That feeling of accomplishment when you squeak out your first pull-up or learn to drive a motorcycle is exhilarating! Searching for your first home should result in the same sense of happiness. Lately, it seems as if the housing market has a vendetta against us, willing us to be unhappy as we search for an affordable house. Well, there’s good news on the housing-market horizon!
Recent action by the U.S. Department of Treasury (DOT) promotes funding to increase the supply of affordable housing and stabilize housing costs over time. State and local governments are encouraged to use the Coronavirus State and Local Fiscal Recovery Funds (SLFRF) from the American Rescue Plan to build and rehabilitate affordable homes. This funding translates into more opportunities to find affordable housing in your area.
- Meet today’s housing needs
- Lower housing-related costs for homebuyers
- Development and preservation of affordable housing
DOT guidance, released at the end of July 2022, goes beyond the points listed above and establishes the following:
- Reduce the negative economic impact of the pandemic
- More flexibility in finding fully financed, long-term affordable housing loans
- More flexibility in how SLFRF funds can be used toward eligible affordable housing
- More funding for those eligible for the Treasury’s Low Income Housing Credit (LIHTC)
Each state and local government has the option to use SLFRF funds in a variety of ways, possibly the following:
- Offering down payment assistance
- Fill funding gaps for new construction and affordable housing rehabilitation projects negatively affected by the pandemic
- Acquire housing to convert into affordable housing for those negatively impacted by the pandemic
As you can see, the DOT funding will provide a great variety of ways to supply affordable housing to communities using SLFRF funds. We look forward to seeing more affordable housing available to you and others across our nation.