WASHINGTON (CN) — The Biden administration on Wednesday morning rolled out a new plan that officials say will address an urgent need for new affordable housing in cities across the country.
The two-part program, which will provide as much as $185 million in subsidies for new housing developments, is aimed at addressing issues that have so far prevented cities and builders from undertaking affordable housing projects.
“Every American deserves affordable housing,” Vice President Kamala Harris said during a call with reporters Tuesday afternoon, “but in communities across our nation, the cost of housing is just too high."
The first round of funding will go to 19 cities and Washington, DC, Harris said, totaling around $85 million. Another roughly $100 million in awards is slated for later this summer.
Part of the federal cash injection will take the form of subsidies for builders to buy and develop vacant lots or abandoned buildings into affordable housing units. The program also will provide funding for cities to improve infrastructure like power and water lines to incentivize further development.
The vice president pointed to the city of Denver as a place where federal assistance could kickstart affordable housing.
“In Denver, there’s land available but it’s not yet connected to the electrical grid,” said Harris. “We will help Denver offer loans to developers to build the power lines and water mains that are necessary for new housing.”
Adrianne Todman, acting secretary of the Department of Housing and Urban Development, expounded on the critical need for more affordable housing.
“There’s no question about it,” she said. “Rent is high, and home ownership feels out of reach for too many families. One reason for this is that, for more than a decade, housing supply has not kept up with demand.”
The new White House initiative will help give cities and jurisdictions the tools they need to create pathways to new affordable housing and modernize existing homes, Todman said. Cities that weren't selected for the initial payout, she added, would receive technical assistance from the federal government to help address barriers to lowering housing costs.
“Any community that raised their hand and said, ‘I want to take this step to help people in my town, my city, my state,’ will be offered HUD help and technical assistance,” Todman said.
Senior administration officials have said they expect to see impacts from the first round of housing grants later this summer.
Wednesday’s announcement is part of a larger plan from the Biden administration to reduce the cost of housing across the country. The White House in March called on Congress to approve a bevy of housing legislation, including a bill that would provide $25,000 in down payment assistance to first-generation homebuyers and a separate measure that would give first-time homebuyers roughly $10,000 in tax credits for mortgage relief.
Biden called on Republicans to come to the table and pass these bills during his State of the Union address in March — and Vice President Harris renewed that call Tuesday.
“We have made progress in lowering housing costs,” she said, “and there is more work to do. President Biden and I will continue to fight to help more Americans afford to pay their rent and be able to afford to buy a home.”
Meanwhile, the White House says it is also stepping in to combat unfair renting tactics employed by landlords. The administration has urged the Justice Department and other agencies to take aim at illegal behavior such as algorithmically driven rent increases and collusion between landlords on rent pricing.
Biden has also vowed to crack down on the use of so-called “rental junk fees,” like convenience fees for paying rent online or fees to collect trash.
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