The U.S. Department of the Treasury announced last week that $284 million in American Recovery and Reinvestment Act (Recovery Act) funding will go toward the development of affordable housing in California. To date, 45 state housing authorities have been awarded a total of $3.1 billion in payments in lieu of tax credits for affordable housing projects.
‘This innovative Recovery Act program allows the federal government to partner with states to support local developers and helps ensure that housing developers can access the financing necessary to build affordable housing,’ says Treasury Deputy Secretary Neal Wolin. ‘We have worked quickly to make available more than $3 billion to state housing agencies, and we expect to see continued efforts at the state level so that these funds can be delivered to the communities that need it most.’
In May, the Treasury Department launched a program to provide payments in lieu of tax credits to state housing agencies to jump-start the development or renovation of qualified affordable housing for families across the country.
Upon receiving notice of these allocations, state housing agencies manage a competitive process to disburse funds to qualified developers. This is an ongoing program open to additional state applications through 2010.
SOURCE: Treasury Department