The administration announced a number of steps aimed at creating, preserving and selling to homeowners and non-profits nearly 100,000 additional affordable homes for homeowners and renters over the next three years, with an emphasis on the lower and middle segments of the market. Steps include expanding the equity cap for Fannie Mae’s and Freddie Mac’s Low-Income Housing Tax Credit program, the largest federal program for construction and rehabilitation of affordable rental housing; and increasing funding to HUD Community Development Finance Institutions and non-profit housing groups for affordable housing production under the Capital Magnet Fund. “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,” the White House said in a statement. “Higher housing costs also crowd out other investments families can and should make to improve their lives, such as investments in education.” MBA President and CEO Bob Broeksmit, CMB, released the following statement on the Administration’s announcement: “MBA strongly supports the administration’s efforts to increase the housing supply by encouraging the construction and rehabilitation of affordable apartments and homes for renters and first-time buyers.” Specific steps announced, include--
· Boost the supply of quality, affordable rental units by relaunching a partnership between the Department of Treasury’s Federal Financing Bank and HUD’s Risk Sharing Program to enable eligible state housing finance agencies to provide low-cost capital for affordable housing development.
· Raising Fannie Mae’s and Freddie Mac’s equity cap for Low-Income Housing Tax Credits to $850 million.
· Making more funding available to Community Development Finance Institutions and non-profit housing groups for affordable housing production under the Capital Magnet Fund.
· Boost the supply of manufactured housing and 2-4 unit properties by expanding financing through Freddie Mac and Fannie Mae.
· Make more single-family homes available to individuals, families and non-profit organizations by prioritizing homeownership and limiting the sale to large investors of certain FHA-insured and HUD-owned properties.
Work with state and local governments to boost housing supply by leveraging existing federal funds to spur local action, exploring federal levers to help states and local governments reduce exclusionary zoning, and launching learning and listening sessions with local leaders.