes where applicable.
- 89% of respondents strongly agree homeowners should be able to create a floorplan of their home anytime they want, and select whomever they want to fulfill that task.
- 83% of respondents strongly agree the owner of a home has the right to use the measurements of the inside of that home, along with online design tools, to ensure that new furniture and appliances would fit before making those significant purchases.
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Mortgage rates rise above 4% for the first time since 2019
By: CNN
Apr 05,
2020
Mortgage rates climbed past 4% for the first time since May 2019. All these factors will continue to push mortgage rates higher in the months ahead. That means one of the main drivers of home sales over the past two years -- super low mortgage rates -- is drying up. At today's rates, the monthly mortgage for a buyer of a median-priced home will be more than $340 higher than it was a year ago.
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Planning to buy a home in the spring? Some new mortgage rules may affect your purchase
By: The Washington Post
Apr 05,
2020
Some adjustments have been made in response to such events as the pandemic-associated economic crisis. Here are the new rules that you should know about before applying for a loan.
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Homes Earned More for Owners Than Their Jobs Last Year
By: Wall Street Journal
Apr 05,
2020
Home values surged last year as low mortgage-interest rates stoked buyer demand and the number of homes on the market remained unusually low. Collectively, U.S. homeowners with mortgages gained more than $3.2 trillion in equity in 2021 compared with a year earlier, according to housing-data provider CoreLogic.
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4 Lesser-Known Tax Deductions for Landlords
By: American Property Owners Alliance
Mar 31,
2020
The Alliance is here to help housing providers take advantage of the tax benefits available to them when filing this year. Whether you own one rental property or dozens, these tax deductions can help you keep more money in your pocket. Most rental property owner deductions can be claimed in
Form 1040 and filed with your regular annual tax return.
Pass-Through Deduction
Certain landlords who are owners of sole proprietorships, partnerships, S corporations and certain trusts may deduct up to 20% of their net rental income from their income taxes if their rental activity rises to the level of a business instead of an investment. Owners of rental property who spend at least 250 hours per year on the property or properties may also qualify. This deduction is set to be available from 2018 through 2025—take advantage of it while you can!
Advertising Costs
Owners of rental property can deduct expenses that help you bring in new tenants and keep existing ones. This includes “For Rent” signs, newspaper ads, digital advertising and more.
Legal and Professional Services
Owners of rental property may deduct fees paid to attorneys, accountants, advisors, and other professionals incurred from buying and maintaining the property.
Travel and Transportation
Owners of rental property can deduct travel expenses incurred when traveling to their rental building to deal with a current tenant complaint or to locations related to maintaining the property — this includes the hardware store!
These 4 lesser-known deductions can help save you money this tax season, but don’t forget to claim deductions for utility, insurance, and repair costs when you file as well.
Preserving and expanding tax benefits for property owners is a top priority for the American Property Owners Alliance.
Sign our petition to advocate for tax policies that support homeowners.
Sign up for updates and we’ll keep you informed on policy changes that impact your investment.
Click Here
Homeowner Tax Deductions for 2022
By: American Property Owners Alliance
Mar 30,
2020
Tax incentives help current owners protect their investment and make homeownership more accessible for all. Here are some key tax provisions that you should be aware of when filing this year.
Preserving and expanding tax benefits for property owners is a top priority for the American Property Owners Alliance.
Click here to see how you can advocate for tax policies that support homeowners and housing providers.
Sign up for updates and we’ll keep you informed on policy changes that impact your investment.
Click Here
[social_warfare]
American Property Owners Alliance: Honoring Influential Women in Housing
By: American Property Owners Alliance
Mar 16,
2020
Throughout America’s history, influential women have shaped the housing opportunities, social services, and vibrant communities we have today. As we celebrate Women’s History Month, The American Property Owners Alliance (The Alliance) is recognizing three female leaders who took a stand to create essential resources for those in need and build diverse and resilient communities.
Catherine Bauer was an influential leader in the fight for affordable housing. Her forward-thinking approach to housing policy led her to be the primary author for America’s first affordable housing legislation — the U.S. Housing Act of 1937. Bauer influenced housing and urban planning strategies throughout the terms of three different United States presidents.1
Patricia Roberts Harris made history as the first African American woman to hold a cabinet position when she was appointed to Secretary of Housing and Urban Development (HUD) in 1977. As HUD Secretary, Harris brought aid to deteriorating neighborhoods and worked to bring business back to impoverished areas.2 Harris was known for her leadership in battling housing discrimination and rehabilitating neighborhoods.
Jane Jacobs was a writer and activist who championed a community-based approach to city planning. In Jacob’s 1961 treatise, The Death and Life of Great American Cities, she claimed, “Cities have the capability of providing something for everybody, only because, and only when, they are created by everybody.”3 Jacobs was known for her innovative approach to building vibrant communities that prioritized parks and public spaces that served the needs of residents.
These are just a few of the influential women who have or are improving America’s housing opportunities through advocacy and forward-thinking policy. It’s up to us to continue the mission to make housing more accessible and equitable. The Alliance is a nonpartisan, nonprofit that advocates for public policies that support property ownership and strengthen communities. If you’re interested in supporting this mission, join our efforts today.
[social_warfare]
1 https://labgov.city/theurbanmedialab/catherine-bauer-wurster-hero-of-american-affordable-housing/
2 https://www.historicamerica.org/journal/2021/3/1/a-woman-of-firsts-patricia-roberts-harris
3 https://www.theatlantic.com/magazine/archive/2016/11/the-prophecies-of-jane-jacobs/501104/
Two-thirds of single women say they’re not waiting until marriage to become homeowners, study finds
By: Jason Lalljee, Business Insider
Mar 08,
2020
Single women are also quietly dominating the housing market. About 2 in 3 single women (65%) reported that they would rather not wait until they were married to buy homes, regardless of how old they were.
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New York City’s Property Taxes Are Crushing Homeowners
By: Donna Borak, Bloomberg
Mar 08,
2020
'Living Here is Getting More and More Difficult.' Homes are taxed as a function of their market value across much of the nation, but New York City's process is more complicated and problematic than most.
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Buying a First Home Is Tougher Than Ever in Today’s Market. Here’s What Experts Say It Takes to Be Successful
By: CNBC
Feb 14,
2020
Home inventory for people who typically qualify as first-time homeowners is at record lows. Still, despite the frustrations of buying your first home in a challenging market, now might be the time to lock in your mortgage payment, before interest rates increase.
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Homebuyers Confront an Abnormal Market for Yet Another Year
By: Yahoo
Feb 14,
2020
Home prices are going up, along with mortgage interest rates. Is now the time to buy — before conditions worsen?
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Homeowners Gain Nearly $225K in Equity Over the Past Decade
By: theMReport
Feb 08,
2020
Homeownership is seen as the largest source of wealth among families, with the median value of a primary residence worth nearly 10 times the median value of financial assets held by families.
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What Factors Are Holding Back Black Homeownership?
By: theMReport
Feb 08,
2020
Applying for a mortgage is one of the most important applications most will ever fill out in their lifetimes; getting denied because of simple omission can set the process back by weeks. According to a new report by Zillow, the rate at which Black applicants were denied mortgages is 84% higher than white applicants in 2020 (the latest year for which data is available). This is up from the 74% rate seen in 2019.
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Student Debt Getting in the Way of Millennial Homeownership
By: Axios
Feb 08,
2020
Millennial homeownership is on the rise — but student loan debt is still keeping millions of members of America's largest generation from owning a home. Buying a house remains the No. 1 way to build wealth in the U.S. Due to their sheer numbers, millennials are the largest group buying homes right now, but their rate of homeownership lags behind previous generations.
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Homeowner Assistance Fund Applications Are Now Being Accepted in Many States — Here’s How To Apply
By: GoBankingRates
Feb 08,
2020
Homeowners who need financial assistance with their mortgages and other housing-related expenses can apply for help via the Homeowner Assistance Fund (HAF), a federal program designed to help households who have fallen behind due to COVID-19.
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December Marks 3rd Straight Month of Growth for Us Builders
By: AP News
Feb 08,
2020
Construction of new homes in the U.S. rose for the third consecutive month in December and data released Wednesday suggests that the frantic pace of building will continue this year.
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What Will the 2022 Housing Market Look Like? It Could ‘Come Back Down to Sanity’
By: CNBC
Feb 08,
2020
The Covid-19 pandemic upended the home-buying process. Historically-low mortgage rates coupled with an inventory shortage created a red hot market with houses selling within hours of being listed, often for well over asking price.
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Understanding the Homeowner Assistance Fund (HAF)
By: DSNews
Jan 26,
2020
On or around August 2, 2021, the Treasury Department issued guidance for the Homeowner Assistance Fund (HAF), pursuant to section 3206 of the American Rescue Plan Act of 2021.
Under the Homeowner Assistance Fund, the Treasury Department will provide financial assistance in an aggregate amount of approximately $9.961 billion. The $9.961 billion will be distributed to the states and run at state level. Some states are using the funds that they have received to run pilot programs. As of today, approximately 18 states have pilot programs up and running.
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Millennials Are Supercharging the Housing Market
By: Wall Street Journal
Dec 15,
2020
Alex and Michelle Angert lived the last years of their 20s without a permanent address. They moved out of a small Manhattan apartment in 2018 to stay in short-term rentals around the U.S. before embarking on a yearlong honeymoon to travel the world, starting in the Philippines.
