Thursday, January 1, 2009

Frank Proposes $10 Billion for Affordable Rental Housing

U.S. Representative Barney Frank is seeking $10 billion for the development of affordable rental housing across the nation. According to an article in The Boston Globe, Frank is proposing that the U.S. Treasury buy $5 billion in low-income housing tax credits, a primary funding source for affordable housing, and also provide another $5 billion to states for stalled projects.


wbc5 said...

Is there a press release or additional information about the plan? I presume this is different from his March 2008 proposal to help prop up municipal bond issuance, but a Google search doesn't yield anything from recent days.

I'm interested to see what 'holding credits' at the Treasury entails. If it keeps the compliance period at 10 years, then there's no hope that Treasury can reap any positive returns. If the 10 year period starts from date of sale to a third party, then the new investor will be left with a 10+ year old property at the end of the compliance period, requiring additional cap ex. It is also not clear how/if this encourages lending for these projects, but every effort helps in the short term.

National Housing Conference said...

At this time NHC does not currently have additional information to share on Congressman Frank’s exciting new proposal. However, NHC's “OpenHouse” is updated regularly and will reflect any progress made on this topic as soon as possible.