The Treasury Department announced updated guidance for the State and Local Fiscal Recovery Fund (SLFRF) and the Emergency Rental Assistance (ERA2) programs, which make it easier for states and local governments to use these programs to build and preserve affordable housing.
SLFRF: Treasury’s updated Frequently Asked Questions for SLFRF expand the universe of properties that would be presumptively eligible to receive SLFRF financing to include:
- Project Based Vouchers;
- Choice Neighborhoods;
- Section 108 Loan Guarantees;
- U.S. Department of Agriculture rural housing programs;
- Any project that houses families earning up to 120 percent of area median income (AMI), as long as the project remains affordable to those households for at least 20 years; and
- Properties supported by Fannie Mae or Freddie Mac and meet the needs of workers priced out of certain housing markets.
ERA2: Treasury’s updated FAQs for the ERA program expands the eligible uses of ERA2 funds for affordable housing production to include the acquisition of real property and predevelopment activities, such as:
- Architectural and engineering design;
- Planning;
- Permitting;
- Surveys;
- Appraisals; and
- An environmental review associated with an eligible project.
