The Biden administration is releasing a plan to address the affordable housing shortage in the U.S. in hopes of “easing the burden of housing costs over time by boosting the supply of quality housing in every community.”

President Biden said in a statement that tackling inflation is his “top economic priority,” noting that housing is a driver of inflation. 

His plan, according to the statement, includes “legislative and administrative actions that will help close America’s housing supply shortfall in 5 years, starting with the creation and preservation of hundreds of thousands of affordable housing units in the next three years.” 

Under the plan, jurisdictions that have reformed zoning and land-use policies will be incentivized. 

There will also be improvements to federal financing mechanisms for manufactured housing, multifamily housing, and the construction and rehabilitation of single-family homes; and steps to finance or produce more manufactured housing, accessory dwelling units, 2-4 unit properties and smaller multifamily buildings, among other policies.

Each regulatory move in the plan is “technical and modest,” according to the Wall St. Journal, but together are intended to “make it easier and more economical to build affordable housing.”

The GSEs will also have a role as the White House looks at ways to boost construction as well as the availability of manufactured homes. 

Fannie Mae will consider purchasing construction-to-perm loans for multifamily housing, instead of only buying mortgages for homes already built and certified for occupancy, and Freddie Mac will consider purchasing “chattel loans” that are secured by manufactured homes but not the land they sit on. 

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