When the pandemic cut their travels short last year, Mr. Angert, 31, decided to take a job in public relations in Richmond, Va. He and Mrs. Angert, who is also 31 and works at a healthcare tech company, started house hunting this spring. After losing out on multiple offers, they raised their $400,000 budget. In July, they plunked down $635,000 on a three-bedroom ranch in a tree-filled lot near a Richmond country club.
“I would have had all of these regrets in life if I didn’t travel,” Mr. Angert said. “But it feels like the right time to settle down and put down some roots.”
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Financial Education Is Key To Smoothing The Home-Buying Process For First-Time Buyers
By: Forbes Magazine
Dec 10,
2020
Homeownership is the “American Dream” handed down from generation to generation, and millennials have taken the baton. In its annual homebuyers report, the National Association of Realtors stated millennials (those currently aged 22-40) have been the largest share of homebuyers since its 2014 report. Of homebuyers surveyed, they accounted for 37% of those who bought homes between July 2019 and June 2020.
However, a separate survey of about 2,650 U.S. adults found that 64% of millennial respondents who bought into homeownership regretted their decision. Their biggest regret was not being prepared for home maintenance costs.
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The Housing Affordability Crisis and the Solutions We Need Now
By: American Property Owners Alliance
Oct 20,
2020
Housing is a basic human need, yet affordable housing is increasingly difficult for Americans to attain. Why is there a shortage of affordable homes? And how we can work together to bring solutions that will make homes affordable and accessible?
How we got here
Two decades of underbuilding and underinvestment in housing
[1]—especially the construction of affordable homes—has created an enormous gap between housing supply and demand that will require a national effort to close.
There is now between 5 million to 6.8 million housing units missing from the housing inventory[2]. This supply-demand gap has driven a consistent and drastic rise in home prices that puts the dream of homeownership out of reach for many Americans. Without action on the federal level, the shortage of adequate affordable homes will continue to worsen and have a host of negative consequences for homebuyers and communities.
The effects of Covid on housing
The “perfect storm” of increased demand and low supply over the past year has created a competitive housing market. In areas like New York, Boston and the Bay Area, severe supply shortages have skyrocketed home prices leaving millions of low and middle-income families unable to afford centrally located homes.
The median price for a single-family home in San Francisco has reached $1.8 million
[3]; even with today’s low interest rates, that requires a monthly mortgage payment of roughly $7,500, assuming the family puts down the standard 20 percent.
The problem now even extends to rural areas across the country where many families are spending half or more of their income on housing
[4].
Americans should be able to afford homes that are close to work and meet their needs. In many regions across the U.S., this is extremely difficult—if not impossible—for homebuyers to find.
The state of housing today
Over the last few months, the hope of returning to normalcy has fueled an increase in consumer spending overall. The housing market has followed suit: low mortgage rates and positive consumer sentiment have sparked a sudden interest in homebuying
[5]. Housing prices are skyrocketing because the demand is so great, and the supply is so thin.
Here are some key statistics that illustrate the current state of the housing market:
- In September, the national average price for a home was $380,000, 8.6% higher than last year and 20.6% higher than 2019[6].
- The number of homes for sale right now is 22.2% below this time last year. The total number of homes actively available for sale is less than half of what we saw in 2019[7].
Looking ahead
There has been a small increase in new listings this year, which is optimistic for buyers. However, the gap in our nation’s housing supply will take a long-term national effort to close. Traditionally, the federal government’s housing policies have consisted of demand-side interventions like tax incentives for homeowners, which have been slashed in recent years and do little to help reduce the cost of housing. The biggest cause of surging home prices today is the low supply that existed before the pandemic and has been exaggerated by the pandemic. America needs supply-side interventions that will drastically increase the number of affordable homes on the market.
The American Property Owners Alliance supports federal policies that:
- Incentivize the construction and rehabilitation of homes for low and moderate-income families
- Offer incentives to convert unused or underutilized commercial properties into residential units
- Provide funding for state and local government to enact pro-housing policies at the local level
The Alliance’s 10 million advocates will be activating soon to pass federal legislation that can help close the housing supply gap. Sign up to receive alerts when there is an opportunity to take action to help make homes more affordable for Americans.
[social_warfare]
[1] https://cdn.nar.realtor/sites/default/files/documents/Housing-is-Critical-Infrastructure-Social-and-Economic-Benefits-of-Building-More-Housing-6-15-2021.pdf
[2] https://cdn.nar.realtor/sites/default/files/documents/Housing-is-Critical-Infrastructure-Social-and-Economic-Benefits-of-Building-More-Housing-6-15-2021.pdf
[3] https://www.bayareamarketreports.com/trend/san-francisco-home-prices-market-trends-news
[4] https://www.pewtrusts.org/en/research-and-analysis/blogs/stateline/2019/03/25/rural-america-faces-a-housing-cost-crunch
[5] https://www.forbes.com/sites/saibala/2021/04/27/the-covid-19-pandemic-has-fueled-a-crisis-in-the-housing-market/?sh=6ecd0b885928
[6] https://www.realtor.com/research/september-2021-data/
[7] https://www.realtor.com/research/september-2021-data/
To the chagrin of homebuyers, investors swarming in hot housing market
By: American Property Owners Alliance
Sep 03,
2020
Having a hard time buying a home? You aren’t alone in this crazy housing market where over-bid offers, homes being purchased sight unseen, and cash offers are crushing the chance of the average homebuyer from getting a sniff at the home they want.
But you know who isn’t struggling to buy a home?
Investors.
According to data from Redfin, investors purchased nearly 68,000 housing units in the second quarter alone – this included single-family homes, multi-family properties, townhouses and condominiums.
This was the largest number of investment purchases in one quarter since Redfin started collecting their data in the year 2000.
All told, those units cost $48.5 billion, which is also a record total, according to the report.
This also isn’t something that was brought about solely by the pandemic and record-low mortgage interest rates. Investors have already been more active in the residential real estate market prior to the COVID-19 outbreak. In the first quarter of 2020, about 16% of all residential sales were made to investors.
Soaring home prices have become an opportunity for investors – who are defined as a company or institution purchasing a home, instead of an individual – as the value of homes continues to increase, investors are practically guaranteed a strong return on their investment.
According to the report, investors are focusing on single-family homes more than they ever have before, buying them and turning them into rental properties. In the second quarter, 16% of single-family home sales went to investors, also an all-time high.
With so many Americans priced out of the homeownership market, investors are taking advantage, buying these homes, converting them to rentals, and turning a profit as housing providers.
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Will the Delta variant impact the housing market like its Alpha counterpart?
By: American Property Owners Alliance
Sep 02,
2020
Looking back, the COVID-19 pandemic had a strange and unexpected impact on the housing market in 2020 when the Alpha strain encompassed the United States.
While people were losing jobs, businesses were closing down and unemployment rates were soaring - it was hard to buy a home. Open houses were all but verboten. Would-be sellers felt the anxiety of the pandemic and either pulled their home off the market or never listed it to begin with out of fear it wouldn’t sell.
But then, something happened. After a brief slow down at the start of the pandemic, as the summer of 2020 approached, the housing market started to respond robustly and a housing boom that is still going strong more than a year later, was born.
“It’s hard to say how it’s going to affect the housing market,” Danielle Hale, chief economist for Realtor.com told their website. “The next couple of months are going to be pretty key to see which gear the housing market [shifts] into.”
Prices are unthinkably high. Buyers get into bidding wars with each other over the limited supply, often times winning their bids by going over list price, or by offering cash deals.
Now, COVID-19 is rearing its ugly head again. This time with the even more contagious Delta variant. Which begs the question, how will it impact the housing market this time?
It could completely flip the hot housing market on its ear again, or it could just be a passing phase that impacts data for a couple of months before things return to the new normal of demand far outweighing the supply.
There is a real debate among those in the housing community. Delta has brought back masks – even for vaccinated individuals - as a recommendation to help squash the virus once more. And with the return of masking recommendations, the country is again splitting on political divides, and it is leading to more economic uncertainty for the U.S. in the global economy and has also led to financial markets that are all over the place from one day to the next.
“It’s hard to say how it’s going to affect the housing market,” Danielle Hale, chief economist for
Realtor.com told their website. “The next couple of months are going to be pretty key to see which gear the housing market [shifts] into.”
The Delta variant has also led to the return of falling mortgage interest rates, just as they were starting to inch back up toward pre-pandemic levels.
If you combine this with the possibility of returning back to the country being shut down as it was in the Spring of 2020, this could bring more buyers to the market – looking to get a home with a locked in fixed mortgage interest that is near historical lows. But, this can also lead sellers to once again be scared to sell amidst a health crisis, reducing inventory even further, sending prices to unfathomable highs and pricing out most first-time homebuyers and even other middle income earners looking to upgrade their home.
Is another lockdown likely? No. But, it’s not out of the realm of possibility. How Americans will handle the anxiety or frustration that could come with that, or with simply the possibility of another stay-at-home order, could go both ways.
That’s because many Americans might be completely fed up with the pandemic, and are less fazed this time around, even if the variant of the virus is more contagious than the original. This will become even more evident if another lockdown is avoided.
