As housing prices continue to skyrocket, state and local governments can now use some of the unspent $350 billion set aside for COVID-19 stimulus aid to construct affordable housing, according to The Washington Times.
What’s happening: Under new guidance released yesterday, the Treasury Department is allowing state and municipal governments to tap “funds from the $1.9 trillion American Rescue Plan, which President Biden signed in March 2021, to finance housing long-term loans for nonprofit developers.”
- The new rules, which were unveiled along with a “how-to guide” for governments, also expand the list of federal housing programs eligible to use the money to include public housing, elderly and disabled housing and low-income housing credits.
Why it matters: “Home prices hit an all-time high last month even with declining sales. The median home price ticked up to $416,000 in June, according to National Association of Realtors figures, up 13.6% over last year.”