WASHINGTON (dpa-AFX) - U.S. Secretary of the Treasury Janet L. Yellen has announced additional $100 million over the next three years to support the financing of affordable housing in the country.
This was among a number of key housing initiatives by the Treasury that Yellen outlined in a speech in Minneapolis.
Yellen announced that the Treasury Department is trying to provide greater interest rate predictability to state and local housing finance agencies borrowing from the Federal Financing Bank to support new housing development. It is estimated that this will lead to thousands of additional housing units in the coming years.
Yellen called on the Federal Home Loan Banks to work to devote at least 20 percent of their net income to support housing programs and to prioritize new construction.
The Treasury chief also announced that the CDFI Fund is updating the rule for the Capital Magnet Fund, a critical Treasury housing program, to provide greater flexibility and reduce administrative burden on recipients.
Yellen said 'this update reflects input that we have received from many stakeholders who consider this program to be a crucial source of funding'. It will allow recipients to focus their resources on impact instead of dealing with red tape, according to her.
Yellen urged the Senate to pass the bipartisan tax bill that would expand the Low-Income Housing Tax Credit.
She urged more state and local governments to take additional action to address the housing shortage, and promised federal support to it.
The Treasury also released a blog post Monday underscoring that increasing the nation's housing supply is essential to addressing the long-term trend of rising housing costs.
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