Sellers, especially if they are vaccinated, may not care one iota about Delta, and still list their home for sale. And buyers, even if they are unsure about visiting strange homes in the midst of the pandemic, will still tour homes online and maybe bid on them sight unseen.
There’s also the notion that pandemic anxious buyers may have already gotten into a new home between the Alpha and Delta breakouts. Meanwhile, those waiting for prices to come down may still be doing that and those individuals who are actually returning to a workspace that isn’t in their home may now want to avoid getting into a new home that will make their work commute that much longer.
As such, Delta may not have a real impact on the housing market, unless quarantines and work and school shutdowns return.
Where Delta is having an impact is on mortgage rates.
According to Freddie Mac, in late July, the mortgage rates fell to 2.78% on a 30-year fixed-rate loan.
As such, if things continue to get worse with this fourth round of the pandemic, the rates will stay low or even sink lower.
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Housing affordability crisis will likely get worse before it gets better
By: American Property Owners Alliance
Sep 01,
2020
Housing experts have been warning us for years that there is a pending housing affordability crisis. It was already rearing its ugly head in certain parts of America before the COVID-19 pandemic. but, since the pandemic, it’s accelerated even faster.
Housing prices and rents are getting higher and higher, and it’s likely still going to get worse before we reach the tipping point.
It is estimated that in the next decade the U.S. will need to add about two million new housing units per year to make up for the 7.4 percent population increase that took place in the 2010s.
“The country has been underbuilding housing for two decades, leading to a shortfall of 6.8 million housing units.”
However, in 2020, there were only 1.3 million new housing units developed - a number that falls well short of what will be needed if 2021 and beyond bring about similar totals.
And there isn’t much room for optimism right now. The cost of housing development has skyrocketed. The red tape that is local zoning codes and restrictions is slow to cut through – if you can get through it at all. And thanks to the pandemic, there is an unexpected labor shortage that is also slowing development.
With all those things working against housing developers, it’s hard to imagine making up that chasm of 700,000 homes needed to start to slow the crisis. Builders would need to collectively boost their production by 60% each year, a goal that is likely too ambitious to reach.
According to a study by the National Association of REALTORS®, done in conjunction with the Rosen Consulting Group, the country has been underbuilding housing for two decades, leading to a shortfall of 6.8 million housing units, when adding in homes lost in that same time frame due to disasters or demolition.
What was hard to predict was that even with the economy being hit hard by the pandemic in 2020 and into 2021, the prices of homes and rents continued to increase. This was because historically low mortgage interest rates allowed more buyers to enter the housing market, making demand significantly outpace the supply.
It created bidding wars, and alternative purchasing methods – like all cash offers, corporations buying up housing stock, bids well above the list price and even the purchase of properties sight unseen – more normal.
This also forced potential buyers, who could not afford a home in the bidding war, to resort to seeking rentals. As such, housing providers increased the cost of rentals as they started to be swallowed up by the same supply vs. demand game.
This left many Americans, in the lower income threshold, without affordable housing options - a dangerous precedent that has led to more homelessness – and could see those numbers spike even more once the country figures out how to resolve the conundrum created between property owners and renters brought on by the eviction moratorium.
According to the National Low Income Housing Coalition, Wages of between $20 and $25 per hour are needed just to afford the rent of a one or two-bedroom unit. Their data, according to
Bisnow, also indicates that there are only 37 affordable housing unit available in America for every 100 extremely low-income renters.
The Senate recently passed a $1.2 trillion infrastructure bill that includes $213 billion in funds to preserve more than two million affordable housing units. And, while that’s a nice first step, it pales in comparison to the amount of time and money that would be needed to close the wound that has been festering for decades when it comes to housing affordability.
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CoreLogic: June home price increase the largest in 42 years
By: American Property Owners Alliance
Aug 30,
2020
Housing prices on the rise? Not a shocker. Housing prices jumping in one month by the largest percentage in 42 years? That one might catch even the most ardent real estate analyst off guard.
Just when you thought there was nothing else that could surprise you about the housing market…
This stems from data released by CoreLogic, a property analytics provider, that showed that home prices rose in June by 17.2% - the highest one-month growth since 1979.
It was no secret that the pressures of supply and demand during the pandemic are resulting in higher prices, but such a huge leap, month-over-month, is both rare and historical.
“Homes are on the market for the shortest period of time in history, averaging about two weeks – meaning half of the homes are selling faster than that.”
When you combine historically low mortgages and low inventory of homes for sale, that means there are going to be significantly more people who want to buy a home than the number of homes that are actually on the market.
This is what is creating a wild market with bids over the list price, all cash offers, and purchases being made sight unseen. This is why homes are on the market for the shortest period of time in history, averaging about two weeks – meaning half of the homes are selling faster than that.
This means affordability is going to remain a core problem on the hosing market in the near future, and maybe even longer.
The intense growth is stalling the market not just for the potential buyers, but for sellers as well. The reason being is folks who want to sell their home are waiting to list because they are often unable to find their next home within their budget.
As bad as it is for current homeowners looking to move, first-time homebuyers are in an even worse situation, as they struggle to come up with a down payment for any home, regardless of price.
Detached properties grew the most, according to CoreLogic. Their rate of price growth was 19.1%, significantly higher than the growth for attached properties (10.7%).
This is a result of the COVID-19 pandemic as it increased the desire for less dense neighborhoods and more living space, both inside the home and outside it.
The markets that saw the largest growth were Twin Falls, Idaho (40.2%) and Bend, Oregon (35.4%). Overall, the states with the largest jumps in price were Idaho (34.2%) and Arizona (26.1%).
However, this trend does seem a bit unsustainable, and when the market finally stalls, the growth will take a hit as well. While the values aren’t expected to decrease, they should stabilize, with prices expected to increase only by about 3% by the same time next year.
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What’s in the $1.2 trillion Senate infrastructure package
By: Washington Post
Aug 12,
2020
The United States Senate just passed a $1.2 trillion infrastructure package, the largest upgrade to the country’s roads, bridges, pipes, ports and broadband in decades.
The package contains $550 billion in entirely new investments, including money for electric car charging stations and zero-emission school buses. The spending is mostly paid for — without raising taxes. The bulk of the funding comes from repurposing unspent coronavirus relief money and tightening enforcement on reporting gains from cryptocurrency investments. The bill would add about $256 billion to the debt, according to the Congressional Budget Office.
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“New” eviction moratorium looks a lot like the old one
By: American Property Owners Alliance
Aug 12,
2020
It was expected that once the national eviction moratorium came to an end, things would get messy.
However, having the applecart upset before that storm even hit was a bit unexpected, and yet – here we are.
Rental assistance money is not being handed out as quickly as it should. With a lot of renters in danger of being evicted from a home they insist they can’t pay for because of the pandemic, the Biden Administration, through the Centers for Disease Control and Prevention (CDC), once again extended the moratorium – this time through October 3. Despite saying at the time that the last extension, which expired July 31, would be the last time it was extended, this moratorium is being considered a “new” one.
“It is a national shame,” Susan Rice, the director of the Domestic Policy Council, told the Times, “That our state and local entities have not taken advantage of this substantial investment from Congress to prevent exactly what we are concerned about.”
It is a gamble by the administration and may be a move that comes off as a bit of “gamesmanship” on the part of the President.
When the last extension was enacted in June, the Supreme Court of the United States voted 5-4 to allow it to reach its conclusion but opined that the CDC had overstepped it’s bounds by continuing the moratorium for so long.
Although the Supreme Court slightly left the door open for interpretation as to what their next ruling would be if the moratorium was extended yet again, Justice Brett Kavanagh made it clear that he would vote against any further extensions, which could swing the vote if it happens to come before the Supreme Court again.
But there are other legal hurdles this latest extension would have to traverse before it gets back to the Supreme Court.
Trying to put an end to the moratorium
The Alabama and Georgia state REALTOR® associations—along with two housing providers and their property management companies—filed an emergency motion in federal court to block this latest action by the CDC.
Although the latest moratorium language was cleverly composed to be narrower in scope initially – saying it would only be extended in areas with high transmission of COVID-19, at the time it was ordered - it still covered about 90% of all renters in the U.S. And, with the continued spread of the Delta variant of the coronavirus, it likely could get back to covering 100 percent of all renters.
The new language was designed to circumvent the Supreme Court ruling which required Congressional approval of any new legislation that would allow for a moratorium to be created or extended. Despite a desperate plea from President Biden to Congress two days before the moratorium was set to expire in July, Congress could not pass any new legislation.
Biden was then pressured by those in his own party, including Speaker of the House Nancy Pelosi, to file an extension anyway and see what would happen.
The Alabama and Georgia REALTOR® associations are now asking a judge to uphold the Supreme Court’s interpretation, and that judge, U.S. District Court Judge from the District of Columbia, Dabney Friederich, is considering blocking the latest ban.
“Given that this order is almost identical to the CDC’s earlier order, as to the effect of it, it’s really hard … to conclude that there’s not a degree of gamesmanship going on,” Friedrich said, according to
Politico.
However, the Department of Justice (DOJ) has argued in court filings that this isn’t an extension of the previous moratorium, but rather a brand new one. They believe it is necessary to continue helping struggling renters as spread of the Delta variant explodes in the U.S.
