Nearly $85 million in grant funding has been awarded to clear the way for more affordable housing to be built across the nation.
The first 21 awards under the federal Pathways to Removing Obstacles to Housing (PRO Housing) program will support communities “actively taking steps and demonstrating progress in addressing needless local housing barriers to housing production,” according to officials.
The grants will be used to update state and local housing plans, revise land-use policies, streamline permitting for construction, and initiate other steps to make it easier to build affordable housing. They’ll will also go toward preserving existing affordable housing units, providing gap funding to developments, and increasing access to homeownership.
Another $100 million is scheduled to be awarded this summer.
“Every American deserves affordable housing,” said Vice President Kamala Harris in a press call announcing the PRO Housing awards. “Yet, in communities across our nation, the cost of housing is just too high. Part of the reason for the high cost of housing is a lack of supply. In many communities, there’s simply not enough affordable housing available, and significant barriers prevent more from being built.”
For affordable housing developers, one obstacle is the cost to buy and develop land. Milwaukee received a $2.1 million award, which will help the city provide subsidies to builders to help them develop vacant lots and abandoned buildings into affordable housing, Harris said.
Another obstacle is insufficient infrastructure. In Denver, which was awarded $4.5 million, officials will offer loans to developers to build power lines and water mains needed for new housing, according to Harris.
While some efforts will take a while, others may be more immediate with the impact being seen this summer, said a senior official. For example, some communities may provide needed gap financing for affordable housing developments that are under way but face cost overruns.
Profiles of the recipients can be found here.
The demand for the awards was substantial, with requests exceeding $13 for every $1 available. Applications came from more than 175 communities across 47 states and territories.
“There’s no question about it. Rent is high, and homeownership feels out of reach for too many families,” said Adrianne Todman, acting secretary of the Department of Housing and Urban Development (HUD). “One reason for this is for more than a decade our housing supply has not kept up with the demand for homes. … We need more housing.”
The communities that did not receive funding in the first round will still be provided help to address their barriers and lower housing costs, according to Todman.
“Any community that raised their hand and said, ‘I want to take this step to help people in my town, in my city, in my state’ will be offered HUD’s help through our technical assistance,” she said.
Officials said PRO Housing is part of the Biden-Harris administration’s larger housing plan that calls for building 2 million affordable homes.
