Vice President Harris Announces First-of-Its-Kind Funding to Lower Housing Costs by Reducing Barriers to Building More Homes
Today, Vice President Harris announced the recipients of new grants under the Pathways to Removing Obstacles to Housing (PRO Housing) grant competition with the goal of building more housing, and lowering housing and rental costs for American families. The President and the Vice President know that the cost of housing is too high. That’s why the U.S. Department of Housing and Urban Development (HUD) created PRO Housing a first-of-its-kind program that provides funding to communities actively addressing barriers to building new units. Funding will support updates to state and local housing plans, land use policies, permitting processes, and other actions aimed at building and preserving more affordable housing.
We are starting to see some progress. More housing units are under construction during this Administration than at any time in the last 50 years, rents have fallen over the last year in many places, and the homeownership rate is higher now than before the pandemic. But rent is still too high, and Americans who want to buy a home still have difficulty finding one they can afford. That is why President Biden and Vice President Harris are committed to lower housing costs, including by increasing housing supply by building and preserving more homes. In the State of the Union, President Biden called on Congress to pass his and Vice President Harris’s plan to build two million additional homes, increase rental assistance, and help first-time and first-generation homebuyers.
Recognizing that every community is different, the grants announced today are critical to breaking down local barriers that stand in the way of housing development and lower costs. Common barriers to housing identified in the PRO Housing applications include the high cost of land and development, underutilized vacant land and property, aging housing stock, inadequate infrastructure, displacement pressures, risks of extreme weather or environment hazards, and outdated land-use and permitting policies and processes.
The demand for these awards was substantial, with requests exceeding $13 for every $1 available. Applications came from more than 175 communities across 47 states and territories, representing diverse demographics and geographic settings. The Biden-Harris Administration will also release an additional $100 million in PRO Housing funding later this summer.
The awards announced today build upon the historic levels of funding made available for housing, infrastructure, and community resilience by the Biden-Harris Administration. The President’s FY25 Budget proposes a historic investment of more than $258 billion in housing, including a $20 billion Innovation Fund for Housing Expansion, which would provide critical support to further eliminate barriers to housing, spur development, and encourage innovative housing solutions. The President’s FY25 Budget also proposes an additional $100 million request for PRO Housing grants. Vice President Harris has been highlighting the Administration’s investments in affordable housing and homeownership as part of her nationwide Economic Opportunity Tour in Georgia, Michigan, Wisconsin, and North Carolina.