If Friedrich does block the ban, the DOJ will almost certainly appeal the decision, which would keep the moratorium in effect while the appeals process plays out.
Ensuring people stay in their homes after the moratorium ends
But housing providers say the moratorium, which the CDC first put in place last September, has cost them more than $13 billion per month in unpaid rent, and they continue to urge for swift deployment of federal rental assistance as the solution.
Here’s the problem: according to a report in the
New York Times, the Department of Treasury disclosed on July 21 that $3billion out of $46 billion in Congressionally approved rental assistance money had been given to the renters who needed it, while the states and cities who got the funding have been sitting on the rest.
Throughout July, the Biden Administration tried to expedite the disbursement of the remaining dollars, money that would have allowed renters to pay their housing providers during the pandemic and make everyone whole. But their efforts were fruitless.
According to the
Times, logistical issues and concerns about potential fraud kept much of the money from flowing. Some cities required overly complicated application forms. Many renters did not hear about the program and simply didn’t sign up. In some states, the money remained frozen because of concerns about giving funds to people who didn’t really need it.
“It is a national shame,” Susan Rice, the director of the Domestic Policy Council, told the
Times, “That our state and local entities have not taken advantage of this substantial investment from Congress to prevent exactly what we are concerned about.”
Housing activists had been shouting at the tops of their lungs for months that once the moratorium expired, a large number of renters would suddenly be at high risk of becoming homeless.
The National Association of REALTORS® (NAR) has been pushing hard for the rental assistance money to be distributed and done so in a timely fashion.
“About half of all housing providers are mom-and-pop operators, and without rental income, they cannot pay their own bills or maintain their properties,” NAR President Charlie Oppler said in a statement. “NAR has always advocated that the best solution for all parties is rental assistance paid directly to housing providers to cover the rent and utilities of any vulnerable tenants during the pandemic. No housing provider wants to evict a tenant and considers it only as a last resort.”
When meeting with reporters after announcing the “new” moratorium, Biden admitted that the way he and his administration went about it was a risk and that it could be vulnerable in court, but that the appeals process would allow it to continue long enough to get more of the rental assistance money into the hands of the renters who need it.
“I went ahead and did it,” Biden said, according to the
Times. “But here’s the deal: I can’t guarantee you the court won’t rule if we don’t have that authority. But at least we’ll have the ability, if we have to appeal, to keep this going for a month at least — I hope longer than that.”
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Redfin: 51 percent of homes in U.S. selling above the list price
By: American Property Owners Alliance
Aug 10,
2020
It used to be that when you were selling your home you would list a price a little higher than the offer you were willing to accept – that way, as bids came in, you could determine which one you were willing to settle for.
The way things are going now, that concept is growing extinct.
That’s because more than half the homes being sold in America are being sold at above their list price.
With the housing stock dwindling, and the demand for homes increasing, prices are rising exponentially. As a result, the market has become uber-competitive, and home sales are now happening faster, for more money, sometimes sight unseen and even with cash offers.
According to a recent study by Redfin that looked at home sales in 400 Metropolitan markets, 51% of homes sold in the U.S. sold above the list price during a four-week period that ended in late May.
This was a whopping 26% increase over the same time period in 2020.
And although the pandemic put a crimp in home sales initially last Spring, the jump is still significant.
In addition, the study showed the median home sale price was $354,250, the average asking price for a single-family home was $361,875, and the average length of time a home lasted on the market was 17 days. All three of these data points are records.
Price growth usually doesn’t happen until later in the summer, but the skyrocketing prices haven’t just unhinged the door to alternative approaches toward buying a home, they’ve blown the door completely out of the way.
The housing market is expected to remain white-hot until mortgage rates increase, which likely won’t occur until after the summer months.
Until then, it’s going to be more of the same – buyers being forced to bid above a home’s list or maybe even higher than they budgeted to get a home.
The study also showed that the number of active listings are down 49% from the same time in 2019 – which was used as a measure so it could compare to pre-pandemic data.
That indicates a severe lack of housing available in general is driving home prices through the roof across the country and is pricing a lot of potential buyers out of the market.
The problem is, there are still active buyers who are able to traverse the turbulent waters and are willing to buy homes at these more exorbitant prices.
The study showed that of the 400 markets studied, 399 of them saw increases in home sales. The lone market that had a decrease was Rochester, N.Y. (-3%).
The largest gains were in markets like San Francisco (184%), San Jose (150%) and Miami (120%)
As for prices, they unsurprisingly increased in all 400 markets. Th largest price increases took place in Austin (42%), Oxnard, Calif. (26%) and Miami (26%). The smallest increase was in Honolulu (0.2%).
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Biden Administration offers more options to prevent foreclosures
By: American Property Owners Alliance
Aug 10,
2020
The foreclosure moratorium for federally-backed mortgages expired at the end of July, but the Biden Administration has come up with alternatives for borrowers to reduce their mortgage payments.
These new options, administered by the Department of Housing and Urban Development (HUD), the Department of Veterans Affairs (VA) and the Department of Agriculture (USDA), will provide options for homeowners that would allow them to lengthen the terms of their mortgages by reducing the monthly principal and monthly interest.
This would bring them “closer in alignment with the options for homeowners with mortgages backed by Fannie Mae and Freddie Mac,” according to a press release provided by the White House.
While the foreclosure ban expired on July 31, the enrollment period for forbearance on loans is still available through September 30.
“HUD will allow servicers to extend the mortgage term for those borrowers unable to make monthly payments after the foreclosure ban expired.”
According to
Housing Wire, about 1.75 million homes are still in forbearance. For those Americans who are ready to start paying their mortgages once again, the federal government will allow them to simply add on payments to the end of their current mortgage payment schedule to make up for the lost time.
However, many homeowners are going to need more help than just lengthening the mortgage payment schedule if they are to keep their current homes.
“In order to ensure a stable and equitable recovery from the disruptions of the COVID-19 pandemic and prepare for homeowners to exit mortgage forbearance, the Biden-Harris Administration is taking action to keep Americans in their homes and support a return to a more stable housing market,” the White House said in a statement.
HUD will allow servicers to extend the mortgage term for those borrowers unable to make monthly payments after the foreclosure ban expired. According to the release, some mortgage terms can be extended 360 months – or another 30 years – at the market rate, which would reduce their monthly payments by about 25%.
Additionally, borrowers can receive a partial claim, which is an interest-free second mortgage, of sorts, that isn’t due until the first mortgage is paid off in its entirety.
These partial claims will be offered by HUD to those borrowers who can start making their mortgage payments again.
The VA will buy a portion of the borrowers’ unpaid principal balance and arrears up to 30% and offer a partial claim that is interest free. Additionally, they can extend mortgages for as many as 40 years.
As for the USDA, their options are targeting a 20% reduction in monthly payments. These would include a term extension, like HUD, but also an interest rate reduction as well as an advance to help make up for past due payments. Borrowers would have the option to use these new alternatives either individually, separately, or combined.
Aside from these new options, the Homeowners Assistance Fund will provide $10 billion in relief for homeowners who were impacted by the pandemic. These funds can be used to pay mortgages, insurance on the home, even utility bills.
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Biden Announces Record Amount of Climate Resilience Funding
By: New York Times
Aug 06,
2020
The Biden administration announced on Thursday a record injection of money to help communities gird against the effects of climate change, as disasters continue to pummel the United States.
The new funds — $3.5 billion in grants to states to protect against floods, wildfires and other threats — mark a shift in United States disaster policy as climate change gets worse: Rather than smaller, more targeted investments, the government is throwing huge sums of money at disaster preparation as fast as it can.
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HUD attempts to fix its own mistake
By: American Property Owners Alliance
Aug 02,
2020
The Department will reinstitute an Obama-era rule and rescind one put in place by the Trump Administration to prevent confusion with housing discrimination issues
The U.S. Department of Housing and Urban Development (HUD) is trying to right its own perceived wrong.
In late June, HUD published a proposal to the Federal Register that would restore the Obama-era discriminatory effects rule (first published in 2013) and rescind the Trump-era disparate impact rule (first published in 2020), stating the “2013 rule is more consistent with decades of caselaw and better effectuates the (Fair Housing) Act’s broad remedial purpose of eradicating unnecessary discriminatory practices from the housing market.”
There was a strong belief that the 2020 update to the Act would have made it harder for those who were trying to seek fair housing justice to legally prove discrimination and that it complicated the assessment of discrimination by mandating new requirements of proof, new legal defenses, and changing the pleading requirements to cloud whether or not the Fair Housing Act was, in fact, violated.
“We must acknowledge that discrimination in housing continues today and that individuals, including people of color and those with disabilities, continue to be denied equal access to rental housing and homeownership.”
The 2020 rule never actually took effect because of a court injunction issued in the U.S. District Court for the District of Massachusetts as part of the
Massachusetts Fair Housing Center v. HUD court case.
HUD indicated that by reverting back to the 2013 rule, it would allow for more clear analysis.
“We must acknowledge that discrimination in housing continues today and that individuals, including people of color and those with disabilities, continue to be denied equal access to rental housing and homeownership,” HUD Secretary Marcia Fudge told
Housing Wire. “It is a new day at HUD-and our Department is working to lift barriers to housing and promote diverse, inclusive communities across the country.”
