National Housing Trust Fund

1
National Housing Trust Fund

• Creating a significant and dedicated source of
  funding

2
Overview

• Create new, stable source of revenue for
  development of affordable housing
• Target new resources to extremely low income
  households

3
History

• Long history of legislative efforts
• HR 1461 passed House in October 2005 (included
  AHF--5 of Fannie Mae and Freddie Mac after-tax
  profits)
• Bill included last-minute provision restricting
  use of funds for organizations involved in voter
  engagement
• Senate stalled on issues surrounding GSE reform

4
Eligible Activities

• Production of new housing
• Preservation of existing federally-assisted
  housing
• Rehabilitation of existing private market
  affordable housing
• Primarily for rental housing (up to 25 for
  homeownership)

Source National Low Income Housing Coalition,
2006 Advocates' Guide
5
Income Targeting

• 45 for ELI Households
• (Up to 30 of state or area median income)
• 30 for households with income equal to
  minimum-wage FTE, or less
• 25 for low-income households in low-income
  neighborhoods only
• (Up to 80 of state or area median income)
• 50-year term of affordability

Source National Low Income Housing Coalition,
2006 Advocates' Guide
6
Distribution of Funds
State
Localities
Rural areas
7
Match

• 1 State, local, or private revenue? 2 Trust
  Fund assistance
• 1 locally controlled federal money (HOME, CDBG,
  LIHTC, etc)? 1 Trust Fund assistance
• Revenue committed to provide services qualifies
  as matching funds

Source National Low Income Housing Coalition,
2006 Advocates' Guide
8
Funding Source Options

• Many possibilities, GSE-related has been most
  promising
• 5 pre-tax profits? 1 billion per year
• Post-election, renewed opportunity for new
  funding sources

9
Action Steps

• Take part in Minnesota Federal Housing Action
  Campaign calls
• Sign on to National Housing Trust Fund campaign
  (www.nhtf.org)
• Join National Low Income Housing Coalition
  (www.nlihc.org)