LATEST NEWS:

For frequent updates and more in-depth information on the National Housing Trust Fund, please visit the National Housing Trust Fund Campaign website.

In July, 2011, a bill introduced to the House Financial Services Committee by Representative Ed Royce (R-CA) calling for the abolition of the National Housing Trust Fund, H.R. 2441 passed the committee. Next steps for this bill remain uncertain at this time.

In late March, 2011, Sen. Jack Reed (D-RI) introduced S. 489, “The Preserving Homes and Communities Act of 2011.” In April, 2011, Rep. Elijah Cummings (D-MD) introduced the House companion bill, H.R. 1477. The bill would provide the $1 billion needed for capitalization of the NHTF from profits made from the sale of warrants that the federal government received from banks that benefited from TARP bailouts.

The $1 billion needed to capitalize the Housing Trust Fund would be mandatory spending, which means that Congress would have to pass legislation separate from the regular appropriations process. Multiple attempts in 2010 and 2011 to fund the Trust Fund failed.

About the Trust Fund:
The National Housing Trust Fund would use funds dedicated annually from Fannie Mae and Freddie Mac and would not require annual appropriations like other federal housing programs. However, because of Fannie Mae and Freddie Mac's financial difficulties, payments to the Trust Fund have been suspended and advocates are seeking alternative funding sources. Advocates of the Trust Fund aim to use Trust Fund resources to create 1.5 million units of affordable housing within ten years.

At least 90 percent of Trust Fund resources would be for rental housing, including the production, preservation, and rehabilitation of rental housing, or for operating costs. At least 75 percent of the amount used for rental housing would have to be for extremely low income households (30 percent or less of area median income) or families with incomes at or below the poverty line. Up to 25 percent could be used for the benefit of very low-income families (30 to 50 percent of area median income). Up to 10 percent of Trust Fund resources could be used for homeownership activities for first-time homebuyers. Funding would be distributed to states through a formula that HUD has established.