Housing Trust Fund Receives $700 million

On April 6, HUD announced the disbursement of nearly $700 million through the Housing Trust Fund (HTF) program to states across the nation for the production and preservation of affordable housing. The HTF was launched in 2008 and is specifically designed to supplement existing federal, state, and local housing programs that seek to preserve and increase the housing stock for low- and extremely low-income families, as well as homeless households. Since 2017, 775 units have already been constructed or rehabilitated using the funds, while another 280 are under construction. Entities that receive assistance through the program are required to maintain adequate standards of safety and sanitary conditions. HTF allocations may be used by states and state-designated bodies to produce or preserve affordable housing through the acquisition, new construction, reconstruction, and rehabilitation of non-luxury housing with suitable amenities. Units that receive funding through the program must maintain an affordable status for 30 years. The HTF program is capitalized through annual contributions from Fannie Mae and Freddie Mac, and this year’s allotment is more than double the $322 million disbursed last year. HUD annually allocates HTF funds using a specific formula and requires grantees to use at least 80 percent of each annual grant for financing affordable rental housing, up to 10 percent towards homeownership, and up to 10 percent towards administrative and planning costs. Current estimates suggest that this year’s allocation will fund more than 5,400 new affordable units.

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