The Obama administration is preparing to announce that it will provide $35 billion to help state and local housing finance agencies, many of which were hit hard by the economic crisis and forced to curtail or suspend tax-exempt bond programs that allow them to provide affordable mortgages. But the window for $20 billion of the assistance may close by the end of the year.

Under the program, which could be announced as early as today, the Treasury Department would create a market for tax-exempt multifamily and single-family HFA bonds by purchasing up to $20 billion of them through government-sponsored enterprises Fannie Mae and Freddie Mac.

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