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The massive federal injection of funding into housing programs has had major impacts on many Americans’ ability to stay housed and out of debt, but fears loom as the end of some funding sources nears.
Writing in Route Fifty, Molly Bolan outlines the results of pandemic-era federal housing investment distributed through the American Rescue Plan Act revealed in a report from the Treasury Department.
Overall, state and local governments have dedicated roughly $63 billion to housing programs and spent about 85 percent of the funds. “State and local governments have spent over $5.5 billion in Homeowner Assistance Funds to help nearly 400,000 households avoid foreclosure, and overall foreclosures nationwide are 13% below pre-pandemic levels.”
When it comes to renters, federal programs have funded over 12.3 million household payments and helped create eviction diversion and mediation programs.
The significant benefits of housing assistance signal the high level of need, prompting concern among advocates as these federal programs come to an end or run out of funds. Bolan points out that some states and cities are developing their own dedicated funding sources to extend housing assistance programs.
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