The National Housing Trust Fund (NHTF) is a new program created, but not funded, in 2008 to create or preserve mostly rental housing for extremely low income households.
At least 90% of funds are for rental housing, with 75% of rental funding for extremely low income households.
Proposed $1 billion in funding would bring $14 million to Minnesota.
National Housing Trust Fund authorized in 2008 Housing and Economic Recovery Act (HERA):
- Uses dedicated funding.
- Fannie Mae/Freddie Mac was intended to capitalize program, but now new funding source(s) required after GSEs placed in receivership.
- NLIHC goal for NHTF is to finance 1.5 million affordable units over 10 years.
Federal:
- Advocates want $5 billion per year for 10 years.
- Obama administration's 2010 and 2011 budgets both include $1 billion for NHTF, but source is still not specified.
- Despite efforts by advocates to secure funding, the American Workers, State, and Business Relief Act of 2010 passed in the Senate without funds for NHTF. Advocates will continue to look for a funding vehicle for NHTF.
- On December 16, 2009, the House passed the “Jobs for Main Street Act, 2010,” (H.R. 2847) a jobs bill that includes $1 billion to capitalize the NHTF and $65 million for project-based vouchers in conjunction with NHTF dollars. However, a smaller Senate jobs bill, passed on Feb. 24, does not include NHTF funding. It remains to be seen if the House and Senate bill will be reconciled and if the NHTF provisions will be included.
State:
- MnFHAC supports funding NHTF at $5 billion/year to build, preserve, and rehab 1.5 million units nationally over 10 years.
Michael Dahl, HOME Line, is a contributor to MHP's coverage of this issue.
Updated April 12, 2010.