On April 6, the U.S. Department of Housing and Urban Development (HUD) announced a nearly $700 million allocation through the Housing Trust Fund (HTF) for affordable housing. This is a significant increase from last year’s allocation of $322,564,267.66 and is expected to produce more than 5,400 additional affordable units, according to HUD.
“We are excited to announce this historic funding allocation, which will enable states to expand and preserve affordable housing for our neighbors who need our support the most,” said HUD Secretary Marcia Fudge in a statement released by the Department.
The fund’s statute dictates that it may be used for the acquisition, new construction, reconstruction and/or rehabilitation of affordable housing, and that a state must use at least 80 percent of each annual grant for multifamily-specific projects. As previously reported, Fannie Mae and Freddie Mac (the Enterprises) are responsible for capitalizing the HTF and the Capital Magnet Fund with a total contribution of $1 billion this year.
Our nation was facing a housing affordability challenge long before the onset of the COVID-19 financial crisis. However, the current economic situation has only exacerbated and revealed the need for an increased investment in housing. To keep up with demand, our nation needs to build an additional 328,000 rental units per year through 2030. The HTF is a critical tool to further this goal and, therefore, support the creation and rehabilitation of housing stock for the most vulnerable population. NMHC will continue to work with HUD and the Enterprises on our shared goal of creating more affordable housing.
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