Biden Administration Pushes for Turning Vacant Offices into Affordable Homes
WASHINGTON – The Biden administration is kick-starting an ambitious multi-agency project aimed at transforming the nation’s empty office spaces into much-needed housing units. Unveiled on Friday morning, this groundbreaking initiative ropes in several key government departments, including Housing and Urban Development (HUD), Transportation, the General Services Administration, and the Office of Management and Budget. The goal? To simultaneously address the glaring national shortage of affordable housing and the glut of vacant office buildings left in the wake of the pandemic.
“It’s a golden opportunity to not just boost the housing supply but to also breathe new life into our main streets. In essence, it’s a win-win,” said Lael Brainard, director of the National Economic Council. To make this happen, Brainard explained that resources are being pooled from across the federal government.
A central component of this initiative will incentivize the development of affordable housing units close to major transportation arteries, such as bus terminals and subway stations. Transportation Secretary Pete Buttigieg revealed that his department is preparing to roll out new guidelines for states and cities, aimed at helping them tap into federal funds. Specifically, these guidelines will clarify how to secure financial aid through two major federal programs: the Transportation Infrastructure Finance and Innovation Act (TIFIA) and the Railroad Rehabilitation & Improvement Financing (RRIF).
Buttigieg further elaborated that a massive “over $35 billion in lending capacity” will be unlocked. These funds will offer below-market rate loans aimed at new housing constructions and the conversion of existing office spaces into residential units, especially those near transport hubs. “Our urban centers are already built with public transit in mind. We want to maximize this existing infrastructure to create more affordable housing options that also make daily commuting cheaper,” said Buttigieg.
Going a step further, the Department of Transportation is set to issue additional guidance to facilitate the transfer of underutilized properties or buildings to local governments or nonprofit organizations. These properties can then be converted into affordable housing. Buildings like unused storage facilities could also be sold to private developers at below-market prices, under the condition that a certain percentage of the new housing remains affordable.
By taking a multi-faceted approach, this initiative not only aims to solve the housing crisis but also leverages existing resources to create sustainable, connected communities.
