http://goo.gl/aixht9
Part of the Housing and Economic Recovery Act, the National Housing Trust Fund (NHTF) became law on July 30, 2008. The NHTF is a federal program for collecting and distributing dedicated funds as a block grant to the states, District of Columbia, Puerto Rico and the U.S. territories.The purpose of the NHTF is to increase and preserve the supply of housing, principally rental housing for extremely low income households.
The NHTF was to receive .042% of its start up funds from Fannie Mae and Freddie Mac. However, funding was suspended when the 2008 banking crisis hit and was not lifted until January 1, 2015. On December 11, 2014, FHFA Director Mel Watt sent letters to Fannie Mae and Freddie Mac informing them he was terminating the temporary suspension of the allocation the companies are to make to the NHTF. The companies were directed to begin setting aside the required funds in FY2015 and each year thereafter.
In accordance with the NHTF formula, funds will be distributed to states based on the following:
- Shortage of rental properties affordable and available to extremely low income (ELI) and very low income (VLI) households
- ELI is considered to be less than 30% of area median income
- VLI is considered to be between 30% and 50% of area median income
- Number of ELI and VLI renter households paying more than 50% of their income for rent and utilities
- Priority is given to ELI households