NCSHA Statement on Administration’s Announcement of Immediate Steps to Increase Affordable Housing Supply

WASHINGTON, DC — The National Council of State Housing Agencies commends the Biden–Harris Administration for announcing today several steps to expand the supply of affordable housing, including the resumption of the highly successful partnership between the Treasury Department’s Federal Financing Bank and the Department of Housing and Urban Development Risk-Sharing Program that delivers low-cost financing through state housing finance agencies and an expansion of Fannie Mae and Freddie Mac’s capacity to invest in Low Income Housing Tax Credits, which are allocated by the states.

“These announcements make clear that the Biden–Harris Administration means business when it comes to getting more affordable housing built and recognizes the central role state HFAs play in connecting capital to developers and home builders to make it happen,” said NCSHA Executive Director Stockton Williams.

The Treasury/HUD/HFA risk-sharing partnership financed more than 25,000 units of affordable rental apartments that otherwise wouldn’t have been built or preserved, while reducing risk and generating revenue for the federal government, over several years before being terminated by the prior administration. Restarting the program will enable state HFAs to serve smaller developments, rural areas, and other essential projects that conventional financing does not.

The Low Income Housing Tax Credit has brought to bear private-sector resources and state-level administration to provide eight million low-income families, seniors, veterans, and people with disabilities homes they can afford. As NCSHA and many other organizations work to expand the Housing Credit to meet massive housing needs nationwide in the reconciliation bill Congress is considering, increasing Fannie and Freddie’s investment will further strengthen this critical program.