National Housing Trust Fund

Earlier this year, Congress approved major legislation to address the current foreclosure crisis. As part of this bill, a National Housing Trust Fund (NHTF) was created – fulfilling a goal that affordable housing advocates have had for nearly ten years.

Beginning in federal fiscal year 2010 (fall of 2009), the NHTF will take money from Fannie Mae and Freddie Mac and provide it to state governments. In turn, states will use the dollars to produce new units of affordable housing, with 75% of the housing targeted to the lowest income individuals and families – people with incomes below 30% of area median income. NHTF dollars are a permanent source of funding – while they will fluctuate based on the economic performance of Fannie Mae and Freddie Mac, they are not HUD funds and therefore cannot be taken away on a year to year basis during the federal budget process. If NHTF were to start today, estimates suggest that there would be approximately $300 million available, but advocates are hopeful that this amount can be increased in upcoming years.

There are now two key goals with respect to the NHTF. First, ensuring that the Administration implements the new program properly, and second, attempting to find sources for additional money that can go into the NHTF. To get involved in these efforts, go to www.nhtf.org.

Because affordable housing is needed for so many groups of low income and homeless Americans, individual state governments will face difficult choices in deciding how to use NHTF dollars. Advocates who believe in the importance of providing new housing for youth aging out of foster care, families who could keep their children out of foster care with a stable place to live, and families who could reclaim children from foster care if they had housing will need to make a forceful case at the state level that this is an effective use of funds.

Making this case can involve the use of cost savings data that NCHCW can provide you with. NCHCW can also provide technical assistance to help connect you with state housing finance agencies – the entities of state government that in most cases will distribute NHTF monies. A full list of these agencies can be found at http://www.ncsha.org/section.cfm/4/39/187.