Finance Globe

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Treasury Releases $268 Million of Recovery Act Funds for Low-Income Housing

The Treasury Department announced on Monday that $268 million in American Recovery and Reinvestment Act funds will be released to create jobs and provide low-income families with affordable housing units in Indiana, Missouri, Tennessee, and Washington D.C.

"Today's announcement of housing funds demonstrates how President Obama's Recovery Act is putting our nation on the path to economic stability, one community at a time," said Treasury Deputy Secretary Neal Wolin. "This initiative will help spur construction and development, create much needed jobs, and increase the availability of affordable housing for families around the country."

The Treasury reported that housing starts have fallen 80% since their peak level at the beginning of 2006 and that houses currently under construction are at a 13-year low, down more than 60% from the peak in the first quarter of 2006.

The residential building and specialty trades jobs related to housing have taken severe hits, with employment down by nearly one-third - a loss of over one million jobs. The Treasury said in a prepared statement, "Such losses not only indicate significant problems in the residential construction sector, but also suggest that the need for affordable housing has risen markedly during the recession."

The release of these funds are part of the $3 billion made available by the Obama administration's Recovery Act for states to construct low-income housing. The Treasury Department will work with state housing agencies to jump start the development or renovation of qualified affordable housing for families across the country.

State agencies must meet eligibility requirements and go through the Treasury's application process to qualify for funding - these funds are the second round in a series of awards based on a rolling application process.

The funds to be awarded are $164 million to Indiana, $17 million to Missouri, $53 million to Tennessee, and $33.7 million to the District of Columbia. The Treasury Department anticipates making similar announcements in the coming weeks.

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Monday, 26 February 2024

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