Treasury announces new funding and rule to expand affordable housing

This week, Treasury Secretary Janet Yellen announced new efforts to increase housing supply, including:

A new program administered by the Community Development Financial Institutions (CDFI) Fund that will provide an additional $100 million over the next three years to support financing for affordable housing for low- and moderate-income households.
An effort to provide greater interest rate predictability to state and local housing finance agencies that borrow from the Federal Financing Bank to support new housing development.
A call to action for the 11 Federal Home Loan Banks – government-sponsored enterprises that play an important role in the housing finance system – to increase their spending on housing programs and devote at least 20% of their net income to housing programs, with a particular emphasis on new construction
A new “how-to guide” to help state and local governments use state and local fiscal stimulus funds to increase housing supply.
An updated rule for the Capital Magnet Fund – the CDFI Fund’s existing affordable housing investment program – to provide greater flexibility for CDFIs and nonprofit organizations that finance affordable housing.

Read the full announcement.