In an interview reported by the Boston Globe, U.S. Representative
Barney Frank indicated he wants the government to spend $10 billion on stalled
low-income housing tax credit projects unable to
secure equity. The Boston Globe reports that, “Frank is proposing
that the US Treasury buy $5 billion in low-income housing tax credits, a key
source of funding for affordable housing, and provide states with another $5
billion they can spend on hundreds of stalled projects”¦. Frank said the
Treasury could buy the credits and hold them until the market improves and then
resell them to recoup its money. He said the government also could send money
to states to help developers with funds they need to get projects
moving.” Read More…