Pence group warns that Biden’s plans for addressing housing affordability will exacerbate the issue

It is evident from the policy memo issued by Advancing American Freedom (AAF) that the nonprofit political advocacy group founded by former Vice President Mike Pence is concerned about President Biden’s plans for the federal government to intervene in the housing market. AAF warns congressional lawmakers that Biden’s proposals could potentially lead to a housing crisis of a magnitude not seen since the Great Recession of 2008. The group is particularly critical of the administration’s proposal to guarantee certain second mortgages through Freddie Mac, which could result in the government-backed entity taking on an additional $3 trillion in liabilities. AAF argues that such a move would fuel inflation and create instability in the mortgage market.

In addition to the proposed guarantees for second mortgages, AAF is also opposed to Biden’s plan to weaken credit standards for borrowers and his proposal to offer $10,000 subsidies for first-time homebuyers and starter-home sellers. The group asserts that the affordable housing crisis in the U.S. is primarily a supply-side issue stemming from a shortage of homes, and Biden’s approach would only exacerbate the problem by increasing demand. AAF is urging conservatives in Congress to utilize the Congressional Review Act to halt the administration’s proposals and to push for an end to the government’s involvement in the mortgage business by terminating the conservatorship of Fannie Mae and Freddie Mac.

According to AAF Executive Director Paul Teller, the government could address the shortage of housing by returning surplus federal lands to the states and eliminating agencies like the EPA, which impose burdensome environmental regulations that drive up the cost of housing. Teller argues that Biden’s proposals would only perpetuate the demand side of the issue, potentially leading to a repeat of the 2008 housing crisis. He emphasizes the need for the government to step back from the mortgage business to prevent further negative implications for the American people.

The White House has responded to AAF’s concerns by highlighting the actions taken by President Biden to lower housing costs and increase the housing supply. The administration points to a record 1.7 million housing units currently under construction and emphasizes the importance of passing Biden’s housing plan, which aims to build over two million homes, provide a $10,000 tax credit for first-time homebuyers, and crack down on corporate actions that exploit renters. White House spokesperson Jeremy M. Edwards criticized Republicans in Congress for attempting to cut taxes for the wealthy and large corporations instead of supporting the President’s plans to lower housing costs.

In conclusion, the ongoing debate between the Biden administration and AAF highlights the differing perspectives on how best to address the affordable housing crisis in the U.S. While the administration emphasizes the need for government intervention to increase housing supply and lower costs, AAF contends that such actions could lead to a repeat of the 2008 housing crisis. The clash underscores the complex nature of housing policy and the challenges of finding solutions that balance the interests of various stakeholders. It remains to be seen how these divergent viewpoints will inform future housing policy decisions and their impact on American homeowners and renters.