11/15/2023
The Biden-Harris Administration announced new actions to address the U.S.'s affordable housing shortage and reduce climate pollution by converting high-vacancy commercial properties into residential housing. This initiative includes new financing, technical assistance, and the sale of federal properties. These steps are part of the White House Housing Supply Action Plan and the Administration’s efforts to tackle the climate crisis and lower energy costs.
Key actions include:
Investment and Property Repurposing:
The Department of Transportation (DOT) is providing guidance on using over $35 billion in lending capacity for transit-oriented development projects. This includes financing housing development near transportation.
DOT's new policy facilitates transit agencies to repurpose properties for affordable housing projects, allowing property transfers at no cost for such developments.
The Housing and Urban Development (HUD) is updating the use of the Community Development Block Grant fund, currently at $10 billion, to support the acquisition, rehabilitation, and conversion of commercial properties.
The General Services Administration (GSA) is expanding its Good Neighbor Program to promote the sale of surplus federal properties for potential residential redevelopment.
Encouraging Conversions with Federal Funding:
A new guidebook details over 20 federal programs across six agencies to support conversions.
Training workshops will be held to educate local and state governments and others in the real estate sector on utilizing these federal programs.
DOT will provide new technical assistance to support municipalities and developers.
The Department of Energy (DOE) launched a toolkit for zero emissions housing conversions, highlighting the Inflation Reduction Act’s financial incentives.
The Treasury Department is emphasizing tax incentives for builders of multifamily housing, focusing on energy efficiency and clean electricity generation projects.
Collaboration with States, Localities, and the Private Sector:
The Administration is urging state, local, tribal, and territorial entities to identify public tools and opportunities to facilitate conversions.
The National Association of Counties (NACo) and the American Planning Association are undertaking initiatives to support and educate on commercial to residential conversions.
Overall, these actions aim to create affordable, energy-efficient housing near transit and jobs, addressing both housing shortages and environmental concerns.
