By KIMBERLEY HAAS
Leaders at Bank of America Community Development Banking have announced an up to $150 million investment to preserve more than 3,000 affordable homes for middle-income households.
In partnership with Enterprise Community Partners, a national nonprofit that offers solutions, capital, and community development, Bank of America will help workers earning between 80% and 120% of an area’s median income remain in housing they can afford.
According to Maria Barry, national executive for Bank of America Community Development Banking, as rent costs outpace income growth the lack of affordable housing inventory is forcing families to make difficult decisions on how and where they live.
“This fund will focus on the ‘missing middle,’ which refers to middle-income individuals who make too much money to qualify for subsidized housing but make too little to afford market-rate housing in their community,” Barry said in a statement.
The fund will allow affordable housing providers to acquire existing properties that are at risk of being converted into unaffordable, market-rate homes.
A press release cites Harvard University’s 2022 State of the Nation’s Housing report showing that from March 2021 to March 2022 rents jumped 12% and information from Pew Research Center, which indicates that 49% of Americans say the availability of affordable housing is a major problem where they live.
“Preserving affordable housing for middle-income households is more critical today than ever as our country faces the worst housing shortage in generations,” Lori Chatman, interim co-CEO of Enterprise Community Partners, said in a statement.
Will the average renter get some relief in 2023?
The message is mixed.
Shannon Pettypiece at NBC News reports that surging rental costs have been one of the biggest drivers of inflation over the past two years but a growing number of indicators suggest the red-hot rental market has started to cool.
Zachary Halaschak at Washington Examiner says rent prices are expected to stay flat or even falter as the threat of a recession looms.
Realtor.com economists predict that nationally rental prices will continue climbing in 2023, but they expect the days of double-digit hikes are likely over. Prices have already dropped in Las Vegas, New Orleans, Atlanta, Tampa, and Austin.
Officials at the U.S. Department of Housing and Urban Development have already taken steps to protect the most vulnerable renters.
Fair Market Rents for Fiscal Year 2023 were increased by 10%, according to a press release issued in September.
“HUD and the Biden-Harris Administration recognize the burdens of housing costs and are committed to expanding access to affordable housing through a wide range of necessary efforts, from boosting housing supply to providing more vouchers to help households with higher housing costs,” Secretary Marcia Fudge said in a statement.
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