There has been a lot of consternation surrounding these rule modifications or potential rule changes. Former HUD Secretary Ben Carson issued guidelines that outlined a five-step approach that required regulators to identify intentional discrimination by lenders.
Under the 2013 rule, which HUD is looking to reinstate, housing providers and lenders could be liable for discrimination tactics even if it were unintentional.
But the Trump Administration began pushing for change as far back as the former president’s first year in office. In 2017, he asked the Department of the Treasury to urge HUD to change the disparate impact rule.
That got a lot of push back from other elected officials, as well as other civil rights groups and trade organizations including the National Association of REALTORS ®. These organizations banded together with one voice, expressing concern that the new rule would spur on additional housing discrimination through structured racism.
After the controversial changes were issued in 2020, a federal judge delivered a preliminary injunction in October to stop HUD from implementing the rule until the legal challenge was resolved.
President Biden issued a memorandum in the first week of his presidency ordering HUD to take all the necessary steps to ensure compliance with the Fair Housing Act
On January 26, 2021, President Biden issued a memorandum ordering HUD to “take all steps necessary” to examine the effects of the 2020 Rule, including the effect that amending the 2013 Rule has had on HUD’s statutory duty to ensure compliance with the Fair Housing Act.
According to the notice issued by HUD, those who wish to comment on the proposed rulemaking may do so through Aug. 24, 2021.
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New data, same story – home prices are on the rise again
By: American Property Owners Alliance
Jul 19,
2020
Home prices went up again in May. No, we aren’t surprised either.
According to data released by the National Association of REALTORS® (NAR), the median existing home price across all housing types reached a record high of $350,300 in May. This was an increase of a whopping 23.6% from the same time in 2020.
Overall, home prices rose across the entire country for the 111
th consecutive month, dating back to March 2012.
Sales of existing homes dropped for the fourth straight month, down 0.9 percent from April 2021. Still, existing home sales remain up 44.6% year over year.
“Home sales fell moderately in May and are now approaching pre-pandemic activity,” Lawrence Yun, Chief Economist for NAR, said in a statement. “Lack of inventory continues to be the overwhelming factor holding back home sales, but falling affordability is simply squeezing some first-time buyers out of the market.
“The market’s outlook, however, is encouraging. Supply is expected to improve, which will give buyers more options and help tamp down record-high asking prices for existing homes.”
That increase in supply has already started to show. The total inventory, according to NAR, was 1.23 million units available, an increase of 7% from April, but still significantly less (20.6%) from May 2020.
“Lack of inventory continues to be the overwhelming factor holding back home sales, but falling affordability is simply squeezing some first-time buyers out of the market.”
While the overall supply of homes increased slightly from 2.4 months supply to 2.5 months from April, it is still dangerously low and pales in comparison to the 4.6 months supply from a year earlier.
Sales are happening fast and furious. NAR reported almost 90 percent of properties sold in May spent less than one month on the market. The average was 17 days, same as it was in April, but remains much more rapid than a year ago when the average was 26 days on the market.
Single family home sales also dipped by 1% from April, but the rate of those sales is still robust, clocking in at a 39.2% increase from the same time a year ago. The median existing single family home price increased again to $356,600, a 24.4% increase from last May.
There was no change in existing co-op and condo sales from April to May, but the adjusted annual rate of 720,000 units still marks a 100% increase from the same time in 2020. The median existing condo price is $306,000, a 21.5% increase from May 2020.
“NAR continues its advocacy efforts to find new, creative and effective ways to increase housing construction and supply,” NAR President Charlie Oppler said in the report. “The right policies will provide huge benefits to our nation’s economy, and our work to close this gap will be particularly impactful for lower-income households, households of color and first-time buyers.”
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New collaborative: Three million net new Black homeowners by 2030
By: American Property Owners Alliance
Jul 08,
2020
A new collaboration between industry and advocacy groups is determined to have three million net new Black homeowners by the year 2030.
They announced their formation on the Friday before Juneteenth, a day many businesses closed in recognition of the new Federal Holiday, at a press conference in Cleveland that featured Housing and Urban Development Secretary Marcia Fudge and Ohio Sen. Sherrod Brown.
The new group, known as the Black Homeownership Collaborative (BHC), unveiled their new website (
3by30.org) as well as a seven-point plan to accomplish this ambitious goal.
The genesis for the creation of this collaborative is that even today, 53 years after the signing of the Fair Housing Act, the Black Homeownership rate has reached levels not seen since housing segregation was legal in the United States.
When the housing market crashed in 2008, it created an era known as the Great Recession. In the decade since the end of that recession, Black homeownership has continued to decrease, while groups in other demographics have each seen a substantial recovery.
There are myriad reasons for this, including systemic racism and a continued lack of affordable housing in the country. Federal law suppressed homeownership among people of color which piled on top of more traditional hurdles facing first generation homebuyers - such as an inability to afford a down payment on the purchase of a home - and created the homeownership gap that exists today.
“The persistent gap in homeownership rates among Black and white Americans illustrates how racial inequality in our society translates into wealth inequality.”
According to the Federal Reserve Board, less than 20% of Blacks under the age of 35 own a home, a paltry number when compared with whites in the same demographic (41%). And while the gap closes in a little bit in the next age group (50% of Blacks aged 35-54 own a home compared to 70% of whites), five million additional Black homeowners would be needed to be on par with white homeowners.
According to the Urban Institute, if structural barriers aren’t addressed, by 2040 the Black homeownership rate will continue to fall, particularly for households in the 45-74 age demographic.
“The persistent gap in homeownership rates among Black and white Americans illustrates how racial inequality in our society translates into wealth inequality,” said Bryan Greene, vice president of policy advocacy at the National Association of REALTORS® (NAR) and a member of the BHC steering committee. “NAR is pleased to join this dedicated group of widely-respected organizations in the Black Homeownership Collaborative to pursue our shared goals.
“We look forward to continuing our work to secure federal and local-level policies which will raise Black homeownership levels, strengthen communities, and improve the American economy.”
The plan, set forth by the BHC, listed seven realistic steps that can make it possible to increase Black Homeownership by the target of 3 million net new homeowners by 2030.
These recommendations were put together by more than 100 housing leaders in both the industry and among housing advocacy groups over the past two years, including NAR.
They include:
- Homeownership counselling – This includes pre-purchase counseling, counselling borrowers who have been denied mortgage approval to turn a “no” into a “not yet”, and post-purchase counselling to sustain homeownership. This would also require additional funding for housing counselling agencies which, according to the BHC, are significantly underfunded.
- Down payment assistance – The legacy of historic denial of homeownership means that Black Americans are less likely to be able to rely on a loan from a family member or sale of an existing home to assist with down payment costs. Research from NAR has found that while almost four out of 10 white Americans – 37% – used the funds from the sale of their primary residence to serve as a down payment for a home, only 21% of Hispanic, 18% of Asian and 17% of Black Americans were able to do so. Black Americans and Hispanic Americans – 15% and 10% – were three and two times more likely, respectively, than white and Asian Americans – 5% each – to tap into their 401(k) or pension funds as a down payment source for a home purchase. As such, a sustainable and targeted down payment assistance program is needed.
- Housing Production – While housing supply shortages are a major problem across the country, the biggest area of need for housing is for lower -priced or entry-level priced homes that are affordable for first-time homebuyers or those re-entering the homebuying market after a hiatus. Local zoning restrictions, expensive permits, increased cost of lumber, and other price increases have led to a slowdown in production. Economic interventions in distressed communities, land use reforms, and public investment are needed to develop or rehabilitate more affordable homes.
- Credit and Lending – Black homebuyers have consistently struggled to build the credit necessary or be provided with the right loans to afford the purchase of a home as well as a monthly mortgage payment. Innovative mortgage credit scoring and mortgage products are essential for a successful strategy to get people the credit and lending they need. Not everyone is ready to own a home right away, but credit evaluators need to do a better job so they can refer those denied the necessary credit to housing counselors who can get them ready to buy in a short period of time. Additionally, mortgage products need to target populations that have not only been historically underserved by the mortgage finance system, they have been specifically excluded. Addressing these inequities requires direct interventions like special purpose credit programs (SPCP) and specified pools for mortgage securitization.
- Civil and Consumer Rights – Today’s homeownership gap was created by a dark legacy of credit access denials and lending discrimination to Black households and communities, which prevented them from building equity, and in turn, wealth. The federal government must ensure it enforces fair housing and consumer protection laws to prevent present-day discrimination from eroding what wealth Black Americans already possess.
- Homeownership Sustainability – According to the Urban Institute, Black homeowners have shorter spans of homeownership than white homeowners. While a lot of attention has been given to helping renters become homeowners, not as much has been paid to helping homeowners stay homeowners. According to the BHC, early intervention, ex-ante counseling, and COVID-19 related homeownership assistance are essential components of sustaining homeownership.
- Marketing and Outreach –According to Freddie Mac, prior to the COVID-19 pandemic there were at least three million Black households identified as mortgage-ready and more than two million were able to meet income requirements but didn’t have the requisite credit history for home loan requirements. As a result, it’s going to require strong marketing and outreach to let these households know they can become homeowners and start accruing equity and household wealth. According to the BHC, many factors contribute to the need for a sustained and targeted marketing push: the impact of mass foreclosures and predatory equity-stripping schemes in communities of color during the Great Recession; the multigenerational impact of racism on attitudes about the meaning of “the American Dream;” a lack of informed parental support and guidance available to first-generation homebuyers; and significantly higher levels of student debt despite high incomes.
