The housing-related provisions in the COVID-19 relief law align with President Joe Biden's campaign promise to increase access to affordable housing, although many of the provisions provide only temporary assistance.
The American Rescue Plan calls for about $47 billion in housing aid, said Douglas Rice, a senior fellow at the Center on Budget and Policy Priorities. The housing provisions include about $21.6 billion in emergency rental assistance, $10 billion in aid to homeowners, as well as money to help Native American communities and rural areas.
The law allocates $5 billion for the HOME Investment Partnerships program, which can be used to develop new affordable housing, but we don't yet know how states and local communities will use those dollars. That provision overlaps with Biden's promise to establish a $100 billion affordable housing fund and to expand the HOME program.
Overall, the housing provisions in the law are aimed at addressing the immediate consequences of the pandemic, Rice said.
"The emphasis here is providing temporary rental assistance as well as aid for homeowners experiencing financial hardship," he said.
In addition to the housing money in the law, the White House pointed to action by the Centers for Disease Control and Prevention to extend the eviction moratorium through March and Biden's action in February to extend the foreclosure moratorium for homeowners through June 30.
Affordable housing experts said it will take more than the American Rescue Plan to meet Biden's promise to increase the supply of affordable housing. The White House is expected to propose an infrastructure bill next, and housing advocates hope it includes affordable housing measures.
The United States faced a shortage of affordable housing before the pandemic, but it has been exacerbated by the resulting economic decline and job losses.
"Much more will be needed to address the underlying shortage of affordable homes that existed before the pandemic and will continue to exist after it," said Jen Butler, of the National Low Income Housing Coalition. "Just one in four households who qualify for housing assistance receives it due to decades of chronic underfunding by Congress."
The American Rescue Plan is a step toward Biden's promise to increase the supply of affordable housing, but he will need more substantial funding for permanent housing to achieve his campaign promise. For now, we rate this promise In the Works.
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