STREAMLINING HOUSING DEVELOPMENT:
In a significant move for the housing sector, President Donald J. Trump has officially enacted an Executive Order aimed at dismantling regulatory hurdles that impede housing construction and inflate costs for American families.
- The Order mandates the EPA Administrator and the Secretary of the Army to reassess and modify stormwater, wetlands, and other water-related permitting requirements. The goal? To cut down on the costs associated with building and owning homes, expedite Federal regulatory approvals, and improve home insurability.
- Additionally, the Secretary of Commerce, Secretary of Housing and Urban Development, Secretary of Transportation, and the Director of the Federal Housing Finance Agency (FHFA) have been instructed to eliminate excessively stringent rules and reform programs that hinder residential development and inflate housing expenses.
- The Secretary of Agriculture, Secretary of Housing and Urban Development, Secretary of Energy, and the Director of the FHFA are charged with revising or scrapping burdensome energy, water, and alternative-energy requirements for housing, including manufactured homes.
- The Chairman of the Council on Environmental Quality is tasked to issue guidance that maximizes categorical exclusions under NEPA for housing construction and associated activities.
- The Advisory Council on Historic Preservation will develop guidance to simplify historic preservation reviews, thereby easing obstacles to the construction of housing and related infrastructure.
- The Order also encourages Federal agencies to incentivize State and local governments that adopt regulatory best practices, aiming to expedite permitting processes, scale back “green” building codes, and reduce costly design and construction mandates. This includes endorsing innovative home construction methods and extending residential development opportunities.
- Moreover, the Order aligns Opportunity Zone incentives with single-family home development and New Markets Tax Credit programs to stimulate new housing construction.
ADDRESSING HOUSING AFFORDABILITY:
Unraveling layers of bureaucratic red tape, sluggish permitting processes, and costly environmental mandates imposed by progressive policymakers at various levels of government has become essential. These factors have rendered the construction of homes in America increasingly arduous and expensive, leaving families struggling to find affordable housing and the American Dream slipping further out of reach.
- Unnecessary regulatory barriers have constrained supply, delayed construction, and escalated the costs associated with building a home — expenses that ultimately fall on homebuyers and renters.
- For instance, certain states and localities have embedded prescriptive green energy mandates within their building codes, potentially adding over $30,000 to construction costs, as noted by the Council of Economic Advisors.
- In fact, in 2021, government regulations at every level added an average of more than $90,000 to the final price of a new single-family home.
- Prolonged and complicated environmental review processes can delay housing projects by years, dissuading developers and curtailing the supply of new homes in communities that require them the most.
- Cities imposing arbitrary restrictions on housing construction create unnecessary obstacles to new residential development.
- President Trump acknowledges the need to empower homebuilders and recognizes that American families require immediate relief, which is why he is acting to dismantle regulatory barriers that hinder affordable home construction.
FULFILLING PROMISES TO AMERICAN FAMILIES:
President Trump is pursuing a proactive agenda to address the housing challenges facing American families, striving to make the dream of homeownership attainable once more.
- Earlier this year, he signed an Executive Order aimed at preventing large institutional investors from acquiring single-family homes that could otherwise be owned by families, while urging Congress to codify these initiatives.
- Additionally, he has directed Fannie Mae and Freddie Mac to acquire $200 billion in mortgage-backed securities to help drive down borrowing costs.
- These focused housing and affordability initiatives build upon President Trump’s previous actions designed to enhance Americans’ financial well-being:
- Overall deregulation efforts are anticipated to save Americans approximately $212 billion in 2025 — translating to roughly $2,500 per family of four.
- He also signed the Working Families Tax Cuts into law, delivering the largest tax reduction in American history and providing an annual income boost of over $10,000 for a typical family of four.
- His America First agenda, which emphasizes pro-growth, energy dominance, and deregulation, has effectively cut red tape, lowered inflation and mortgage rates, stimulated GDP growth, and attracted trillions in investments to the United States.
- President Trump remains focused on strategies to alleviate financial burdens on Americans resulting from the prevailing economic challenges, ensuring that families can thrive and realize the American Dream of homeownership.
