The HFA Initiative is a key element to the Obama Administration’s Homeowner Affordability and Stability Plan, which attempts to expand resources for low-to-middle income borrowers to purchase or rent homes. The Treasury does not expect the Initiative to come at a cost to taxpayers, according to the announcement.

In October, the Treasury announced two parts of the initiative, the New Issue Bond Program (NIBP) to support new lending by the HFAs, and the Temporary Credit and Liquidity Program (TCLP) to deliver relief to the agencies’ financial strains.

Through more than 90 participating HFA’s, the Treasury attempts to provide affordable financing to “hundreds of thousands” of borrowers to purchase, rehabilitate or refinance a home. The HFA’s will also provide multifamily loans to keep rents affordable for borrowers.

“Supporting the work of state and local HFAs is critical to the Administration’s broader initiative to stabilize the housing market, which is helping to keep mortgage rates low and mortgage finance flowing for American households across the country,” said Treasury secretary Tim Geithner.

Susan Dewey, president of the National Council of State Housing Agencies (NCSHA) and executive director of the Virginia Housing Development Authority said that the bond proceeds from the recently completed transactions, coupled with the $7.7bn in retail housing bonds issued by the state HFAs allows the agencies to finance more than 200,000 homes.

So I still don't know what to think. I know a lot of you are watching the purchases due to the tax credit and wondering what will happen when July 1st rolls around. Now with this initiative, will it help or artificially promote purchasing only to fall flat once it's over? What do you think? Feel free to comment on this, ask questions or even weigh in with opinions on any of our blog posts.