Consistent with the One Big Beautiful Bill, U.S. Federal Housing Expands America’s Affordable Housing Supply in Rural and Underserved Communities – FHFA (.gov)

Report on Increased Investment in U.S. Affordable Housing and Alignment with Sustainable Development Goals

A new federal directive has been issued to significantly expand the supply of affordable housing within the United States. This policy change directly supports the achievement of several key United Nations Sustainable Development Goals (SDGs) by increasing financial deployment for low-income housing solutions.

Policy Adjustment and Financial Allocation

The Federal Housing Finance Agency (FHFA) has authorized an increase in the investment capacity for government-sponsored enterprises Fannie Mae and Freddie Mac in the Low-Income Housing Tax Credit (LIHTC) market. This measure is designed to enhance the development of safe and sound affordable housing units.

1. Total Investment Increase: The combined annual investment cap for Fannie Mae and Freddie Mac has been raised from $2 billion to $4 billion.
2. Individual Enterprise Cap: Each enterprise, Fannie Mae and Freddie Mac, is now authorized to invest up to $2 billion annually in LIHTC properties.

Targeted Allocations for Underserved Communities

A significant portion of the increased investment is specifically earmarked to address critical housing needs in marginalized areas, directly contributing to SDG 10 (Reduced Inequalities).

• Difficult-to-Serve Markets: 50% of the total investment capacity ($2 billion) is reserved for LIHTC properties in markets with acute affordable housing shortages.
• Rural Communities: A minimum of 20% of the funds allocated to difficult-to-serve markets (at least $400 million) must be directed towards fulfilling the Duty to Serve requirements for rural communities.

Contribution to Sustainable Development Goals (SDGs)

This policy action represents a substantial commitment to advancing global sustainability targets through domestic housing finance reform.

SDG 11: Sustainable Cities and Communities

• The primary objective of this initiative is to advance Target 11.1, which aims to ensure access for all to adequate, safe, and affordable housing. By doubling the investment in LIHTC, the policy directly increases the housing supply for vulnerable populations.

SDG 10: Reduced Inequalities

• The policy actively works to reduce inequalities by mandating investment in historically underserved areas. The specific set-asides for difficult-to-serve and rural markets ensure that financial resources are channeled to communities most in need, mitigating geographic and economic disparities.

SDG 1: No Poverty

• Access to affordable housing is a cornerstone of poverty reduction strategies. By lowering housing cost burdens for low-income families, this initiative helps to improve financial stability and enables households to allocate resources to other essential needs such as food, healthcare, and education.

Analysis of Sustainable Development Goals (SDGs) in the Article

1. Relevant Sustainable Development Goals (SDGs)

1. SDG 11: Sustainable Cities and Communities
   • The article’s primary focus is on increasing the “affordable housing supply” in the U.S. This directly aligns with SDG 11, which aims to make cities and human settlements inclusive, safe, resilient, and sustainable. The initiative to expand investment in Low Income Housing Tax Credit (LIHTC) properties is a clear action towards achieving sustainable community development.
2. SDG 1: No Poverty
   • Access to affordable housing is a critical component in poverty alleviation. The article specifies that the investments are for “Low Income Housing Tax Credit properties,” directly targeting individuals and families with low incomes who are most vulnerable to poverty. By increasing the supply of affordable housing, the initiative helps to reduce the financial burden on low-income households, contributing to the goal of ending poverty in all its forms.
3. SDG 10: Reduced Inequalities
   • The article highlights a commitment to reducing inequalities by specifically targeting underserved areas. It states that half of the investment will be “reserved for difficult to serve LIHTC markets” and a portion of that will be for “Duty to Serve Rural Communities.” This targeted approach addresses geographic and economic disparities in housing access, aligning with the goal of reducing inequality within and among countries.

2. Specific SDG Targets

1. Target 11.1: By 2030, ensure access for all to adequate, safe and affordable housing and basic services and upgrade slums.
   • This is the most direct target addressed. The entire article is about a policy action—doubling the investment capacity of Fannie Mae and Freddie Mac to $4 billion per year—explicitly to expand the “affordable housing supply” through the LIHTC program.
2. Target 10.2: By 2030, empower and promote the social, economic and political inclusion of all, irrespective of age, sex, disability, race, ethnicity, origin, religion or economic or other status.
   • The policy’s provision to reserve funds for “difficult to serve LIHTC markets” and “Rural Communities” is a direct measure to promote the economic inclusion of populations that may be geographically or economically marginalized, thereby addressing this target.
3. Target 1.4: By 2030, ensure that all men and women, in particular the poor and the vulnerable, have equal rights to economic resources, as well as access to basic services…
   • Affordable housing is a fundamental basic service. The focus on “Low Income Housing” directly supports this target by aiming to improve access to essential housing resources for “the poor and the vulnerable.”

3. Indicators for Measuring Progress

1. Total annual investment in affordable housing properties.
   • The article provides a clear, quantifiable indicator of the financial commitment towards affordable housing. It states the investment is increasing to a “total of $4 billion per year” from Fannie Mae and Freddie Mac into LIHTC properties.
2. Investment allocated to underserved markets.
   • The article implies a specific indicator for measuring progress on reducing inequalities by stating that “half of which [$2 billion] will be reserved for difficult to serve LIHTC markets.”
3. Investment allocated to rural communities.
   • A more granular indicator is mentioned for rural areas: “at least 20% of that half will be Duty to Serve Rural Communities.” This translates to a measurable commitment of at least $400 million annually for rural housing initiatives.

Summary Table of SDGs, Targets, and Indicators

Source: fhfa.gov