By David Lawder
WASHINGTON (Reuters) -The U.S. Treasury said on Wednesday it will allow state, local and tribal governments more flexibility to use COVID-19 rescue funds to boost the supply of affordable housing, including permission to issue direct long-term project loans.
The changes for the $350 billion State and Local Fiscal Relief Fund program aim to fill a financing gap for affordable housing projects, allowing them to be more easily developed, especially those that are eligible for the Treasury’s Low-Income Housing Tax Credit.
“The skyrocketing cost of rent in communities nationwide is one of the biggest burdens on family budgets, and increasing housing supply is one of the best ways to tackle inflation,” U.S. Senate Finance Committee Chairman Ron Wyden said in a statement.
The Oregon Democrat added that Treasury’s changes met his requests to stretch American Rescue Plan…