On July 27, the U.S. Treasury Department released updated guidance that allows governments to use State and Local Fiscal Recovery Funds (SLFRF) from the American Rescue Plan Act (ARPA) to fully finance long-term affordable housing loans, including the principal of any such loans, subject to certain conditions and other changes that will facilitate significant additional financing for affordable housing projects, including those using the Low Income Housing Tax Credit (LIHTC).
Treasury has released updated FAQs, which include new guidance (2.14 and 4.9) on affordable housing development. Treasury also published a How-to Guide for Affordable Housing to assist SLFRF recipients in using their funds for affordable housing and provides information on combining different sources of federal funds.
Learn more from the Housing Advisory Group, who helped achieve these important updates to the guidelines!