Lessons from the American Rescue Plan Act to Inform the Proposed $20 Billion Innovation Fund for Housing Expansion
April 08, 2024 by The article highlights the severe shortage of affordable housing in the US, with only 34 affordable rental homes available for every 100 extremely low-income renters. Federal programs like the HOME Investment Partnerships Program, the National Housing Trust Fund, and the Low-Income Housing Tax Credit (LIHTC) provide some support, but they meet only a fraction of the need. The Biden administration’s fiscal year 2025 budget proposes $20 billion in competitive grants to build and preserve affordable housing, aiming to incentivize localities to remove barriers to development. The American Rescue Plan Act’s State and Local Fiscal Recovery Funds (SLFRF) program offers lessons on how flexible federal grants can support housing development. Despite growing interest, localities struggle with the complexity of existing housing programs. The article suggests that additional, flexible funding could accelerate innovative local solutions to the affordable housing crisis5.