Some details about upcoming government spending has promised to help alleviate the affordable housing crisis that has only gotten worse during the pandemic.
The Biden administration announced last week that The American Jobs Plan includes $318 Billion for the construction of up to 2 million affordable housing units. The announcement was praised by Housing Secretary Marcia L. Fudge (pictured, above) who has been repeating the slogan “Housing is infrastructure.”
This funding aims to “kill two birds with one stone” as it will also generate a thousands of jobs for the construction of the units.
The majority of the funds ($213 billion) will be spent on a variety of programs at the U.S. Department of Housing and Urban Development. This includes $45 billion toward the National Housing Trust Fund, which helps households whose income is below 30% of the median income.
The other large chunk ($105 billion) of the funding will be tax credits to incentivize property developers to create affordable housing.
Housing Secretary Marcia L. Fudge explained the details in her presentation in Kansas City last week. For more details on the bill and its components, see the article written about it on Bloomberg.com.