The White House released new housing affordability plans in response to the rise in home prices over the last year. Right now, millions of Americans are not able to afford homes and inventory is low. The Associated Press spoke with Freddie Mac. The mortgage firm estimates America has a deficit of more than 3.8 million homes.
One of the pillars of President Biden’s American Jobs Plan is to address the nation’s housing crisis. The new housing affordability plans released will help reach the mark. The plans also call for the restoration and construction of more than two million homes. Furthermore, the plans call for a series of policy shifts to increase home construction.
First, the new housing affordability plans calls for 100,000 affordable housing units to be built over three years through administrative changes. It will increase mortgage availability through Freddie Mac and Fannie Mae for manufactured houses and buildings with two to four units.
Second, government leaders will make it easier for owners as well as non-profits to buy properties that fail to sell in foreclosure auctions.
Third, government leaders plan to increase financing options for apartment buildings through tax credits, loans and grants.
HUD’s Role in New Housing Affordability Plans
Moreover, The U.S. Department of Housing and Urban Development also plays a key role in the new housing affordability plans.
HUD is the agency that will create, preserve, and sell more than 100,000 over the course of three years. The new housing affordability plans will also help reestablish the Federal Housing Association risk-sharing program with the Department of Treasury’s Federal Financing Bank.
Specifically, this program provides low-cost capital needed to spur development of rental housing in cooperation with state Housing Finance Agencies. Housing Finance Agencies can apply for mortgage insurance through this program through September 2024.