The National Association of Hispanic Real Estate Professionals (NAHREP) announced it supports President Joe Biden’s Housing Supply Action Plan. The plan addresses the ongoing housing supply shortage and sets a national strategy to close the housing supply gap in five years.

“Latinos are central to the long-term strength of the housing market,” NAHREP co-founder and CEO Gary Acosta said in a release. “Record low housing supply remains the number one barrier to Latino homeownership growth. Housing represents over 16 percent of the U.S. GDP. A meaningful and targeted national effort to spur the production of new entry-level housing will be critical to ensuring future U.S. economic growth and will help temper the unsustainable rise in home prices.”

NAHREP’s latest State of Hispanic Homeownership Report found there are 8.3 million Latinos aged 45 and under who are currently mortgage-ready but don’t own a home. At the same time, a NAHREP survey of real estate practitioners found most homes are still receiving multiple offers, making it difficult for first-time homebuyers utilizing low down payment loan products to compete. Failure to act on today’s housing shortages could price an entire generation out of homeownership.

According to the White House statement, the Housing Supply Action Plan seeks to:

Reward jurisdictions that have reformed zoning and land-use policies with higher scores in certain federal grant processes, for the first time at scale.

Deploy new financing mechanisms to build and preserve more housing where financing gaps currently exist manufactured housing (including chattel loans that the majority of manufactured housing purchasers rely on), accessory dwelling units, two-four-unit properties and smaller multifamily buildings.

Expand and improve existing forms of federal financing, including affordable multifamily development and preservation. This includes making Construction to Permanent loans (where one loan finances the construction but is also a long-term mortgage) more widely available by exploring the feasibility of Fannie Mae to purchase these loans; promoting the use of state, local, and tribal government COVID-19 recovery funds to expand affordable housing supply; and announcing reforms to the Low Income Housing Tax Credit, which provides credits to private investors developing affordable rental housing, and the HOME Investment Partnerships Program, which provides grants to states and localities that communities use to fund a wide range of housing activities.

Ensure more government-owned supply of homes and other housing goes to owners who will live in them – or non-profits who will rehab them – not large institutional investors.

Work with the private sector to address supply chain challenges and improve building techniques to finish construction in 2022 on the newest homes in any year since 2006.

“The Housing Supply Action Plan contains ambitious initiatives that can materially impact the housing inventory crisis in America if enacted,” Acosta said. “Increasing the housing supply will create a multiplier effect for the economy and positively impact inflationary pressures, especially for Latinos, who are projected to make up 70 percent of new homeowners over the next 20 years. The key will be in the ability to execute on the ambitious plan set forth by the administration. NAHREP and our members look forward to working closely with the administration to help make it a reality.”