Treasury Department Issues Guidance to Increase Affordable Housing Supply
The Treasury Department issued new guidance Wednesday to increase state, local and tribal governments’ ability to use American Rescue Plan funds to increase affordable housing. The Mortgage Bankers Association commended the Biden administration for its commitment to addressing the ongoing housing shortage.
“Increasing the nation’s housing supply is essential to lowering shelter costs over the long-term,” said Deputy Treasury Secretary Wally Adeyemo. “Treasury continues to strongly encourage state and local governments to dedicate a portion of the historic funding available through President Biden’s American Rescue Plan toward building and rehabilitating affordable housing in their communities and the actions being announced today will make it even easier for them to do so.”
The Treasury Department noted this step follows a commitment in the Administration’s recently released Housing Supply Action Plan to leverage American Rescue Plan funds for investments in affordable housing as part of a broader strategy to increase the nation’s housing supply and ease housing costs over time.
“With housing construction slowing amidst inflationary pressures, economic uncertainty and higher interest rates, both public and private sector financing will be necessary to create the supply of affordable rental housing that is needed to help ease costs for families, especially minorities and those with low and moderate incomes,” said MBA President and CEO Bob Broeksmit, CMB. “We will examine Treasury’s guidance in greater detail and look forward to our ongoing work with the administration, Congress and industry stakeholders on safe and responsible policies that increase single-family and multifamily housing for homebuyers and renters.”