Janet Yellen Announces $100 Million Initiative to Boost Affordable Housing Supply
U.S. Treasury Allocates $100 Million Over Three Years to Address Housing Shortage
WASHINGTON – U.S. Treasury Secretary Janet Yellen announced on Monday an additional $100 million in financing over the next three years to boost the supply of affordable housing, according to the published article of staradvertiser.com. This initiative comes as the Biden administration seeks to tackle high housing costs ahead of the November 5 presidential election. This move is part of a broader effort by the Treasury to address the chronic housing shortage which has contributed to persistent inflation and voter dissatisfaction with President Joe Biden’s economic policies. The $100 million funding will be derived from payments the Treasury receives from previous COVID-era investments in community lenders. These funds supported small businesses, consumers and affordable housing projects.
The 2021 Emergency Capital Investment Program alone injected over $8.57 billion into community lenders which subsequently invested $1.2 billion in 433 affordable housing projects. The new funding aims to finance thousands more affordable housing units through a program within the Community Development Financial Institutions (CDFI) Fund. Secretary Yellen emphasized the severe housing supply shortfall which has caused housing costs to rise faster than incomes in most U.S. counties. This affordability crisis has disproportionately affected low-income and Black households. Christopher Tyson president of the National Community Stabilization Trust supported the new funding as a step towards bridging the gap between affordable housing and market prices noting a national shortage of about 2 million housing units. Additionally, Yellen is urging the 11 Federal Home Loan Banks to increase their contributions to housing programs which could have significantly boosted funding over the past five years.
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Yellen Unveils $100 Million Plan to Enhance Affordable Housing Amid Shortage Crisis
Furthermore, Secretary Yellen emphasized the severe housing supply shortfall which has caused housing costs to rise faster than incomes in most U.S. counties. This affordability crisis has disproportionately affected low-income and Black households. Christopher Tyson president of the National Community Stabilization Trust supported the new funding as a step towards bridging the gap between affordable housing and market prices noting a national shortage of about 2 million housing units. Additionally, Yellen is urging the 11 Federal Home Loan Banks to increase their contributions to housing programs which could have significantly boosted funding over the past five years.