The Biden administration is launching a multiagency effort to encourage states and cities to convert more empty office buildings into housing units, according to the Associated Press. Billions of federal dollars are available to help spur such transitions.
The new initiative, announced this morning, involves the departments of Housing and Urban Development and Transportation, along with the General Services Administration and the Office of Management and Budget, in a multipronged effort to address both the national shortage of affordable housing and the post-pandemic surplus of vacant office buildings.
Several of the new measures will be designed to encourage the creation of new affordable housing units near transportation hubs like bus terminals and subway stations. Upwards of $35 billion in lending capacity will be made available to provide below-market rate loans to finance both new housing construction and office conversions near transportation hubs.
The Department of Transportation is also releasing new guidance to make it easier for transit agencies to transfer unused properties or buildings to local governments or nonprofit organizations for conversion into affordable housing. In addition, the GSA will work with the Office of Management and Budget to identify surplus federal properties that could similarly be transferred for development into affordable housing units.
The White House is also releasing a Commercial to Residential Federal Resources Guidebook with over 20 federal programs across six federal agencies that can be used to support conversions. These programs include low-interest loans, loan guarantees, grants, and tax incentives for developers.
