The Treasury Department has unveiled a temporary plan to provide additional funds to local and state housing finance agencies (HFAs) that are having a tough time stabilizing housing markets and providing support to local affordable housing programs. The initiative features a temporary credit and liquidity program for local housing agencies and a bond purchase program to support new lending. Treasury will buy securities issued by Fannie Mae and Freddie Mac that are backing the mortgage revenue bonds issued by the state HFAs. Officials say affordable multifamily housing development is part of the program, with the new bond issuance expected to support the construction of “tens of thousands” of new rental units.
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From “Affordable Housing Gets Treasury Boost” GlobeSt.com (10/20/09) Morphy, Erika