The Department of the Interior is working alongside the Department of Housing and Urban Development to open federally owned land to combat the affordable housing shortage.
Currently, the United States is facing a shortage of seven million affordable units. The DOI has control of more than 500 million acres of land. The two agencies can transfer or lease federal land to states and local bodies to promote housing development. The agencies are also able to support the developments by assisting with the construction of required infrastructure.
High mortgage rates have made it difficult for Americans to purchase homes. On top of this, as construction costs have continued to increase, houses continue to become more expensive. The agencies said streamlining the process will aid in lowering the cost of new homes by increasing supply.
The partnership is intended to cut through some of the protocols required for building on federal land. These protocols include environmental reviews, regulations for transferring land and communications between different agencies.
The process will specifically be streamlined for public housing authorities, nonprofits and local governments. HUD’s position in the partnership is to ensure parties are developing affordable projects.
Areas most affected by the housing shortage are those in urban/suburban areas. This creates a challenge, as only 7.3% of all federal land is in metro areas that require more homes. Western states, such as Arizona, Nevada and California, have large portions of federally owned land suitable for housing developments.
Bipartisan efforts have already been in place to combat the issue. For example, the Biden administration sold 20 acres of land in the Las Vegas suburbs to Clark County. Despite the land being appraised at $20M, it was sold for only $2K. The County stated it would build 210 homes for households earning $70K or less every year. (Source)
