Affordable Housing Gets New Funding: Unused Pandemic Aid

By: Anneken Tappe · March 11, 2024 · Reading Time: 2 minutes

Helping With Housing

The government spent billions of dollars on aid during the pandemic. And even though it is now behind us, the coffers aren’t empty yet. Last week, the Treasury Department said state and local governments would be allowed to use what’s leftover from the $350 billion State and Local Fiscal Recovery Fund to tackle the affordable housing crisis.

Reuters projects the amount leftover could be as high as $40 billion.

Freeing Up Funds

The new funding will also be available to support more families, as restrictions have eased. For example, the housing projects that may benefit from it can serve families earning up to 120% of regional median income. This threshold had been significantly lower at 65% before.

The Treasury also announced that unspent pandemic funds from the Emergency Rental Assistance Program may be rerouted to supporting affordable housing project developments.

America’s housing affordability crisis is rooted in the lack of availability of enough housing units overall, and specifically enough affordable housing units. High costs of materials and labor are hampering efforts to build enough to stem the demand. Meanwhile, home prices remain elevated, and interest rates that rose in the wake of the Federal Reserve’s fight against inflation, remain high.

Cities and states across the nation are trying to tackle the housing affordability issue. Houston, Texas, has become the poster child of one approach: changing zoning laws to allow for more units to be built.

Looking for more stories like this? Check out On the Money — SoFi’s one-stop-shop for news, trends, and tips!

Check it out

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision. 
No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content. 
Communication of SoFi Wealth LLC an SEC Registered Investment Advisor
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners. 

TLS 1.2 Encrypted
Equal Housing Lender