The Biden administration, in announcements from a suite of federal agencies, signaled Wednesday that it is making a significant effort to address the lack of supply of affordable housing in America.
The announcements spanned three different federal agencies in addition to the government sponsored entities. The agencies will boost funding for existing programs geared toward producing, financing and rehabilitating affordable housing.
The efforts will produce 100,000 additional affordable homes for homeowners and renters over the next three years, the White House said, with an emphasis on the lower and middle segments of the market.
The Federal Housing Finance Agency announced that the government sponsored entities will increase the amount of low income housing tax credit investments from $500 million each to $825 million each. It will also increase the targeted rural portion of those investments from 40% to 50%.
”The severe shortage of affordable housing in America requires coordinated government action. As part of the federal government’s response, FHFA is instructing Fannie Mae and Freddie Mac to boost the housing supply in communities across the country by significantly increasing their Low-Income Housing Tax Credit investments and by expanding opportunities for local families to access affordable homeownership and rental housing,” said Sandra Thompson, acting director of the FHFA.
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