The U.S. Department of Treasury recently released new guidance that provides additional flexibility for state, local and tribal governments to use the American Rescue Plan Act (ARPA) State and Local Fiscal Recovery Funds (SLFRF) to increase the supply of affordable housing.
The U.S. Department of Treasury recently released new guidance that provides additional flexibility for state, local and tribal governments to use the American Rescue Plan Act (ARPA) State and Local Fiscal Recovery Funds (SLFRF) to increase the supply of affordable housing.
The Affordable Housing How-To Guide was created in partnership with the Treasury and the U.S. Department of Housing and Urban Development. According to the guide, SLFRF permits funds to be used, among other uses, to combat the public health and negative economic impacts of the pandemic.
Previous guidance from the Treasury encouraged local governments to dedicate portions of the SLFRF toward the development, repair and operation of affordable housing units.
The updated guidance now includes:
Treasury clarifies in the guidance that SLFRF may be used to finance the development, repair or operation of any affordable rental housing unit that provides long-term affordability of 20 years or more to households at or below 65% of the local area median income.
In Michigan, low wages, wage disparities, racial inequities, inflation and a shortage of affordable and available rental homes are contributing factors to the state’s housing concerns.
A recent report by the National Low Income Housing Coalitions shows the significant gap between renters’ wages and the cost of rental housing.
In Michigan the data shows that a resident must:
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Read the full guide.
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