National Housing Trust Fund
regulations and distribution formula
to be released by July 30th
HR 3069 proposes new funding source
Resources
To review frequently asked questions on the NHTF prepared by the National Low Income Housing Coalition click here.
For more information on the NHTF click here.
For more information on HR 3069 click here.
HUD will make the distribution formula available by July 30, 2009, at which point jurisdictions will know how much to expect from the $1 billion.
Our friends at the National Low Income Housing Coalition (NLIHC) were the leaders of this campaign. The following information is from their most recent update.
While the statute creating the NHTF on July 30, 2008 also designated an initial dedicated source of funding for the NHTF to come from a very small portion of the unpaid principle balance of new business purchases made by Fannie Mae and Freddie Mac, those two institutions have since hit on financial hard times.
President Obama’s proposed budget for FY2010 included a one-time $1 billion to capitalize the NHTF. It is important to keep in mind that the Administration is not seeking a HUD appropriation for this $1 billion, and the NHTF campaign will stand by its firm commitment to ensure the NHTF does not compete with other HUD programs for funding.
Because the Administration proposed the $1 billion to be mandatory, once approved by Congressional authorizing committees (anticipated to take place before Congress recesses in November or December) it would be available automatically – without going through the appropriations process.
Barney Frank, Chairman of the House Financial Services Committee has identified a new source of funds that is within the purview of his committee that can be used for this purpose. He has introduced H.R. 3068, the “TARP for Main Street Act of 2009″ which would direct $1 billion to the NHTF.
TARP (the Troubled Asset Relief Program) was created in October 2008 as part of the Emergency Economic Stabilization Act to make billions of federal dollars available to bail out struggling financial institutions. Some of those transactions are now producing dividends to the federal treasury. Chairman Frank is proposing that $1 billion of the dividends paid by financial institutions assisted by TARP be used as initial capitalization for the NHTF.
In addition to the NHTF, the “TARP for Main Street Act” provides an additional $1.5 billion from TARP dividends for the Neighborhood Stabilization Program (NSP), $2 billion in TARP funds to the Emergency Homeowner Relief Fund at HUD, and $2 billion in TARP funds for a program that the HUD Secretary is directed to develop to prevent the loss of multi-family housing that is in default or foreclosure. A hearing on the bill is expected on July 9.
