The Biden Administration on Wednesday announced new steps to tackle the housing supply crisis.

The plan by the U.S. Department of the Treasury allows the use of $350 billion in American Rescue Plan funds by state, local, and tribal governments toward the development, repair, and operation of affordable housing units.

The following is a statement from National Association of Realtors® President Leslie Rouda Smith:

"The top issue around the country among our 1.5 million members is housing supply. NAR commends the White House for addressing this challenge head-on and working across agencies on a comprehensive plan to provide the necessary flexibility for state and local governments.

"Any effort to add supply will help alleviate a historic shortage in affordable housing. NAR commissioned a landmark research report last year showing a lack of 5.5 million homes in the U.S.—a gap so large it would take more than a decade to dig out of, even with accelerated new construction. It is nothing short of an affordability crisis hurting first-time, first-generation, and middle-income Americans the most.

"NAR supports comprehensive action that includes investment in new construction, zoning reforms, expansion of financing, and tax incentives to spur investment in housing and convert unused commercial space to residential.

"We look forward to a continued partnership with the Administration, Congress, and business and nonprofit groups on an all-of-the-above approach to this historic challenge."

For more information on supply and affordability policy proposals supported by NAR: 2022 REALTOR® Legislative Priorities."

MBA's President and CEO Bob Broeksmit, CMB, released the following statement on the Department of the Treasury’s new guidance to increase the ability of state, local, and tribal governments to use American Rescue Plan funds to expand the supply of affordable housing:

"MBA commends the Biden administration for its commitment to addressing the ongoing shortage of available housing and appreciates the Treasury Department’s guidance that provides flexibility for how state and local governments can use available funds to finance affordable housing projects.

“With housing construction slowing amidst inflationary pressures, economic uncertainty, and higher interest rates, both public and private sector financing will be necessary to create the supply of affordable rental housing that is needed to help ease costs for families, especially minorities and those with low and moderate incomes.

"We will examine Treasury’s guidance in greater detail and look forward to our ongoing work with the administration, Congress, and industry stakeholders on safe and responsible policies that increase single-family and multifamily housing for homebuyers and renters.”

Jerry Konter, chairman of the National Association of Home Builders (NAHB) and home builder and developer from Savannah, Ga., today issued the following statement after the Department of Treasury announced new guidance on affordable housing development:

“NAHB commends the Biden administration and Department of Treasury for taking an important step forward to combat the nation’s housing affordability crisis by allowing state housing agencies to use State and Local Fiscal Recovery Funds to provide financing for Low-Income Housing Tax Credit (LIHTC) projects. This move to facilitate significant additional funding for affordable housing projects is something that NAHB has been fighting for and it will enable more multifamily developers to boost sorely needed production through the LIHTC. NAHB will continue to work with the Biden administration to solve the housing supply crisis to help builders produce more affordable single-family and multifamily housing.”