The plan, officials said, will help close the affordable housing gap and "ease the burden of housing costs," CNN reported.
Last week, President Joe Biden said combating inflation was a top priority for his administration's domestic policy front as American households are experiencing the worst inflation rates seen in 40 years. The plan to boost the supply of affordable housing comes after home prices in America –– a key indicator of inflation –– surged 19.8% in February, according to the latest data from the S&P Home Price Index.
This new action plan has a five-year goal to address the housing supply shortage and is set to be backed by a series of legislative proposals.
Here's what's in the plan.
Federal Funding for Zoning Reform
Part of the action plan includes using existing federal funding to encourage state-level zoning and land-use policy reform. The funding will come from the bipartisan infrastructure deal and the Department of Transportation, a senior official told reports.
The administration is also working to improve federal funding channels for multifamily housing, and the construction and remodeling of single-family homes, another official said.
More Manufactured Housing
A fact sheet of the action plan lays out plans to boost funding for the production of manufactured homes, and accessory dwelling units, like garage apartments and backyard homes. The Biden Administration is also looking to fund 2-4 unit properties and smaller multi-family apartment buildings.
Combating Large Institutional Home Investors
To address "the growing trend of large institutional investor purchases of single-family homes" the administration is aiming to direct the supply of affordable housing for owner-occupants.
Addressing the Supply Chain Slow Downs in Home Repairs
The affordable housing action plan will also work to "address supply chain challenges" to "improve building techniques to finish construction in 2022 on the most new homes in any year since 2006," an administration official said.
HUD Secretary Marcia Fudge and Commerce Secretary Gina Raimondo are working together on supply chain issues, the fact sheet detailed.