Biden Administration Tackling Affordable Housing Supply Shortages

The Biden Administration recently announced cross-agency efforts to address the continuing affordable housing shortage.

“While Congress works toward passing the Build Back Better Agenda, which includes an historic investment in building new homes and making existing housing safer, healthier, and more energy efficient, the President knows that we can’t wait to take action,” reads a statement from the White House. “The large and long-standing gap between the supply and demand of affordable homes for both renters and homeowners makes it harder for families to buy their first home and drives up the cost of rent. Higher housing costs also crowd out other investments families can and should make to improve their lives, such as investments in education.”

“President Biden promised the American people that his Administration would dramatically expand our nation’s supply of affordable rental housing—and the actions announced today represent a significant down payment toward that commitment,” said HUD Secretary Marcia L. Fudge in a statement. “These actions will expand access to critical capital for state Housing Finance Agencies, empower local communities to build more affordable housing using the historic investments contained in the American Rescue Plan, and advance equitable housing policies such as inclusionary zoning practices. Moving forward, HUD and the Biden-Harris Administration will continue to pursue bold actions to create and preserve affordable homes for all Americans.”

The Administration will be taking the following steps to “create, preserve and sell to homeowners and nonprofits nearly 100,000 additional affordable homes for homeowners and renters over the next three years.”

– Relaunching partnerships between the Department of Treasury’s Federal Financing Bank and the Department of Urban Development (HUD) in order to increase the supply of quality, affordable rental units.

– Expanding financing through Freddie Mac in order to increase the supply of manufactured housing and two- to four-unit properties.

– Limiting sale to large investors of certain FHA-insured and HUD-owned properties in order to prioritize availability of single-family homes for individuals, families and nonprofits.

– Leveraging existing federal funds to help reduce exclusionary zoning and launch educational sessions with local leaders.

– Making funding for affordable housing available under the Capital Magnet Fund, a competitive grant program for nonprofit housing groups and Community Development Financial Institutions.

Learn more about the steps being taken here.

“The severe shortage of affordable housing in America requires coordinated government action,” said Federal Housing Finance Agency (FHFA) Acting Director Sandra L. Thompson in a statement. “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. In addition, FHFA will begin to study the interaction between exclusionary zoning and our regulated entities.”

Liz Dominguez is RISMedia’s senior online editor at RISMedia. Email her your real estate news ideas to lizd@rismedia.com.