The National Housing Trust Fund (Trust Fund) is a permanent federal fund authorized by the Housing and Economic Recovery Act of 2008 (HERA). It provides grants to states to increase and preserve the supply of rental housing for extremely low- and very low-income families, including homeless families, and to increase homeownership for extremely low-income families and individuals.
HFAs and the Trust Fund
Each state will decide whether its HFA or another state entity will receive these grants, which will be allocated according to a needs-based formula to be developed by HUD. Eligible Trust Fund activities are defined as the production, preservation, and rehabilitation of rental housing; and the production, preservation, and rehabilitation of housing for homeownership, including down payment assistance, closing cost assistance, and assistance for interest rate buy-downs. All assistance must be used to benefit very low-income families (with incomes not greater than 50 percent of area median income (AMI)) and at least 75 percent of assistance received must be used to benefit extremely low-income families (with incomes not greater than 30 percent of AMI). State spending on homeownership activities is limited to not more than 10 percent of total assistance provided.
HERA requires Fannie Mae and Freddie Mac (the GSEs) to transfer a percentage of their new business to finance the Trust Fund. Since enactment of the legislation, Fannie Mae and Freddie Mac have been placed into conservatorship. Their conservator, the Federal Housing Finance Agency (FHFA), has directed the GSEs to suspend their contributions to the Trust Fund indefinitely because it has determined they are undercapitalized.
NCSHA and other affordable housing advocates are continuing to search for additional revenue sources for the Trust Fund. President Obama’s FY 2010 Budget calls for $1 billion for the Trust Fund. Advocating for Trust Fund resources and a dedicated, sustainable funding source is one of NCSHA’s Legislative Priorities.
Useful Link: National Housing Trust Fund Campaign Website
Printer-friendly versionNCSHA Blog Posts
- July 20, 2010
Two critical NCSHA priorities—the Tax Credit Exchange Program extension and Housing Trust Fund and related voucher appropriations—face increased risk this week, as Senate Majority Leader Reid (D-NV) moves to replace the pending tax extenders and jobs bill, H.R. 4213, that contains them with a simple extension of federal unemployment benefits, calculating that the political imperative both parties feel to extend these benefits will provide sufficient Republican votes to pass it. - June 28, 2010
On June 24, the Senate defeated a procedural motion to advance a revised substitute amendment offered by Senate Finance Committee Chairman Max Baucus (D-MT) to the House-passed tax extenders and jobs bill, the American Jobs and Closing Tax Loopholes Act, H.R. 4213. This was the third unsuccessful attempt to move a substitute amendment since the Senate began consideration of the House-passed bill June 8.
Housing Headlines
- Senate Committee on Finance
- House Ways and Means Committee
- New York Times
Housing Trust Fund - Resources
- February 26, 2010The Housing Trust Fund (Trust Fund) is a permanent federal fund authorized by the Housing and Economic Recovery Act of 2008 (HERA). It provides grants to States to increase and preserve the supply of rental housing for extremely low and very low-income families, including homeless families, and to increase homeownership for extremely low-income families and individuals.
- January 28, 2010