The BHC believes that if their seven-step plan is followed, that the ambitious goal of three million new net Black homeowners by the end of the decade is both a realistic and exciting possibility.
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National eviction moratorium extended again; upheld by Supreme Court
By: American Property Owners Alliance
Jul 08,
2020
It’s safe to say when housing providers first decided to invest in rental properties, they never expected to have such disdain for the Centers for Disease Control and Prevention (CDC).
However, through the CDC, the Biden Administration extended the national eviction moratorium for a fourth time – this time through July 31, 2021 – although the CDC indicated this would be the final extension to the moratorium.
This is to the relief of many renters and the disdain of many housing providers who are continuing to pay the mortgage on properties that renters are not paying the rent for as a result of the financial burden brought on by the pandemic.
Hundreds of rental assistance and relief programs have been created in the past 15 months. But because of a lot of red tape surrounding the application process for that rental assistance, a large portion of the rent aid has not gone to the people who need it most.
So, the race against the clock is on to get the funds to the people who are truly struggling with paying the rent as a result of the pandemic, but these programs weren’t built to move with such alacrity.
Money is also available for the housing providers, but their acceptance of the relief comes with caveats.
According to the New York Times, the funding pays for as much as a year of unpaid rent and three months of future rent payments for eligible tenants.
Meanwhile, housing providers can also apply for the relief, and although the program doesn't mandate that they accept the money, those who do take the funds must agree to not evict the qualifying tenant for at least 12 months, with very few exceptions.
While housing providers can start the application process, tenants have to sign an online application, and an application cannot be saved and edited later, which has led to a lot of frustration for renter applicants.
Meanwhile, tenant rights groups had been lobbying for the moratorium to continue because without rental assistance funds being distributed, they feared a wave of evictions would soon follow.
According to the Times that concern, coupled with lagging vaccination rates in certain parts of the country, is what finally convinced the White House to approve the extension.
However, that wave may still be coming next month.
On the other side of the conversation were those fighting for the rights of the property owners, who have been left on the hook for monthly mortgage payments that were being covered by rent pre-pandemic, but they are now left making those payments without the income necessary to pay it.
However, these housing providers suffered a second blow when the Supreme Court voted 5-4 to uphold the CDC moratorium.
Justice Brett Kavanaugh seemed to cast the deciding vote. According to SCOTUS Blog, although Kavanagh agreed with the plaintiffs that the CDC exceeded its legal authority in issuing the national moratorium, he felt that since it is set to expire in a month and there will be no further extensions, it’s more pragmatic to just let the moratorium run its course at this stage. As such, he sided with Chief Justice John Roberts and justices, Elena Kagan, Sonia Sotomayor and Stephen Breyer.
However, like the CDC moratorium, many state and city eviction bans across the country are set to expire during the summer months, which will soon leave many renters in a precarious position.
Many renters have accrued insurmountable debt in the past year and won’t be able to make up the difference.
This could leave them without a roof over their heads. As for the housing providers, without the rent money being paid to them, some will pull their properties off the market until they can get themselves caught up on their mortgage payments, further jeopardizing the availability of affordable housing for all Americans.
According to the Times, the Biden administration is ramping up its efforts to stem the tide that is coming with likely eviction filings in August. There will be an affordable housing and evictions summit this month at the White House. Guidance will come from the Treasury Department on how to more efficiently and effectively distribute emergency aid to both renters and housing providers that were part of the pandemic relief bill. The Department will also implement better and more regular communication with state and local officials, as well as legal aid organizations, to try and limit evictions once the moratoriums end.
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Fannie Mae: Homebuyers weary of housing market
By: American Property Owners Alliance
Jun 25,
2020
When Russ Joy and his wife Nancy bought their starter home in 2016 in the town of Royersford, PA, the notion was that they would start a family, and in a few years, upgrade to a bigger home.
Now, with three young children, the time has come, but the plan that the Millennial couple had put together to make this happen has been unable to come to fruition.
That’s because the Joys - both of whom were public school teachers until Russ took a job in the writing/marketing field at the completion of the 2020-21 school year - have been unable to compete with the craziness of the housing market, even if they are to make about $50,000 on the sale of the home they are in right now.
“It’s bad enough that prices have already become inflated beyond what we expected,” Joy said. “It’s demoralizing to see so many properties going for tens of thousands of dollars over the asking price with cash offers.
“As a young family, trying to expand, there is no way to be competitive with all-cash offers.”
It’s not just the cash offers. Or bids coming in way above list. Or even some buyers being willing to buy the property sight unseen.
The Joys thought they had found their home in nearby Gilbertsville, but they were unable to even get to the table because the sellers and the selling agent pushed the envelope of ethics to deny them their bid – which was the lone bid on the home at the time.
Having the upper hand, the seller and their agent not only wanted a filing of the financial disclosures of the monetary assets of the Joys, but also the family who are in agreement to buy the Joys current home.
The Joys agent checked in with the ethics board to see if this was fair, and the Board deemed it was. But it’s not like they were outbid for the home, rather they were kept from making the purchase because they are a young family of five and the family buying the Joys current home is an FHA loan applicant.
“It’s like they are using our age and the fact that our buyers are potentially being backed by a Federal loan against us,” Joy said. “It’d be fine if a month or two from now we found out we were just outbid, but if they aren’t selling to us based on who we are, or who the people are that are buying our house seems really discriminatory to me.”
The Joys are not alone with their frustrations.
According to the latest Fannie Mae Home Purchase Sentiment Index (HPSI), only 35% of consumers believe now is a good time to buy a home, down from 47% in April. And those who believe it is a bad time to be a homebuyer increased to 56% from 48%.
“Consumers appear to be acutely aware of higher home prices and the low supply of homes, the two reasons cited most frequently for that particular sentiment,” Doug Duncan, senior vice president and chief economist at Fannie Mae told Housing Wire. “However, despite the challenging buying conditions, consumers do appear more intent to purchase on their next move, a preference that may be supported by the expectation of continued low mortgage rates, as well as the elevated savings rate during the pandemic, which may have allowed many to afford a down payment.”
The lack of available homes, combined with the higher prices and cash offers or over-market bids, are discouraging homebuyers in the short-term. There are other factors, such as job creation or job stability, and a rebounding economy actually saw a bump in the HSPI index by one point (80) in May.
Still, because the housing market still favors the sellers, more than two-thirds of potential sellers surveyed by Fannie Mae in June said now is a prime time to list a home, which is no different than it was in May.
Likewise, the percentage of respondents who think home prices will continue to rise over the next 12 months decreased slightly, but insignificantly from 49% to 47%. That two percent difference shifted to those who feel prices will stay the same (up from 27% to 29%). A total of 17% of respondents feel prices will come down, and that number remained unchanged from May.
No matter how you slice it, it seems like the feelings of homebuyers aren’t going to be much different than what the Joys are experiencing for the remainder of the year, if not longer.
“It’s been emotionally draining,” Joy said. “And the joy of looking for a house has been taken from us.”
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Infrastructure: Crossing the Bridge to Better
By: American Property Owners Alliance
Jun 23,
2020
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How do we build the bridge to a more sustainable, equitable future for all property owners? Smart investments in infrastructure today. Click on a subject area below to learn more about infrastructure and what’s needed to cross the bridge to better communities.
Broadband
Currently, 19 million Americans do not have access to broadband at threshold speeds.1
When communities gain access to high-speed internet, businesses grow, jobs are created, and according to a recent study, property values are 6% higher.2 Return to top.
Waste and Water
Only 37% of the nation’s total water infrastructure capital needs were met with previous funding.3
There is a critical need to maintain and expand systems that deliver clean drinking water to property owners. We must invest in waste and water system improvements now to conserve water and keep communities safe and healthy. Return to top.
Roads and Bridges
More than 40% of our country’s road systems are in poor or mediocre condition, costing drivers over $1,000 every year in wasted time and fuel. 4
Roads play a critical role in the transfer of goods and services that fuel local economies. We must invest in roads and bridges now to support local economies, improve traffic congestion and road safety, and lower transportation costs for property owners. Return to top.
Mass Transit
45% of Americans do not have access to public transportation.5
It is time to invest in expanding access to mass transit so that people can more easily access healthcare, jobs, schools and more. Mass transit also raises property values and improves the quality of neighborhoods. Return to top.
Sign The American Property Owners Alliance petition to Congress urging them to them to support smart infrastructure investment.
Click Here
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Most federal rental assistance money not being delivered to those in need
By: American Property Owners Alliance
Jun 21,
2020
The U.S. Government has allocated $45 billion for rent relief since December 2020, but that money has barely made an impact, and with the eviction moratorium about to run out, it’s likely this assistance money will never be used for its intended purpose.
States, cities, and smaller municipalities have created more than 340 new programs in the wake of the COVID-19 pandemic to help distribute federal rental assistance dollars. However, according to Vox Media, the state programs, which have received the lion’s share of the funding, have only distributed a small percentage of the money they have received.
The problem has been that while the notion of providing billions of dollars in much needed rental assistance, the devil was in the details to make sure the right people who actually needed the aid got it.
