There is $85 million for a new U.S. Department of Housing and Urban Development (HUD) "Yes in My Backyard" incentive program advocated by NMHC/NAA to help localities eliminate exclusionary policies, zoning and density restrictions, onerous parking requirements and other regulations.

The grant program will help fund efforts by local communities to update their zoning codes and community engagement to remove obstacles to affordable housing production and preservation, according to NMHC.

"The program is historic in that it's the first federal YIMBY policy that will be enacted into law and has the potential to increase desperately needed housing supply while improving housing affordability for millions of American families," according NMHC, a multifamily housing advocacy group.

Other than retirement provisions, no other tax-related provisions were included in the final bill.

"While that means some NMHC/NAA-sought provisions were not included, it also means the bill does not contain harmful revenue raisers long opposed by the industry, such as increasing ordinary income and capital gains tax rates, taxing carried interest as ordinary income and curtailing like-kind exchanges," NMHC said.

Section 8 Housing Choice Funding Increased

The bill reauthorizes $58.2 billion for HUD programs including multifamily lending programs, rental assistance programs and grant programs. Notably, it increases funding for Section 8 Housing Choice vouchers by $130 million, enough to support 12,000 new vouchers.

Other funding includes increases for the Community Development Block Grant and related economic and community development programs; funding for project-based rental assistance; an equal amount ($1.5 billion) for HOME, the same as in FY 2022; and an increase in homeless assistance grants, $420 million above FY 2022.