HUD ISSUES RULE TO GUIDE HOUSING TRUST FUND IMPLEMENTATION

HUD ISSUES RULE TO GUIDE HOUSING TRUST FUND IMPLEMENTATION

WASHINGTON, D.C. – February 2, 2015 – (RealEstateRama) — The U.S. Department of Housing and Urban Development (HUD) published an interim program rule (FR-5246-I-03) rule to the Federal Register today providing guidance to state and local entities for the implementation of the National Housing Trust Fund (HTF). The HTF is a new affordable housing production program that will complement existing Federal, state and local efforts to increase and preserve the supply of decent, safe, and clean affordable housing for extremely low- and very low-income households, including homeless families.

In December 2014, the Federal Housing Finance Agency (FHFA) directed Fannie Mae and Freddie Mac to begin setting aside and allocating funds to the Housing Trust Fund pursuant to the Housing and Economic Recovery Act of 2008 (HERA).

“Affordable housing is about opportunity. Today’s action is the latest step toward important progress for the American people,” said HUD Secretary Julián Castro. “Once fully implemented, the Housing Trust Fund will help folks across the nation secure a decent place to call home. We look forward to working closely with our partners across the nation to implement this critical resource to expand the circle of opportunity for current and future generations of Americans.”

States and state-designated entities are eligible grantees for the HTF. Annual formula grants will be made, of which at least 80 percent must be used for rental housing; up to 10 percent for homeownership; and up to 10 percent for the grantee’s reasonable administrative and planning costs.

During 2015, States will begin developing their HTF Allocation Plans and solicit input from their constituents and submit these plans to HUD along with their 2016 Annual Acton Plans. HUD anticipates that grantees will receive their HTF allocations by summer 2016.

HTF funds may be used for the production or preservation of affordable housing through the acquisition, new construction, reconstruction, and/or rehabilitation of non-luxury housing with suitable amenities. All HTF-assisted units will be required to have a minimum affordability period of 30 years.
•Eligible activities and expenses include:
•Real property acquisition
•Site improvements and development hard costs
•Related soft costs
•Demolition
•Financing costs
•Relocation assistance
•Operating cost assistance for rental housing

HUD is developing guidance and training to assist grantees and program partners in designing and implementing their programs. Read more about the Housing Trust Fund.

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HUD’s mission is to create strong, sustainable, inclusive communities and quality affordable homes for all.
HUD is working to strengthen the housing market to bolster the economy and protect consumers; meet the
need for quality affordable rental homes: utilize housing as a platform for improving quality of life; build
inclusive and sustainable communities free from discrimination; and transform the way HUD does business.
More information about HUD and its programs is available on the Internet at www.hud.gov and
http://espanol.hud.gov. You can also follow HUD on twitter @HUDGov, on facebook at
www.facebook.com/HUD, or sign up for news alerts on HUD’s Email List.

Cameron French
(202) 708-0685

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U.S. Department of Housing and Urban Development (HUD) is the nation’s housing agency committed to increasing homeownership, particularly among minorities; creating affordable housing opportunities for low-income Americans; and supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development, and enforces the nation’s fair housing laws.

Contact:

Brian Sullivan
(202) 708-0685

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