On February 28, Federal Housing Finance Agency (FHFA) Acting Director Sandra L. Thompson announced that the Housing Trust Fund and Capital Magnet Fund will receive a total of $1.138 billion for affordable housing initiatives from Fannie Mae and Freddie Mac (the Enterprises).
This annual support of affordable housing programs from the Enterprises was first established in 2008 when they were placed into conservatorship and began receiving funds in 2016.
“The Housing Trust Fund and Capital Magnet Fund are critical housing affordability tools,” said National Multifamily Housing Council (NMHC) Senior Vice President of Government Affairs, Cindy Chetti. “Given that housing demand has never been greater, these resources will prove invaluable over the coming year.”
“As the nation’s housing affordability crisis continues to impact far too many Americans, these critical investments will make a tangible difference over the coming year,” said Greg Brown, Senior Vice President of Government Affairs for the National Apartment Association (NAA). “These increased investments parallel our collective advocacy efforts as we work to responsibly address housing affordability.”
The Housing Trust Fund is disbursed on a grant basis with allowable uses limited to supporting activities that build, preserve, repair and operate rental housing for low-and very-low-income households, with some resources set aside to aid in homeownership activities. The Capital Magnet Fund offers competitively awarded grants to help finance affordable housing solutions and community revitalization efforts.
The Housing Trust Fund will receive $740 million, a $29 million increase from the previous year.
The Capital Magnet Fund will receive $398 million, a $15 million increase from the previous year.
Click here to access FHFA’s full announcement.