That created a whole mess of red tape, forcing renters to provide proof of need and identity, something that the people in the most dire of circumstances are unable to produce. Additional problems are that while these programs were created and existed, not enough grassroots work was done to let the people know who needed the assistance that they were available to help.
As such, only a small percentage of those in need of rent relief even knew relief was available to them.
According to the National Multifamily Housing Council, a large majority of American renters made at least a partial rent payment in May.
However, because most people consider their rent the most important bill they have to pay, they often eschew other required payments, or put themselves into a worse-off financial situation. Just because the rent has been paid, doesn’t mean money wasn’t borrowed, or credit card debt didn’t pile up, or valuable possessions weren’t sold - just to scrape by for another month.
The Centers for Disease Control and Prevention’s (CDC) eviction moratorium is set to expire at the end of June, barring another extension. With there being court cases across the country saying the CDC exceeded its authority by imposing the moratorium in the first place, another extension seems less likely.
This will force state and local governments to decide whether to keep their own moratoriums in place or have an onslaught of evictions begin as soon as July.
This appears to be a lose-lose situation for local governments. If they keep the moratoriums in place without the rental assistance money getting to the people who need it, more mom-and-pop property providers will fall behind on their mortgage payments without the rent coming in to supplement it. As such, many of these property owners will pull their property from being available to rent, trimming further an already slim inventory of affordable housing.
According to the Department of Housing and Urban Development, 41% of all rental units in America are owned by small business housing providers operating on very slim profit margins. These rentals tend to be less expensive than single family units or larger, corporate-owned, multi-family complexes.
If they choose not to keep the moratoriums in place, evictions will skyrocket, backlog, and create mayhem, all the while many low-income individuals and/or families will have to find somewhere to sleep or risk homelessness.
Either way, it’s not an ideal situation. Finding ways to streamline these rental assistance dollars - and quickly - is the best path to stemming the rent crisis and ensuring that everyone can have a roof over their head.
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Biden’s Neighborhood Homes Tax Credit aims at revitalizing low-income communities
By: American Property Owners Alliance
Jun 10,
2020
It’s not a surprise to learn there’s a housing shortage in America. There are countless stories out there talking about ways to combat that shortage.
The most common solution people support is building more homes. And while that is definitely a worthy strategy, it would take years to overcome the current shortages if that were the only plan of attack.
Another one that has cropped up, as part of the Biden Administration’s infrastructure plan, is the notion of rehabilitating existing homes that may be out of date and get them up to code so they can once again be livable.
According to the National Association of REALTORS®, there were 1.7 million older housing units that were demolished or taken out of stock in an eight-year span between 2009 and 2016. According to Freddie Mac, if those homes were renovated rather than demolished, the housing supply would have at least doubled, if not grown even larger, by 2017.
The Biden Administration wants to harness that notion and use it to help stop the housing shortage and make more homes available, especially for lower-to-middle income earners.
On June 1, Biden announced his plan for the
Neighborhood Homes Tax Credit, an initiative that would incentivize rehabilitation, rather than total demolition, of outdated homes.
Investors would be able to claim the credit on their federal tax returns if they sell the home and it is then occupied by an eligible buyer who makes no more than 140% of the area median income.
The credit would make up the difference between the costs of the rehabilitation and development, and the eventual sales price. However, there would be a cap on the final sales price that could not exceed four times the area median family income.
In addition, homes must be located in areas where there is a poverty rate of at least 130% of the area poverty rate, the median family income is below 80% of the area median, and median home values are lower than the area median in order to be eligible for the credit. The White House indicated that would cover approximately 25% of all census tracts.
According to a White House press release:
- Approximately 40 percent of U.S. housing stock is at least 50 years old, and more than 15 million properties are vacant even as families struggle to find affordable housing. In many neighborhoods, these properties make it difficult to attract or retain local homebuyers, reducing property values and community wealth.
- Modeled after the Low-Income Housing Tax Credit and the New Markets Tax Credit, state housing finance agencies would receive an annual allocation of Neighborhood Homes Tax Credits based on population.
- Each state’s housing finance agency would then award tax credits to project sponsors—developers, lenders, or local governments—through a competitive application process. Sponsors would use the credits to raise investment capital for their projects, and the investors could claim the credits against their federal income tax when the homes are sold and occupied by eligible homebuyers.
- As mentioned earlier, these tax credits would cover the difference between total development costs (including acquisition, rehabilitation, demolition, and construction) and the sales price. This would, for example, make it financially viable to spend $120,000 acquiring and rehabilitating a vacant property that would only sell for $100,000 on the open market by offering a $20,000 tax credit to cover the difference.
- The Tax Credit would bolster homeownership rates for low- and moderate-income homebuyers in underserved communities, while protecting against gentrification.
The U.S. is home to consistent disparities in homeownership and wealth. Across the country, just 49 percent of Hispanic Americans and 45 percent of Black Americans own their own homes, compared to 74 percent of White Americans.
As home prices rise, the proposed Tax Credit would make a generational investment in homeownership affordability, thus enabling low- and moderate-income buyers – including homebuyers of color – to purchase their own homes and build wealth.
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HUD budget to expand greatly if Biden plan approved
By: American Property Owners Alliance
Jun 09,
2020
The Department of Housing and Urban Development (HUD) could be in for a big financial boost, as part of President Biden’s proposed budget plan, that could make a huge impact on homeownership and housing in America.
Biden’s plan would appropriate about $150 billion to HUD that would also create tens of thousands of jobs for working-class families that do not require a college degree.
Recently, HUD secretary Marcia Fudge toured Kansas City with Mayor Quinton Lucas and Missouri Rep. Emanuel Cleaver. While there, she highlighted how Biden’s American Jobs Plan will resuscitate American housing infrastructure and, at the same time, combat the ever-growing affordable housing crisis in the country.
“Our homes can serve as a bridge to greater opportunities and a better life,” Fudge said in a press release. “The American Job Plan is a historic, once-in-a-generation investment in our nation’s infrastructure – including our housing infrastructure. If we want the United States to remain the greatest nation in the world, then we must first take care of home – in the most literal sense. To pass an infrastructure plan that fails to expand affordable housing and to revitalize our communities would be akin to building a road that leads to nowhere.”
The plan also calls for guaranteeing one million housing units to be dedicated for low-income families and addressing other long-suffering housing infrastructure needs, such as health and safety concerns.
The jobs that would be created with this plan would allow for the development, upgrading, and retrofitting homes in the same communities where the jobs would be created.
These new jobs would come with a requirement that employers pay workers competitive wages, have local workforce and hiring agreements, guaranteeing jobs to the people who live in the specific communities, and additionally use workers from labor training and apprenticeship programs.
Another facet of the proposal would require these employers to not interfere with their employees who try to organize a union so they could negotiate and collectively bargain employment contracts. This means the employers can not require their employees to undergo mandatory individual arbitration.
Specifically, the plan calls for a $5.4 billion expansion of housing vouchers to cover 200,000 additional families. Furthermore, homeless assistance grants would increase by $500 million, which would support another 100,000 additional households that includes victims of domestic violence and homeless youth.
Other specifics that are part of the plan include:
- Building affordable housing not just in big cities, but in small towns across the country.
- Incentivizing local governments to remove exclusionary zoning and restrictive land use policies.
- Investing $2 billion in HUD’s Section 202 Supportive Housing for the Elderly program to increase supply and enhance supporting services for affordable housing for low-income older Americans.
- Removing lead-based paint from approximately 175,000 housing units and, in the process, make multifamily homes more energy-efficient and create communities that are more resilient to harsher climates.
- Meet the housing needs of tribal communities.
These budget increases, as part of the plan, are likely a starting point for negotiation in Congress and likely will be trimmed down or have changes in some capacity to garner the bi-partisan support that will be needed to be approved.
Vermont Sen. Bernie Sanders, who chairs the Senate Budget Committee, praised the increases in funding for affordable housing through HUD, as well as other funding increases.
“At a time when over half of our people are living paycheck to paycheck, and millions of elderly people are experiencing poverty, this budget goes a long way in providing the help that so many Americans desperately need,” Sanders said in a statement, according to
Housing Wire.
Congress has to pass a budget before Oct. 1, the beginning of fiscal year 2022.
In his first year in office, Biden and his administration have taken a significant focus on affordable housing.
Separate from his budget proposal for HUD
, Biden’s $2 trillion infrastructure plan includes $213 billion to be allocated for housing, specifically for low-income homeowners and first-time homebuyers.
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Biden hoping for a home run to aid first-time homebuyers
By: American Property Owners Alliance
Jun 09,
2020
President Joe Biden wanted a tax credit for first-time homebuyers. He needed Congress to step up to the plate.
And while there’s still some work to do before hitting the ball out of the park, Congress at least gave him a line-drive base hit in its first at bat.
In April, U.S. Rep., Jimmy Panetta of California and Rep. Earl Blumenauer of Oregon introduced new legislation that is known as the “First-Time Homebuyer Act.” The new bill, being discussed in Congress, would provide a tax credit for first-time homebuyers that would equal 10% of the purchase price of the home, or $15,000.
Eligible buyers are those who have not owned a home or purchased a home in the three previous years.
