In support of the White House's recently released Housing Supply Action Plan , the Treasury Department released more guidance to make it easier for state, local, and tribal governments to use American Rescue Plan (ARP) funds to increase the supply of affordable housing and lower the long-term cost of housing.
Treasury has encouraged governments to dedicate a portion of the $350 billion in State and Local Fiscal Recovery Funds toward the development, repair, and operation of affordable housing. According to Treasury data, more than 600 state and local governments have budgeted $12.9 billion in Fiscal Recovery funds for housing needs and housing-related costs, including $4.2 billion for affordable housing development and preservation, through the end of March.
Earlier this year, Treasury issued a final rule for Fiscal Recovery funds to provide broad flexibility for their use. This new guidance takes two additional steps:
- Increasing flexibility to use Fiscal Recover funds to fully finance long-term affordable housing loans
- Expanding presumptively eligible affordable housing uses to further maximize the availability of Fiscal Recovery funds for affordable housing
Want more news like this? Subscribe to the USICH newsletter.