Housing supply

Biden seeks to boost housing supply in the absence of congressional action

The Department of Housing and Urban Development will also encourage state and local recipients to use money from more flexible programs, including Community Development Block Grants, to create more affordable housing.

The administration said the Treasury Department will encourage state and local governments to direct pandemic relief funds provided by Congress in 2021 toward affordable housing. So far, about 570 jurisdictions have committed $11.7 billion of those funds to housing activities, the administration said.

The White House will also encourage the construction of affordable housing by lowering barriers to financing. This includes streamlining procedures and requirements across federal programs, including low-income housing tax credits, HUD programs and the Housing Trust Fund, and exploring additional federal support for financing manufactured homes.

The administration called on Congress to take action to boost housing supply, including providing the $150 billion in housing funds included in the frozen social safety net and climate spending package. The White House also listed smaller actions Congress could take, which could give some idea of ​​what housing provisions might look like in a reduced climate and social spending package.

The administration has asked Congress to create a Housing Supply Fund to distribute $25 billion in grants to state and local housing agencies working to boost the supply of affordable housing. Congress should also expand low-income housing tax credits to spur the development of affordable, owner-occupied housing, the White House said.