National Housing Trust Fund/Housing Production

On July 30, 2008, the Housing and Economic Recovery Act of 2008 was signed into law. This historic bill establishes a National Housing Trust Fund, creates a Capital Magnet Fund for housing and economic development, and makes improvements to the Low Income Housing Tax Credit program.

The National Housing Trust Fund uses funds dedicated annually from Fannie Mae and Freddie Mac and would not require annual appropriations like other housing programs. Advocates are seeking additional funding sources in order to reach the Trust Fund’s goal of creating 1.5 million units of affordable housing within ten years.

At least 90 percent of Trust Fund resources would be for rental housing, including the production, preservation, and rehabilitation of rental housing, or for operating costs. Up to 10 percent can be used for homeownership activities for first-time homebuyers. At least 75 percent of the amount used for rental housing would have to be for extremely low income households (30 percent or less of area median income) or families with incomes at or below the poverty line. Up to 25 percent could be used for the benefit of very low-income families (30 to 50 percent of area median income). Funding would be distributed to States through a formula that HUD will establish.

National Housing Trust Fund Campaign Information
This link provides information about the campaign working to secure ongoing, permanent, dedicated and sufficient sources of revenue for the National Housing Trust Fund to build, rehabilitate and preserve 1.5 million units of housing for the lowest income families over the next 10 years.

Latest News:
The National Low Income Housing Coalition (NLIHC) held a national teleconference call on August 22 to present advocates with key components of the Housing Trust Fund signed into law on July 30. To listen to a recording of the call, visit the NLIHC’s website.