It moves to include raising regulatory caps and expanding grant programs
TRD
New York
With housing in short supply and affordable housing hard to find, the Biden administration aims to make technical changes to make it easier to build and finance rental homes and properties.
The potential moves could be announced by the White House as early as Wednesday, according to the Wall Street Journal. One change: Fannie Mae and Freddie Mac could invest more in rentals thanks to an increase in a regulatory cap on apartments backed by the Low Income Housing Tax Credit.
Another change would expand the competitive grant program for community development finance institutions, which could increase the production of affordable housing. More financing would also be made available for factory-built homes, which generally cost less to construct.
A third proposal would also allow philanthropic organizations and first-time homebuyers to purchase FHA-insured distressed properties, aiming to give them an advantage over investors who often buy the properties first.
Prices for buyers and renters have skyrocketed during the pandemic, leaving many first-time buyers stranded. The National Association of Realtors said the median price of an existing home in July was $359,900, less than $3,000 below the record high set in June.
Building affordable housing can be difficult, but jurisdictions across the country are working to make it easier. In California, lawmakers have given initial approval to a bill that would allow two-unit buildings on lots previously limited to single-family homes, in order to increase the supply of affordable housing.
