News Logo

Housing News

New Efforts To Increase Housing Supply Announced

Apart from the Biden-Harris administration’s Housing Supply Action Plan, the Treasury Department is making efforts to increase the housing supply.

March 6, 2024

The new efforts to increase the housing supply in the year ahead have been announced by the Treasury Department this week. The Treasury Department’s efforts include:

  • Updated guidance for the American Rescue Plan (ARPs) State and Local Fiscal Recovery Funds (SLFRF). This updated guidance will make things easy for the recipients. The recipients will be able to use the remaining funds to construct affordable housing.
  • Clarifications for the ARP’s Emergency Rental Assistance (ERA) Program to make it clear that the recipients who qualify can use the remaining funds for a variety of uses such as to provide funds for affordable housing meant for low-income families.

These efforts made by the Treasury Department are built on the Housing Supply Action Plan of the Biden-Harris administration to increase the supply of affordable housing along with decreasing housing costs via new actions announced last week.

The Housing Supply Action Plan of the Biden-Harris Administration includes:

  • For the first time at scale, the administration is considering rewarding the jurisdictions that have been successful in reforming zoning and land use policies.
  • Come up with new financing mechanisms to build and preserve housing especially where there are financial gaps.
  • The administration strives to expand and improve existing forms of federal financing available these days. This includes making available construction to permanent loans, encouraging the use of state or tribal funds, and announcing reforms to the low-income housing tax credit.
  • Work with the private sector to address the challenges in the supply chain and improve building techniques to finish the construction.

SLFRF Guidance

The governments have budgeted more than $7.1 Billion in SLFRF for long-term affordable housing including both rental and owner-occupied homes, a part of $18.5 Billion in SLFRF budgeted for housing overall as of September 30, 2023. With the help of these investments, there will be more than 20,000 units of affordable housing.

It will be presumed that the recipients funding an affordable housing project will have used the funds only for the eligible use if the project will house families who are earning 120% of the area’s median income or if the project meets one or more federal housing programs. The recipients are also allowed to fund projects supported by Fannie Mae and Freddie Mac meeting the needs of firefighters, teachers, and other workers out of certain markets.

ERA Guidance

The ERA program is the one that has created the eviction prevention systems and has prevented evictions of many. The qualified recipients that have obligated 75% of their funds for financial assistance, administrative costs, and housing stability services can use their funds for predevelopment and acquisition costs for affordable housing serving low-income families along with other eligible uses such as preservation of affordable housing, rehabilitation or construction.

FEB-HUD Risk Sharing Initiative

Besides the ones mentioned above, the Treasury Department is extending the FFB’s financing support for a risk-sharing initiative between HUD, and state and local housing agencies. This extension of the FFB’s financing support will lower the cost of capital for certain low-risk housing developments. As per the estimate done by the Treasury Department, tens of thousands of additional affordable homes will be created or preserved by the next decade.

Article Sources

Arrow Down Sign

The content provided in this article draws inspiration and includes quotes from various reputable sources, including news articles, government data, and interviews. Affordable Housing 411 strives to ensure accuracy and credibility, but the information presented may be based on some external sources. We encourage readers to refer to the referenced materials for more in-depth insights and verification.

United States Interagency Council on Homelessness. “Treasury Announces New Efforts to Increase Housing Supply”. United States Interagency Council on Homelessness, March 6, 2024,
Treasury Announces New Efforts to Increase Housing Supply | United States Interagency Council on Homelessness (usich.gov)

Last Updated: September 20, 2021