Treasury, HUD to Stimulate Low-Income Housing Construction

The Treasury Department and HUD are providing up to $5 billion in cash assistance and grants to state finance agencies to finance the construction and renovation of 150,000 low-income housing units. Congress allocated the funds in the economy stimulus bill to jumpstart housing projects that where shelved or abandoned after the market for low-income housing tax credits dried up. The Department of Housing and Urban Development is providing grants through the Tax Credit Assistance program to complete the construction of 35,000 low-income housing units. Treasury is providing the cash or equity for affordable housing projects that developers previously raised through the sale of LIHTCs to investors. HUD also is soliciting applications from state/local governments and nonprofit housing groups for $2 billion in funds to acquire and rehabilitate foreclose properties. HUD wants to see collaborations between government units and nonprofits to help stabilize neighborhoods and prevent blight.