The U.S. Department of Treasury announced Tuesday that the American Recovery and Reinvestment Act (Recovery Act) has now provided more than $4 billion in funding, in an effort to spur the development of affordable housing around the country.

“The Recovery Act has created innovative partnerships between federal and state governments to provide a much needed boost to local economies,” said Neal Wolin, Treasury deputy secretary. “By uniting with state housing authorities, Treasury has made available more than $4 billion to jump start housing development in communities around the country. That investment has already resulted in hundreds of new construction jobs and new housing units for families in need of affordable alternatives.”

In May 2009, Treasury launched an innovative program under section 1602 of the Recovery Act. Under the 1602 program, housing agencies receive payments in lieu of tax credits to jump start the development or renovations of qualified affordable housing for families across the country. After receiving allocated funds, state housing authorities manage a competitive process to disburse funds to qualified developers.

The Recovery Act is part of the Obama administration’s effort to strengthen communities and ease pressures on the housing market. To date, 50 state and territorial housing authorities have received funds under the program to stimulate the constructions and completion of affordable housing projects.