Biden Announces Plan to Increase Affordable Housing Supply
WASHINGTON DC – Today, the White House released its plan to increase the affordable housing supply in the US. The administration is aiming to stabilize families that are at risk of losing their homes, due to the economic impact of the pandemic.
Congress is currently working toward passing the Build Back Better Agenda, which includes an investment in building new homes and making existing housing safer, healthier and more energy efficient. In addition to the Build Back Better Agenda, President Biden has announced immediate steps to increase affordable housing supply and to make supply available to families in need of affordable, quality housing.
The plan aims to create, preserve and sell nearly 100,000 additional affordable homes to homeowners and non-profits over the next three years.
The plan calls for federal agencies to boost the supply of quality, affordable rental units by relaunching a partnership between the Department of Treasury’s Federal Financing Bank and the Department of HUD Risk Sharing Program. The plan additionally calls for federal agencies to boost the supply of manufactured housing and 2-4-unit properties by expanding financing through Freddie Mac.
The White House plans to make more single-family homes available to individuals, families and non-profit organizations, rather than large investors. In order to do so, the government will prioritize homeownership and limit sales to large investors of certain FHA-insured and HUD-owned properties. Lastly, the plans calls for federal agencies to work with state and local governments to boost housing supply by leveraging existing federal funds.
In regards to the plan, CohnReznick’s affordable housing industry leader, Beth Mullen states, “It’s gratifying to see that the administration is focused on the need for more affordable home ownership and rental housing and committed to using the full range of options available to the government to achieve those goals. In the LIHTC area additional investment by Fannie Mae and Freddie Mac with the duty to serve rural and underserved communities is a valuable component of the overall investment market.”
Regarding the announcement, Mortgage Bankers Association president and CEO Bob Broeksmit states, “MBA strongly supports the administration’s efforts to increase the housing supply by encouraging the construction and rehabilitation of affordable apartments and homes for renters and first-time buyers.”
Broeksmit adds, “The lack of supply is a huge problem, and HUD and FHFA should do what they can administratively while Congress considers more significant initiatives. MBA looks forward to continuing to work with the administration, Congress, and all other stakeholders on ways to address supply constraints and ensure government programs appropriately complement private capital to help both renters and homeowners.”