State and Local Fiscal Recovery Funds (SLFRFs) provided under the American Rescue Plan Act (ARPA) are helping to expand the nation’s affordable housing supply, according to Treasury Department officials.
Through September 2022, SLFRF recipients have reported budgeting $14.2 billion on nearly 1,800 housing affordability-related projects, including efforts to provide short-term assistance and develop new, permanent supply, said the department today.
That reflects a 15% increase in the number of projects since the previous reporting period in July, which captured budgeting before Treasury’s updated guidance.
The recent update comes after the Treasury boosted the ability to use SLFRF funds for affordable housing last July. Among its moves, the department allowed states and localities to use recovery funds to make long-term loans to affordable housing developments.
The Treasury pointed to three counties investing in affordable housing:
· Greenville County, South Carolina, allocated $10 million for the production of multifamily and single-family affordable housing units, preservation of current affordable housing units, and a signature project in a qualified census track that would include new infrastructure as well as new multifamily units;
· Snohomish County, Washington, allocated more than $9 million for the identification, planning, and purchase of a multi-unit noncongregate shelter building that will include services for individuals experiencing homelessness as well as a flexible space for emergency response; and
· Tarrant County, Texas, has put nearly $34 million into expanding permanent supportive housing as the COVID-19 pandemic highlighted the need for additional housing to serve its most vulnerable populations. The project includes grant awards to nonprofits that focus on housing and was facilitated through an application process run by the Tarrant County Housing Finance Corp.
While touting ARPA’s role in the nation’s recovery from the COVID-19 pandemic, Treasury secretary Janet Yellen said more needs to be done.
“Our administration is working with many of you to implement a Housing Supply Action Plan, which includes calling on Congress to take additional actions,” Yellen said in prepared marks to the National Association of Counties Legislative Conference. “The goal is to close the housing supply shortfall by 2027.”
As of last year, governments have budgeted over $14 billion of SLFRFs for over 1,800 projects focused on housing. And this is just the beginning, Yellen said.
In her remarks, Yellen was also prepared to say that Congress must vote to raise or suspend the debt limit. Defaulting on the debt would produce a financial catastrophe, which could lead to residents losing their jobs and household payments on mortgages, auto loans, and credits rising, she said.
