2 Million Housing Shortage Targeted: Treasury Secretary Yellen’s $100 Million Initiative

Treasury Secretary Janet Yellen announced a $100 million initiative to boost affordable housing.

Janet Yellen Announces $100 Million Initiative to Boost Affordable Housing Ahead of Election

Treasury Secretary Janet Yellen announced a $100 million initiative to boost affordable housing responding to concerns about housing costs ahead of the presidential election. The funding derived from prior COVID-era investments in community lenders aims to support thousands of new affordable housing units over three years through the Community Development Financial Institutions Fund.

Since its inception, the 2021 Emergency Capital Investment Program has directed over $8.57 billion to community lenders resulting in investments in 433 affordable housing projects nationwide. Yellen highlighted the $100 million addition as a crucial step in addressing the persistent housing shortage which has contributed to inflation and public dissatisfaction with economic policies.

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(photo: Yahoo Finance)

Christopher Tyson Applauds Treasury’s Housing Initiative

Christopher Tyson of the National Community Stabilization Trust praised the Treasury’s move as significant progress in closing the gap between housing costs and affordability. He emphasized that market distortions caused by inadequate housing supply have made homeownership unattainable for many estimating a shortage of around 2 million housing units nationwide.

Yellen also urged the 11 Federal Home Loan Banks to increase their contributions to housing programs proposing that they allocate at least 20% of their net income, up from the current 10% requirement and 15% commitment. This adjustment could have resulted in nearly $2 billion more in contributions to housing programs over the past five years according to Star Adviser.

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