Federal Low-Rental Housing Grant Doubles This Year, Real Estate News, AND RealEstate
It’s a boost that the Department of Housing and Urban Development says should produce a tangible leap forward in government low-rental housing plans across the country.
The Housing Trust Fund, administered by the ministry, will provide money to state governments for the construction, maintenance and restoration of social housing. This year’s allocation is $ 689,565,492 – more than double the $ 322,564,267 disbursed the previous year, HUD said in a statement.
The increase in the grant is independent of the president Joe bidenis massive COVID-19[female[feminine relief package and its equally massive infrastructure proposal. But it fits the general tone of Biden’s young presidency, which is responding to the pandemic by disbursing money across the country in a way that could potentially reshape the social safety net.
“This past year has reminded us of how important it is to have access to safe and stable housing. But too many Americans are struggling to keep or find affordable housing,” HUD Secretary Marcia said. Fudge, in a statement.
Established in 2008, the Housing Trust Fund began making payments to state governments in 2016 and is funded by a portion of proceeds from parallel federal mortgage programs, Fannie Mae and Freddie Mac. A senior HUD official said the original idea was to tie a strong performance in one part of the housing market with increased support for people in vulnerable housing situations.
Interest rates fell to long-standing lows last year, sparking a wave of pandemic mortgage refinancing.
The grants go directly to state governments. Each state must use 80% of each annual subsidy for rental housing, up to 10% for homeownership, and the remainder for administrative and planning costs. The fund can be used for the acquisition, new construction, reconstruction or rehabilitation of properties.
The senior HUD official, who spoke on condition of anonymity before the program was officially announced, said many state-owned real estate agencies had followed the surge in mortgage activity and were already preparing for an increase in funding before. that the actual figures are not announced.
The overall impact, the official said, will be allowing public housing authorities to expand existing plans or advance projects that were pending funding.
Diane Yentel, chair of the National Low Income Housing Coalition, said the economic upheaval caused by the pandemic had highlighted the number of Americans missing a few paychecks from a personal housing crisis.
“The pandemic has made it clear that housing is about health care,” she said. “These are essential resources for building and maintaining housing for our most vulnerable people.”
Yentel said the Housing Trust Fund got off to a good start in its early years of operation. But she and other housing advocates are pushing for a massive expansion of the program, pressuring Congress to put up to $ 40 billion a year into the fund.