HUD Publishes Housing Trust Fund State Allocations
HUD published in today’s Federal Register the state-by-state 2016 allocations for the Housing Trust Fund (HTF). As HUD announced last month, total 2016 HTF funding is approximately $174 million.
Pursuant to the HTF Interim Rule, state allocations are determined by a formula based on four factors: (1) a state’s relative shortage of rental housing available nationwide to extremely low-income (ELI) families (persons with incomes at 30 percent of area median income (AMI) or less); (2) a state’s relative shortage of rental housing available nationwide to very low-income (VLI) families (persons with incomes at 50 percent of AMI or less); (3) a state’s relative number of ELI renter households living in substandard, overcrowded, or unaffordable units in that state; and (4) a state’s relative number of VLI renter households living in substandard, overcrowded, or unaffordable units in that state. In addition, construction costs in each state are factored into the formula. The HTF statute establishes a $3 million minimum allocation for each of the 50 states and the District of Columbia.
As NCSHA reported last week, HUD issued on April 28 Notice CPD-16-07, which provides guidance to HTF grantees on completing and submitting their FY 2016 HTF allocation plans. To be eligible to receive HTF funds, states must prepare and submit their HTF allocation plans by August 16, 2016.
NCSHA expects HUD to release additional HTF guidance in the coming weeks, including a sample allocation plan, which it will publish on the HUD Exchange Resource Page; guidance on maximum per unit development subsidies, rehabilitation standards, operating cost assistance, and environmental requirements; and a technical assistance guide on how to structure projects to make rents affordable to ELI families.