Treasury Announces New Funding and New Rule to Expand Affordable Housing

June 25, 2024
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This week, Treasury Secretary Janet Yellen announced new efforts to increase the supply of housing, including:

  • A new program administered by the Community Development Financial Institutions (CDFI) Fund that will provide an additional $100 million over the next three years to support the financing of housing that is affordable to low- and moderate-income households
  • An effort to provide greater interest rate predictability to state and local housing finance agencies borrowing from the Federal Financing Bank to support new housing development 
  • A call to action for the 11 Federal Home Loan Banks—government-sponsored enterprises that play an important role in the housing finance system—to increase their spending on housing programs and devote at least 20% of their net income to housing programs, with a particular focus on new construction
  • A new “how-to guide” to help state and local governments use State and Local Fiscal Recovery Funds to increase the supply of housing
  • An updated rule for the Capital Magnet Fund—the CDFI Fund’s existing affordable housing investment program—to provide greater flexibility to CDFIs and nonprofits that finance affordable housing

Read the full announcement.


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