Financial assistance from the federal government to likely expedite the process.
Affordable housing development is projected to “take off” over the next five year with federal government support, according to Jennifer Litwak, executive director at Housing on Merit, GlobeSt.com reports. Litwak will share more thoughts on the affordable housing topic at the GlobeSt.com Apartments conference on the Future Strategies for Affordable Housing panel later this month.
“My three-to-five year forecast is that there will be a rapid acceleration of affordable housing development,” Litwak told GlobeSt.com. “Since Housing on Merit has seed funded the Housing Innovation Collaborative, a non-profit housing production-focused (research and development) platform showcasing and piloting new design, finance, & policy solutions to address the housing affordability crisis, we hope it’s within the context of incorporating innovation into affordable housing development.”
How the federal government plays into the development
Litwak expressed her enthusiasm for the recently passed legislation that will dedicate $333 billion into housing and community development resources, GlobeSt.com reports. The legislation passed the U.S. House of Representatives Financial Services Committee in mid-September.
“The committee’s budget amendment includes $80 billion to build, preserve or retrofit more than 3 million affordable housing units, with $37 billion for the National Housing Trust Fund, $35 billion for the HOME program and $10 billion for the Capital Magnet Fund,” Litwak said.
Additionally, the bill comprises $90 billion in rental assistance to low-income renters, $75 billion for hundreds of thousands of Housing Choice vouchers with $25 billion of the funds dedicated to people who have either experienced or are at risk of experiencing homelessness, according to Litwak. Another $80 billion is meant to address the public housing backlog.
The legislation will also provide $8.5 billion for Community Development Block Grant (CDBG) funding, according to Litwak. This will include funding for manufactured housing communities. The bill also has $10 billion dedicated to providing first-time, first-generation homebuyers with down payment assistance.
Support for affordable housing has grown since the COVID-19 pandemic hit the United States, GlobeSt.com reports. The U.S. Department of Housing and Urban Development (HUD) published Notice CPD-21-10 in order to set requirements for the $5 billion provided under the American Rescue Plan Act through the HOME program, according to Litwak. The funds are meant for HOME participating jurisdictions to use to offer services and housing for households that are experiencing or could experience homelessness.
“HOME-ARP may be used to develop affordable housing, for tenant-based rental assistance (TBRA), to provide supportive services and for the acquisition and development of non-congregate shelter units,” she told GlobeSt.com. “The notice is effective immediately.”
Joe Dyton can be reached at email@example.com.