The plan aims to boost the supply of affordable housing by enhancing existing federal financing
"Financing" doesn't make housing more affordable. The only things you can change with financing are the length of the loan and the interest rate. The interest rate is determined by the federal funds rate the banks borrow money at +2% or so so they profit on the spread. Da Fed manipulates this to control inflation, so if it's at 5%, mortgages are gonna be 7% or more for a riskier borrower. Term lengths are already at 30 years, if you go to 40 years that's approaching the lifespan of houses, which is about 50 yeas on average. Except in the rare cases of historic homes that have been meticulously maintained, by the time a house is this old it has accumulated so many issue with plumbing, mold, roofing and rot it's cheaper to raze it and build new than to try and fix everything up. A 40 year term isn't home ownership, it's rental. It's multigenerational to pay off a 40 year mortgage.
2br $2150/mo
If you look at most houses built in the 70s in Wonder Years type suburbs, they used cheap materials and have been through a dozen different "owners" over their history of varying dedication to maintenance. Nobody ever paid the house off, it just kept getting resold with new mortgages handed out at ever higher prices. These places are now all substandard housing in the rental market as "affordable housing". People buying a house don't want them, they want new houses with new appliances and the latest in insulation and heating systems. Financing tricks aren't going to make the new houses any more affordable.
The only way you are going to get affordable housing is to build homes with the target rental price determined before you build it. No idea what the square footage and materials cost is to build something like town homes with 1-3 bedrooms, but they have to rent out at $500-1500 per unit depending on the #bedrooms. Those were the prices at my old Creekwood apartments.
We had all demographics there from young families to old folks, all low income. Enough safe space for the kids to go outside and play. I don't see why we can't just put up more buildings with this type of plan instead of keep building single family McMansions.
RE