The Treasury Department on Wednesday released new guidance allowing state and local governments to tap into $350 billion in COVID-19 stimulus aid to build affordable housing as home prices skyrocket nationwide.
Under the new rules, state and local governments can use funds from the $1.9 trillion American Rescue Plan, which President Biden signed in March 2021, to finance housing long-term loans for nonprofit developers.
The guidance also expands federal housing programs eligible to draw on the reserve to include low-income housing credits, affordable housing preservation, elderly and disabled housing, and public housing.
“Increasing the nation’s housing supply is essential to lowering shelter costs over the long-term,” said Deputy Treasury Secretary Wally Adeyemo.