The cost of capital is a key driver of housing prices and rents. Chris Herbert and Henry Walther will discuss a new paper proposing a federal program that would provide below-market-rate debt to public, private, and non-profit developers who agree to limit rents and prices to levels that cover the actual costs of projects. This "cost-rent" model, common in Europe and previously used in the US, comes with important trade-offs, but its appeal lies in being simple, scalable, and effective at supporting affordability over time. Benjamin Preis will moderate.