Last month, HUD allocated $382 million to states from the national Housing Trust Fund (HTF), which provides a source of capital funding to increase and preserve the supply of housing for people with the lowest incomes, including those experiencing homelessness. Funding for HTF comes from a modest contribution of new business income from the Government Sponsored Enterprises (GSEs), Fannie Mae and Freddie Mac, rather than federal appropriations. Unfortunately, but as expected, the GSEs’ new business over the last year was substantially lower than it had been in the past, resulting in a cut of approximately 50 percent compared with 2022 HTF allocations.

Thirty-nine state HFAs, as well as Puerto Rico and the Virgin Islands administer HTF, as do the District of Columbia, Guam, and Northern Mariana Islands.