Federal agencies take 7 steps to improve affordable housing supply and reduce homelessness
- Increasing the funding of low-income housing tax credit investments through Fannie Mae and Freddie Mac to $852 million each annually.
- Sharing specific details about the HOME-American Rescue Plan so more than 600 eligible communities can start accessing funds designed to address local homelessness.
- Providing communities with five percent of their HOME-ARP grants upfront to support planning activities for local affordable housing projects.
- Restarting the Federal Housing Administration (FHA) Section 542(c) Housing Finance Agency Risk-Sharing Program with the Department of Treasury’s Federal Financing Bank. The program gives state housing finance agencies access to low-cost capital that aids in the building and development of affordable housing units where they are needed.
- Removing the dollar cap from the Section 542(c) program so the FHA can provide firm approval letters for HFA-underwritten mortgages that meet program standards.
- Making more single-family homes available to individuals, families and non-profit organizations by limiting the sale of FHA-insured and HUD-owned properties to large investors.
- Sharing HUD research on innovative strategies state and local governments use to remove regulatory barriers to affordable housing and increase housing supply.