The U.S. Treasury Department has announced guidance intended to increase state, local and tribal governments’ use of American Rescue Plan Act funds that will let more multifamily developers increase production via Low-Income Housing Tax Credits.
Under the Treasury plan, state housing agencies can use State and Local Fiscal Recovery Funds to finance LIHTC Projects. The change will enable significant new financing for affordable housing.
Treasury is also updating guidance to make it clear SLFRF funds can be used to fund development, repair or operation for affordable rental housing with affordable designations 20-years or more for households earning 65% or less of the local median income.
Treasury and the Department of Housing and Urban Development have jointly issued a guide detailing how governments can combine ARPA funds and other federal funding sources.
Treasury will host a series of webinars and briefings with governments and private sector users on affordable housing in coming months. The Department has also updated its FAQs to include new affordable housing guidance. (Source)