Expect a "Rapid Acceleration" of Affordable Housing Development

Over the next five years, affordable housing development is poised to take off, thanks to essential support from the federal government. Jennifer Litwak, executive director at Housing on Merit, forecasts “rapid acceleration” of affordable housing development. Litwak is speaking on the topic at the GlobeSt.com Apartments conference October 26 and 27 on the Future Strategies for Affordable Housing panel.

“My three-to-five year forecast is that there will be a rapid acceleration of affordable housing development,” Litwak tells GlobeSt.com. “Since Housing on Merit has seed funded the Housing Innovation Collaborative, a non-profit housing production-focused R+D platform showcasing and piloting new design, finance, & policy solutions to address the housing affordability crisis, we hope it’s within the context of incorporating innovation in to affordable housing development.”

Specifically, Litwak is excited about the recently passed legislation that will drive $322 billion in housing and community development resources, which passed The U.S. House of Representatives Financial Services Committee in mid-September. “The committee’s budget amendment includes $80 billion to build, preserve or retrofit more than 3 million affordable housing units, with $37 billion for the National Housing Trust Fund, $35 billion for the HOME program and $10 billion for the Capital Magnet Fund,” says Litwak.

The legislation has numerous benefits for many facets of affordable housing. “The bill includes $90 billion in rental assistance to low-income renters, including $75 billion for hundreds of thousands of Housing Choice vouchers, with $25 billion of those funds aimed at helping those who have experienced or are at risk of experiencing homelessness,” says Litwak. “Eighty billion dollars is aimed at addressing public housing capital backlog.”

It will also provide $8.5 billion for Community Development Block Grant (CDBG) funding, which will include funding for colonias and manufactured housing communities, according to Litwak. “The bill includes $10 billion in first-time, first-generation homebuyer down payment assistance. The bill provides $2 billion for the Indian Housing Block Grant Program and $9.64 billion for a housing investment fund,” she says.

Since the pandemic, there has been an increase in support for affordable housing. Litwak also notes that HUD published Notice CPD-21-10 to establish the requirements for the $5 billion provided under the American Rescue Plan Act through the HOME program intended for use by HOME participating jurisdictions to provide housing and services primarily for households experiencing or at risk of homelessness. She explains, “HOME-ARP may be used to develop affordable housing, for tenant-based rental assistance (TBRA), to provide supportive services and for the acquisition and development of non-congregate shelter units. The notice is effective immediately.”