Enterprise Point of Contact:
Diane YentelDirector, Public Policy and Government Affairs
Last Updated: December 13, 2011
Issue Background: National Housing Trust Fund
The National Housing Trust Fund (NHTF; also referred to as the Affordable Housing Trust Fund and the Housing Trust Fund) was authorized as part of the Housing and Economic Recovery Act of 2008 (HERA; Public Law 110-289) to increase affordable housing options for the lowest income households. NHTF grants are intended to help finance the production, preservation, rehabilitation or operation of rental housing for very- and extremely-low income households, including the homeless. A maximum of 10 percent of funds may also be used for homeownership activities.The NHTF will be administered by the U.S. Department of Housing and Urban Development (HUD). On October 29, 2010, HUD published the proposed rule for the NHTF. As proposed, HUD will distribute block grants to states based on a formula that measures the need for affordable homes for very- and extremely-low income individuals and families. The program is intended to receive at least one dedicated source of funding in lieu of annual appropriations. However, the NHTF has yet to receive an initial capitalization or a permanent source of revenue. The original source of dedicated funding was to be contributions from Fannie Mae and Freddie Mac, but those disbursements were suspended when the agencies entered conservatorship.
Current Policy State
The Obama Administration’s fiscal year (FY) 2012 budget requested $1 billion in mandatory spending for the initial capitalization of the NHTF. The FY 2011 budget requested the same amount of discretionary funding for this purpose, but the program was never capitalized. As of December 2011, the program has yet to receive funding for its initial capitalization and a permanent source of revenue has not been identified. Any new funding source would have to be offset by a corresponding amount in budget cuts, per new House rules for the 112th Congress. Legislation has been introduced in both chambers during the current Congress to provide $1 billion in initial funding from the sale of warrants under HERA. These warrants recoup revenue spent by the federal government to stabilize the banking system under the Troubled Asset Relief Program (TARP).Legislative Priorities
Enterprise considers the capitalization and implementation of the National Housing Trust Fund a high priority and supports the efforts to address the housing needs of the lowest-income Americans.Publications and Resources
NHTF-Related Legislative Proposals (112th Congress)
Enterprise Resources
Housing Trust Fund Proposed Rule
On December 21, 2010 Enterprise Vice President, Public Policy and Government Relations Adrienne Quinn submitted a comment letter in response to HUD’s Housing Trust Fund Proposed Rule (Federal Register Notice FR-5246-P-02).
- Enterprise Public Comment on Housing Trust Fund Proposed Rule
- Enterprise Summary of the Housing Trust Fund Proposed Rule