On Monday, U.S. Treasury Secretary Janet Yellen announced a new $100 million financing plan aimed at increasing the supply of affordable housing. This is one of the Biden administration's measures to address the issue of high housing costs ahead of the presidential election on November 5.
The Treasury's action is intended to tackle the longstanding issue of housing shortages, which has been a factor in inflation and has led to voter dissatisfaction with President Joe Biden's economic management.
Speaking at a public housing development project in Minneapolis, Yellen stated that the additional $100 million would be disbursed in phases over three years. The funds come from returns on Treasury investments in community lenders during the previous pandemic period, which supported small businesses, consumers, and affordable housing projects.
According to the Treasury Department, the 2021 Emergency Capital Investment Program injected over $8.57 billion into community lenders, who in turn invested $1.2 billion in 433 affordable housing projects.
Yellen noted that this additional funding, through a new project under the Community Development Financial Institutions (CDFI) Fund, could support the financing of thousands of affordable housing units.
