Buttigieg Wants to Use Transport Money for Affordable Housing

The Biden administration wants to use transportation money to help convert commercial buildings to housing near public transit, an effort aimed at helping reduce the record-high numbers of empty offices around the US.

The Transportation Department is set to release new guidance Friday to states and developers on how two federal programs—the Transportation Infrastructure Finance and Innovation Act and the Railroad Rehabilitation & Improvement Financing programs—can be used for housing development near transportation. The programs currently have more than $35 billion available in lending capacity.

“Our intention is to make the most of this opportunity to add more housing near transit in ways that not only reduce the cost of housing, but also often reduce the cost of transportation,” Transportation Secretary Pete Buttigieg said on a call with reporters.

The administration’s efforts come at a time when House Republicans are looking to slash overall discretionary spending, with cuts to transportation and housing funding.

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The Transportation Department is also debuting a new policy Friday of “pursuing transportation projects with the dual goals of increasing affordable housing supply and decreasing emissions,” according to a fact sheet from the administration. The department will release guidance for transit agencies to repurpose their properties into affordable housing.

Buttigieg said these efforts respond to how the pandemic changed commuting patterns for many Americans.

White House National Economic Council Director Lael Brainard said the administration is working to use resources from across its departments on this issue since commercial building vacancies are at an all-time high in some cities and communities, while housing supply is constrained. The administration said in the fact sheet that office vacancies have reached a 30-year high.

“This presents an area of opportunity to both increase housing supply while revitalizing main streets,” Brainard said. “It’s a win-win.”