Priya Patel
TLDR:
- HUD and Treasury are extending the Section 542(c) Housing Finance Agency Risk-Sharing Initiative
- The extension will create or rehabilitate over 38,000 rental homes for low-income families, seniors, and persons with disabilities
Today, the U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of the Treasury announced the indefinite extension of the Section 542(c) Housing Finance Agency Risk-Sharing Initiative. This initiative, offered through HUD’s Federal Housing Administration and Treasury’s Federal Financing Bank, provides cost-effective capital for state and local housing finance agencies to create and preserve affordable rental homes. Since its re-start in 2021, the program has already enabled access to nearly $2 billion in financing for the development or substantial rehabilitation of almost 12,000 affordable rental homes, with a projection of 38,000 additional homes over the next decade.
Housing affordability continues to be a pressing issue, and this extension of the Risk Sharing Initiative is a vital step in addressing the imbalance between supply and demand. HUD Deputy Secretary Adrianne Todman emphasized the importance of providing affordable housing options to those in need, while Deputy Secretary of the Treasury Wally Adeyemo highlighted the role this initiative plays in expanding access to affordable housing nationwide. The Risk Sharing Initiative allows eligible housing finance agencies to receive credit enhancement through FHA mortgage insurance and have the Federal Financing Bank purchase the FHA-insured mortgages, ensuring the availability of capital to build and preserve affordable rental units.
This partnership between HUD and the Treasury is a crucial aspect of President Biden’s Investing in America agenda, aiming to improve housing stability and increase access to affordable housing options across the country. By continuing to support the development and rehabilitation of affordable rental homes, this initiative stands to positively impact low-income families, seniors, and persons with disabilities, ultimately contributing to the creation of more inclusive and sustainable communities nationwide.
For more information about HUD and its programs, visit www.hud.gov