Another condition of eligibility is that participants must not make more than 160% of the median income for the area and the purchase price of the home must be no more than 110% of the median purchase price of the area.
Borrowers will be able to claim the credit for any home purchased in 2021 or beyond.
The idea was to target those individuals who are low or middle-income earners, and they would have to use the home as a primary residence for at least four years. If not, a portion of the credit would be recovered through taxes.
This bill is not to be confused with different legislation that would provide down payment assistance via a closing grant to first-time, first generation homeowners. This bill - which part of Biden's infrastructure plan - should not be confused with different legislation that would provide down payment assistance via closing grant to first-time, first-generation homeowners, which is not affiliated with Biden’s plan.
That said, there’s a possibility that both see the light of day.
“This legislation is just one element of the big, bold housing agenda that we are promoting to combat the housing affordability crisis and address centuries of overtly racist and discriminatory housing policies that have left massive wealth, homeownership, and opportunity gaps between white communities and communities of color,” Blumenauer said in a statement provided to Housing Wire.
The legislation is designed to build wealth within communities that face systemic exclusions in the housing market.
This isn’t the first time that a first-time homebuyer tax credit is being considered in Congress. In fact, in 2008, Congress passed an overwhelmingly successful law that created a $7,500 tax credit for first-time homebuyers and 1.5 million homebuyers took advantage of the credit.
In 2009, the credit increased to $8,000.
Things went awry when it became obvious that the Internal Revenue Service wasn’t providing the proper oversight, and an IRS watchdog found more than 74,000 questionable claims for the tax credit that the IRS simply missed.
In those instances, there were individuals taking the credit who did not purchase a home. There were also borrowers under the age of 18 and there were those who received the credit who had, in fact, owned a home within the previous three years.
As much as first-time homebuyers would champion this legislation becoming law, with the way Congress moves, it might not be worth the wait.
In other words, if you are a first-time homebuyer, you might want to act now and not sit around and wait to see if Congress can pass this bill.
Properties are being gobbled up fast. Sometimes mere days after being listed. If you are waiting, home prices will continue to rise, the market will become more competitive, and you could be left standing there with the bat on your shoulder as strike three blows past you.
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Report: Single-Family home prices up year-over-year
By: The Title Report
May 14,
2020
ATTOM Data Solutions’ property tax analysis of around 87 million single-family homes around the country showed that $323 billion in property taxes were levied on single-family homes in 2020, up 5.4 percent from $306.4 billion in 2019.
The average property tax of $3,719 for a single-family home in 2020 rose 4.4 percent from $3,561 in 2019, while the effective property tax rate of 1.1 percent dipped from 1.14 percent in 2019.
“Homeowners across the United States in 2020 got hit with the largest average property tax hike in the last four years, a sign that the cost of running local governments and public school systems rose well past the rate of inflation. The increase was twice what it was in 2019,” ATTOM Data Solutions Chief Product Officer Todd Teta said in a release. “Fortunately for recent homebuyers, they have mortgages with super-low interest rates that somewhat contain the cost of homeownership. But the latest tax numbers speak loud and clear about the continuing pressure on both recent and longtime homeowners to support the rising cost of public services.”
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The results of homeowner tax reform are in: Americans are voting with their feet
By: Bankrate.com
May 14,
2020
Once upon a time, the federal tax benefits of homeownership were equal. The write-off you got in California or New York was the same as the break you received in Montana or New Mexico.
With the tax reform of 2017, however, that’s no longer the case. Changes in tax policy have caused homeowners to rethink their real estate options, a trend accelerated by the COVID-19 pandemic. The result? For some, it’s goodbye, New York. So long, San Francisco. Hello, Orlando. Howdy, Austin.
“For the past two years, I’ve felt like everyone is leaving Los Angeles, and that has intensified during the pandemic,” says Lindsay Katz, an agent at real estate brokerage Redfin in Los Angeles. “More than half of my sellers are moving to a different area. A lot of young families are moving back to their hometowns to be near their parents, moves they can now make because they’re working remotely.”
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Is the housing bubble going to burst? Don’t hold your breath
By: American Property Owners Alliance
May 14,
2020
If you are expecting the latest housing boom bubble to burst, don’t.
That’s because, as National Association of REALTORS® (NAR) chief economist Lawrence Yun said, “This (boom) is not a bubble. It’s simply a lack of supply.”
As basic as he makes that sound, it’s the reality. Housing is booming in America because of an historic low in housing stock on the market.
As a result, prices are going up, and in some places, buyers are buying homes above the list price just to ensure they win the bid.
All that’s doing is pricing out a lot of hard-working Americans from achieving the dream of homeownership.
And it’s not a good thing long-term, because if this isn’t a bubble, as Yun said, that means the prices aren’t going to plummet anytime soon, if much at all.
“This (boom) is not a bubble. It’s simply a lack of supply,” says NAR chief economist Lawrence Yun.
According to data from NAR, there are just 1.03 million homes available in America. In July 2007, there were four times as many homes on the market.
Prices are up 17.2% since March 2020 and the number of active listings in that same time period is down 54%.
Some cities are seeing a ridiculous jump in list prices. For example, the median price of a single-family home in Austin, Texas is now $520,000 – a 40% jump from the same time in 2020.
While mortgage rates are now back above 3% and likely not going to get any lower, that percentage is still appealing for buyers Combine affordable mortgages with a slowdown in housing development brought on by the COVID-19 pandemic; a flight toward bigger, suburban homes as people are finding they can effectively work from home; and a good stock market, allowing some individuals to have more money for a down payment, and it’s easy to see why prices are skyrocketing.
This is hurting the first-time homebuyer greatly, as they don’t have the personal wealth to compete with these individuals on the purchase of a home. Add in the fact that large corporations are buying up available homes and renting them, knowing the market is tough on Millennials and Generation Z, and the number of owner-occupied homes is drying up.
Some buyers are even gambling and willing waive the right to inspect a property or other financial contingencies before buying the property. Heck, some homes are selling sight unseen.
The one silver lining is rents seem to have stabilized, so people can find a way to get a roof over their heads. Albeit these are not always ideal circumstances as renting makes it harder to save to buy a home and start accumulating wealth.
But that’s only a small ray of sunlight. According to Yun, we are flirting with a dangerous situation where if rates remain low, demand picks up with new jobs, there's no increase in supply, and the only thing that moves is home prices, more and more people will get priced out.
“That would mean we are creating a divided society of haves and have-nots," he said.
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States with the highest property taxes
By: Yahoo.com
May 14,
2020
In some states, homes are cheap, property tax rates are less than half of 1% and the average property tax payment is just a few hundred bucks per year. In the most expensive states, however, rates soar over 2%, homes are pricey and average annual property tax bills routinely creep above $5,000 and beyond.
Using data from the Tax Foundation, GOBankingRates ranked the states with the highest property taxes in America, including the percentage rate, the average dollar amount paid and the average home value. The results are listed in ascending order from least expensive to most. For context, the national average effective property tax is 1.06%, the U.S. average home value is $263,351 and the average annual property tax bill is $2,787.
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Congress considers $15,000 first-time homebuyer credit
By: CPAPracticeAdvisor.com
May 14,
2020
A refundable, advanceable tax credit of up to $15,000 for first time homebuyers, being considered in future tax and economic stimulus legislation, could catapult millions of renter households into first-time homeownership, a
new Zillow analysis suggests.
While Congress has already passed billions in aid over the past year to provide homeowner and renter relief, housing will remain a key area of focus through 2021 — especially as Congress continues to grapple with decreasing affordability.
Zillow research found that with a 3.5% down payment on a 30-year mortgage with a 3% interest rate, about 9.3 million renter households in the U.S. (27.4%) would spend less than a third of their income on the monthly payment for the median home sold in their metro in 2020
. An advanceable tax credit would remove for them what two thirds of renters cite as the single biggest barrier to homeownership --
saving for a down payment. Other hurdles include qualifying for a mortgage and job security.
A tax credit could be even more beneficial to renters in relatively more affordable metros, like Pittsburgh (40.5% could afford a median mortgage), Cincinnati (39.7%), Cleveland (39.0%), and St. Louis (38.5%). Costly California metros like Los Angeles (10.1%) and San Jose (12.1%) have some of the smallest share of renters that could afford a mortgage, but the program would still significantly impact thousands in those regions.
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The U.S. is in the midst of a housing crisis. What can be done about it?
By: Philadelphia Inquirer
May 13,
2020
The nation is struggling with an affordable-housing crisis. There is not enough housing in communities across the country, including here in Philadelphia. This means families must pay more for their housing, renters have less to get by on at the end of the month, homeownership is out of reach for too many, and those of modest means are forced to live farther from decent jobs.
Homebuilding collapsed during the housing crash more than a decade ago and has been slow to recover. Construction of high-end homes and apartments recovered first, and there is now an oversupply in some urban areas across the country.
However, the construction of affordable housing — homes reasonably priced for lower-income households to rent or own — has only recently begun to increase and continues to lag demand. The shortfall is so large that it would take an extra year of construction at its current pace to close it.
The lion’s share of the undersupply is concentrated in areas that offer significant economic opportunity, driving up house prices and rents for low- and moderate-income families precisely where they want to live.
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Housing advocates want equity provisions in Biden’s proposed infrastructure bill
By: Roll Call
May 07,
2020