More than 200,000 affordable homes will result from the nearly $14 billion the U.S. Department of Treasury invested in the nation's housing finance agencies (HFAs) Tuesday.
The department's purchase of housing bonds is part of the Obama Administration's Housing Finance Agency Initiative, an element of its Making Home Affordable program.
The HFA Initiative is expected to come at no cost to taxpayers.
“These bond proceeds — combined with the $7.7 billion in retail housing bonds the initiative requires state HFAs to issue — will allow HFAs to finance more than 200,000 affordable homes, while generating jobs and tax revenue for the economy,” said Susan Dewey (pictured), president of National Council of State Housing Agencies (NCSHA).
“HFAs are already putting these resources to work to provide first-time home buyer mortgages and finance rental housing,” she added.
“Supporting the work of state and local HFAs is critical to the Administration's broader initiative to stabilize the housing market, which is helping to keep mortgage rates low and mortgage finance flowing for American households across the country," said Treasury Secretary Tim Geithner.
Read more about the initiative in the joint statement issued by the Treasury, U.S. Department of Housing & Urban Development, and the Federal Housing Finance Agency (PDF) and in the NCSHA press release (PDF).