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Trio of Treasury Decisions Aimed at Boosting Nation’s Housing Supply

Wednesday, March 6, 2024 - 8:24AM

A U.S. Department of the Treasury blog entry posted Tuesday introduced a three-pronged approach to further increase the nation’s housing supply, including refreshed guidance for the American Rescue Plan’s (ARP’s) State and Local Fiscal Recovery Funds (SLFRF) and clarifications to ARP’s Emergency Rental Assistance (ERA) Program in addition to the recent extension of the Federal Financing Bank’s (FFB’s) support. The updated SLFRF guidance allows for the inclusion of housing developments that serve tenants earning up to 120% of the area median income (AMI), up from 65% of the AMI. On ERA, the announcement allows ERA2 program participants that have obligated at least 75% of their funds for financial assistance, housing stability services and administration costs to use the remaining funds for predevelopment and acquisition costs for affordable housing for very low-income households. Last week, the U.S. Department of Housing and Urban Development (HUD) indefinitely extended the financing support for FFB’s risk-sharing initiative with state and local housing finance agencies.

Learn more about boosting the nation’s housing supply at the Novogradac 2024 Affordable Housing Conference, May 2-3 in San Francisco.

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