Treasury Secretary Yellen Announces New Affordable Housing Efforts

U.S. Secretary of the Treasury Janet Yellen will announce new efforts by the Treasury Department to increase the supply of affordable housing.

Secretary Yellen visits Minneapolis today, where she will discuss new funding sources for housing production, according to a press release from the Treasury Department.

“We face a very significant housing supply shortfall that has been building for a long time,” she says in prepared remarks. “This supply crunch has led to an affordability crunch.”

Yellen outlined a new Treasury program administered by the CDFI Fund that will provide an additional $100 million over the next three years to support the financing of affordable housing. She also calls on the Federal Home Loan Banks to increase their spending on housing programs.

A new “How-To Guide” to support state and local governments in using recovery funds provided by Treasury to construct housing will be announced, plus an update to the Capital Magnet Fund to provide greater flexibility to CDFIs and non-profits that finance affordable housing.

Finally, the department will push to provide greater interest rate predictability to state and local housing finance agencies borrowing from the Federal Financing Bank to support new housing development.

Secretary Yellen will speak at the Family Housing Expansion Project, the largest new-unit project the Minneapolis Public Housing Authority has developed in more than twenty years.

She will urge Congress to pass legislation to expand the Low-Income Housing Tax Credit and additional state and local action to remove legal barriers to housing development.

In conjunction with the Secretary’s speech, the Treasury Department released a blog post outlining the history of the housing challenges Americans face today.

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