Communities Leverage State and Local Fiscal Recovery Funds to Recover from Pandemic and Invest in Housing Affordability

The U.S. Department of the Treasury (Treasury) issued a fact sheet on February 14 highlighting how county governments are using State and Local Fiscal Recovery Funds (SLFRF) to recover from the pandemic and invest in their communities. The SLFRF program provided more than $65 billion in flexible funding to county governments. Counties are leveraging SLFRF to invest in housing, help impacted workers, support small businesses, respond to public health needs, and make key investments in infrastructure. Treasury announced that through September 2022, SLFRF recipients had reported budgeting $14.2 billion for nearly 1,800 housing affordability projects, including efforts to provide short-term assistance and develop new, permanent affordable housing. 

To support states and localities in leveraging these funds for affordable housing, NLIHC urged Treasury to issue clear guidance on how communities can use SLFRF to meet the housing needs of people with the lowest incomes. Treasury published a final rule on the SLFRF program that addressed many of NLIHC’s concerns and recommendations in January 2022. The Biden administration has encouraged jurisdictions to use SLFRF to expand the housing supply and provide short-term assistance, including supplementing emergency rental assistance (ERA) programs. Treasury released updated guidance and an “Affordable Housing How-To Guide” in July 2022 to help state and local governments implement use of these funds for affordable housing (see Memo, 8/1/22).

The fact sheet issued by Treasury provides examples of counties investing in affordable housing. Greenville County, South Carolina, allocated $10 million to produce multi-family and single-family affordable housing units, preserve current affordable housing stock, and develop new infrastructure and multi-family units in a qualified census tract. Tarrant County, Texas, devoted nearly $34 million to expanding permanent supportive housing. Finally, Treasury highlights a $9 million allocation made by Washington State’s Snohomish County for the identification, planning, and purchase of a multi-unit non-congregate shelter that will include services for individuals experiencing homelessness.

To learn more about how states and localities are investing SLFRF funds in housing, visit NLIHC’s SLFRF program webpage.

Read Treasury’s SLFRF fact sheet at: https://bit.ly/3k0bh6B

Visit NLIHC’s State and Local Fiscal Recovery Fund program webpage at: https://bit.ly/3aQgQj4