National Housing Trust Fund

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National Housing Trust Fund

• A big deal, but not enough money (yet)!!!
• Dedicated funding to produce, preserve,
  rehabilitate and operate predominantly extremely
  low income housing and to increase homeownership
  for extremely and very low income households
• First new federal housing production program
  targeted to ELI since 1974
• Eight years of advocacy and education
• More than 5600 endorser organizations massive
  grassroots effort
• Modeled on almost 600 state and local housing
  trust funds

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National Housing Trust Fund

• Funded by streaming percentage of Fannie/Freddie
  new annual business into HTF (approximately 557
  million in 2007)
• Additional sources can be added
• 25 of NHTF money available in 2010, 50 in 2011
  and 100 in 2012
• Funds are federal financial assistance for the
  purpose of civil rights and fair housing

3
National Housing Trust Fund

• HUD to develop distribution formula within 12
  months based on
• Shortage of extremely low income rental units
  (priority for this factor)
• Shortage of very low income rental units
• Substandard, overcrowded housing
• paying more than 50 toward housing
• Construction costs
• Minimum state allocation 3 million

4
National Housing Trust Fund

• At least 75 of rental housing funds must benefit
  ELI or families at or below the poverty line
• All funds must benefit below 50 AMI
• 71 of ELI renters and 64 of ELI owners pay more
  than half of their incomes toward housing
  nationally

5
National Housing Trust Fund

• Up to 10 can be used for homeownership for
  principal residences of first-time homebuyers
• Homeownership costs could include down payment
  assistance, closing cost assistance, interest
  rate buy-downs for first-time homebuyers

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National Housing Trust Fund

• States will develop allocation plans. 10 for
  admin costs.
• State plans must reflect states priority housing
  needs distribution will be based on
• Geographic diversity
• Ability to obligate
• Extent of affordable rents
• Duration of affordable rents
• Use of other funding sources
• Merits of activity
• Provisions for public notice, hearings,
  consideration of comments on state plan
• States have 2 years to commit or spend funds

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National Housing Trust Fund

• Eligible NHTF recipients for-profits and
  non-profits that show
• Ability to own, construct, rehab, manage and
  operate affordable multifamily rental housing
• Experience to design, construct, rehab or market
  affordable homeownership housing or provide
  financial assistance for homeownership
• Financial capacity and familiarity with programs

8
National Housing Trust Fund

• Funds cannot be used for
• Political activities
• Lobbying
• Counseling
• Traveling
• Administrative expenses
• Candidate or political party endorsements

9
National Housing Trust Fund

• Penalties for misuse of funds
• No match
• No local admin costs covered
• Many issues for HUD regs
• Affordability
• Long term use restrictions
• Funds for operating costs
• Forms of assistance?
• PHAs as eligible recipients
• Reporting requirements

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Next Steps for NHTF

• Determine course of Fannie and Freddie and
  connection to NHTFs funding source
• Development of HUD regulations
• Identify new funding sources
• Ensure proper state administration of NHTF

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National Housing Trust Fund

• State level work
• Selection of state entity
• Get ready for development of state allocation
  plan state process for seeking applications and
  awarding NHTF funds

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Capital Magnet Fund

• More new resources to CDFIS or a nonprofit
  organization having as one of its principal
  purposes the development or management of
  affordable housing
• Housing or economic development or community
  service facilities connected to housing
• Housing primarily for ELI, VLI, and LI families
• Economic development or community service
  facilities to stabilize or revitalize low income
  area or underserved rural area
• Capitalize an affordable housing fund

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Financial Meltdown and Low Income People

• Encourage policies that permit tenants to remain
  in their homes for terms of their lease
• Acknowledge local rent control
• 200 million for renters displaced by foreclosure

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Thank you for your advocacy!

• www.nlihc.org
• www.nhtf.org