On Monday, May 4, the U.S. Department of Treasury and U.S. Department of Housing & Urban Development published a press release announcing programs that will provide billions of dollars in recovery funds to spur the development of affordable housing. The programs will provide approximately $5 billion for states to finance the acquisition and construction of affordable housing.
The press release noted that as the economy has declined investor interest in Housing Credit properties has dropped off leading to numerous affordable housing projects to stall. These programs are designed to allow those projects to continue development and provide affordable housing for those populations most in need.