In a significant yet under-the-radar initiative, President Biden is intensifying efforts to persuade local governments to relax single-family zoning laws, which critics argue limit affordable housing and perpetuate racial disparities. Biden’s recent budget request proposes a $10 billion state and local grant program to support zoning reforms, a substantial increase from the $1.7 billion proposed in his earlier Build Back Better plan. This funding aims to stimulate affordable housing development and infrastructure improvements in communities that revamp their zoning laws.
The proposed grants would incentivize changes by providing financial support for housing-related infrastructure like roads, water, and sewer systems, and also cover costs such as research and technical assistance. However, the success of this proposal hinges on congressional approval, where bipartisan support remains uncertain despite some lawmakers’ interest in zoning reform.
This federal intervention in local zoning is notable as cities nationwide grapple with housing shortages and the Biden administration seeks to address racial inequities. However, experts debate the potential impact of such a program on increasing affordable housing availability. While former President Trump opposed similar zoning changes, accusing them of federal overreach, Biden’s advisors argue that these reforms could significantly enhance access to affordable housing and promote racial equity in homeownership.
In practice, Biden’s approach contrasts with more coercive strategies previously proposed by some Democrats, like withholding federal transportation funds from cities that maintain single-family zoning. Instead, Biden’s plan offers financial incentives to communities willing to update their land-use policies. Tracy Hadden Loh from Brookings Metro sees this as a positive “reward for doing the right thing.”
Single-family zoning typically requires minimum lot sizes and single houses per property, contributing to higher housing prices and limiting access for low-income and minority families. Biden’s administration has consistently highlighted the detrimental effects of such exclusionary practices.
The budget proposal indicates that grants will target jurisdictions adopting progressive housing policies to remove barriers to affordable housing development. This includes encouraging the construction of accessory dwelling units and small to moderate multifamily housing. Additionally, Biden’s budget includes significant increases in Low-Income Housing Tax Credits and affordable housing grants.
Despite the proposed incentives, the effectiveness of zoning reforms in addressing housing shortages is debated. For instance, while cities like Minneapolis and states like Oregon have made strides in eliminating single-family zoning, the demand for affordable housing still outpaces funding availability. The Biden administration’s proposal aims to elevate zoning reform to a national priority, recognizing the role federal support can play in overcoming local resistance to such changes.