White House Releases Fact Sheet on Increasing Affordable Housing
On September 1, the White House released a Fact Sheet on the Biden Administration’s efforts to increase the affordable housing supply by creating, preserving, and selling nearly 100,000 additional affordable homes to homeowners and non-profits. The Administration is working with federal agencies to boost the supply of quality, affordable rental units, boost the supply of manufactured housing and 2-4 unit properties, make more single-family homes available to individuals, families, and non-profit organizations, and work with state and local governments to boost housing supply.
In order to boost the supply of quality, affordable rental units, the Administration plans to relaunch the Federal Financing Bank and HUD Risk Sharing Program, increase Fannie Mae and Freddie Mac’s Low-Income Housing Tax Credit Investment cap by $700 million, and strongly encourage the development of affordable housing under the next Capital Magnet Fund NOFA.
The Administration will also make financing allow Fannie Mae to accept loan delivery for manufactured housing and revise certain mortgage eligibility requirements for 2-4 unit properties.
The Administration will work to make more single-family homes available to individuals, families, and non-profit organizations – rather than large investors. The Administration will do this by prioritizing homeownership in the sale of FHA-insured properties by providing guidelines over the next year that include an exclusive listing period for governmental entities, non-profits, and owner occupant buyers for Second Chance sales. The Administration will also promote the sale of distressed HUD properties to non-profits by increasing the amount of FHA-insured mortgage notes offered to non-profit and community organizations. HUD and Fannie Mae and Freddie Mac will also expand the exclusivity period for Real Estate Owned (REO) sales, and will improve outreach to non-profits for REO sales.
Lastly, the Administration will work with state and local governments to boost housing supply by leveraging federal funding to spur state and local action, and exploring federal levers to partner with states and local governments to reduce exclusionary zoning.
The fact sheet can be found here.