The U.S. Department of Housing and Urban Development (HUD) and the Federal Housing Finance Agency (FHFA) have announced numerous steps they’re taking with other government agencies to create, preserve and sell 100,000 affordable homes for lower income renters and buyers during the next three years.
In Illinois, about $200 million was allocated in supplemental funding for the HOME Investment Partnerships Program, according to HUD.
Those steps include:
- Increasing the funding of low-income housing tax credit investments through Fannie Mae and Freddie Mac to $852 million each.
- Sharing specific details about the HOME-American Rescue Plan so more than 600 eligible communities can start accessing funds designed to address local homelessness.
- Providing communities with five percent of their HOME-ARP grants upfront to support planning activities for local affordable housing projects.
- Restarting the Federal Housing Administration (FHA) Section 542(c) Housing Finance Agency Risk-Sharing Program with the Department of Treasury’s Federal Financing Bank. The program gives state housing finance agencies access to low-cost capital that aids in the building and development of affordable housing units where they are needed.
- Removing the dollar cap from the Section 542(c) program so the FHA can provide firm approval letters for HFA-underwritten mortgages that meet program standards.
- Making more single-family homes available to individuals, families and non-profit organizations by limiting the sale of FHA-insured and HUD-owned properties to large investors.
- Sharing HUD research on innovative strategies state and local governments use to remove regulatory barriers to affordable housing and increase housing supply.
For more information, visit websites for HUD, FHFA, Fannie Mae and Freddie Mac.
