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EQUITY Tip of the Month
National Housing Trust Fund: A Potential New Source of Affordable Housing Funds
The National Affordable Housing Trust Fund Act was introduced in the House on June 28, 2007 and promises to provide for the construction, rehabilitation, and preservation of decent, safe, and affordable housing for low-income families. The bill, introduced by Rep. Barney Frank (D-MA), Chairman of the House Financial Services Committee, reserves approximately $500 million per year from Fannie Mae and Freddie Mac profits as a dedicated source of funding for the establishment of a national housing trust fund.
It is the goal of the legislation that these funds will be used for the production, preservation and rehabilitation of 1.5 million affordable homes in 10 years. At least 75% of the funds will be for housing for households that are extremely low income, earning less than 30% of an area’s median income.
“The introduction of the National Affordable Housing Trust Fund Act of 2007 is a signal of hope for the millions of families of low wage earners and elderly or disabled people on fixed incomes who cannot afford even the most modest rental homes,” Sheila Crowley, President of the National Low Income Housing Coalition, said. “With this bill, new resources will be dedicated to expand the supply of rental homes that the lowest income people can afford.”
The need for a National Housing Trust Fund is well documented. Nationwide, there are only six million homes renting at prices affordable to the nine million extremely low-income renter households - a shortage of nearly 3 million homes. Not a single Congressional district has enough rental housing affordable and available to extremely low-income families.
Housing trust funds already have been established by more than 600 state and local governments and have proven to be a successful approach to funding affordable housing programs. “Housing is the foundation of thriving communities, and this bill reflects the valuable experience of states and localities that have committed dedicated sources of revenue to address their housing problems,” Crowley said.
H.R. 2895 National Housing Trust Fund:
Last Action: Jul 19, 2007: Committee Hearings Held.
The National Affordable Housing Trust Fund Act was introduced in the House on June 28, 2007 and promises to provide for the construction, rehabilitation, and preservation of decent, safe, and affordable housing for low-income families. The bill, introduced by Rep. Barney Frank (D-MA), Chairman of the House Financial Services Committee, reserves approximately $500 million per year from Fannie Mae and Freddie Mac profits as a dedicated source of funding for the establishment of a national housing trust fund.
It is the goal of the legislation that these funds will be used for the production, preservation and rehabilitation of 1.5 million affordable homes in 10 years. At least 75% of the funds will be for housing for households that are extremely low income, earning less than 30% of an area’s median income.
“The introduction of the National Affordable Housing Trust Fund Act of 2007 is a signal of hope for the millions of families of low wage earners and elderly or disabled people on fixed incomes who cannot afford even the most modest rental homes,” Sheila Crowley, President of the National Low Income Housing Coalition, said. “With this bill, new resources will be dedicated to expand the supply of rental homes that the lowest income people can afford.”
The need for a National Housing Trust Fund is well documented. Nationwide, there are only six million homes renting at prices affordable to the nine million extremely low-income renter households - a shortage of nearly 3 million homes. Not a single Congressional district has enough rental housing affordable and available to extremely low-income families.
Housing trust funds already have been established by more than 600 state and local governments and have proven to be a successful approach to funding affordable housing programs. “Housing is the foundation of thriving communities, and this bill reflects the valuable experience of states and localities that have committed dedicated sources of revenue to address their housing problems,” Crowley said.
H.R. 2895 National Housing Trust Fund:
Last Action: Jul 19, 2007: Committee Hearings Held.