U.S. GOVT Annouces Housing Supply Action Plan

WASHINGTON, May 16 2022 – The United States Government announced a Housing Supply Action Plan to ease the burden of housing costs over time by boosting the supply of quality housing in every community. The plan includes both legislative and administrative actions to help close the nation’s housing supply shortfall in five years. Among other provisions, the plan includes: test

• Financing over 800,000 affordable rental units by expanding and strengthening LIHTC through enactment of provisions included in the House-passed reconciliation bill. The bill would increase tax credit allocations, provide additional capacity for private activity bonds to finance affordable housing, target tax credits for housing that serves extremely low-income Americans, and make it easier to produce and preserve affordable housing with tax credits in Indian Country.
• Providing an additional subsidy through the LIHTC to developments that add net new supply and that would otherwise not be financially feasible. This proposal was included in the FY 2023 budget.
• Strengthening Government-Sponsored Enterprise (GSE) financing for multifamily development and rehabilitation.
• Leveraging American Recue Plan funds for investments in affordable housing.
• Finalizing the LIHTC Income Averaging proposed guidance by the end of September 2022.
• Advancing HOME as a key tool for the production and preservation of affordable rental and homeownership housing.
• Providing tax credits to build and rehabilitate homes for low- and moderate-income homebuyers. This proposed legislation, the Neighborhood Homes Investment Act (NHIA), is included in the House-passed reconciliation bill.
• Improving the alignment of federal funds to reduce transaction costs and duplications and accelerate development.
• Supporting the construction of more than 8,000 rural multifamily housing units.
• Supporting new and existing affordable housing in Indian Country.
• Providing incentives for land use and zoning reforms and reducing regulatory barriers.
• Addressing supply chain disruptions for building materials.