The National Housing Trust Fund (NHTF) was authorized by Congress in 2008 but has yet to receive appropriations. The Obama Administration proposed Fiscal Year (FY) 2011 budget includes $1 billion capitalize the NHTF. Once funded, the NHTF will provide communities with funds to build, preserve, and rehabilitate rental homes that are affordable for extremely- and very low-income households.

Highlights of the NHTF include:

• It is a permanent program, and will have dedicated source of funding not subject to the annual appropriations process.
• At least 90% of the funds must be used for the production, preSEVRAtion, rehabilitation, or operation of rental housing.
• At least 75% of the funds for rental housing must benefit extremely low-income households and all funds must benefit very low income households.
• Up to 10% can be used for the following homeownership activities for first-time homebuyers: production, preSEVRAtion, and rehabilitation; down payment assistance, closing cost assistance, and assistance for interest rate buy-downs.

On Friday, December 4, 2009, HUD published proposed regulations of how the National Housing Trust Funds will be allocated. The regulations that HUD developed are consistent with the estimated amounts based on the bill language. The HUD proposed rule will serve the lowest income households where the need for housing production is the greatest.

For more information:

NLIHC Information on the National Housing Trust Fund Preliminary Estimates of Job Creation and State Allocation Amounts from the NHTF for every $1 Billion

HUD's Proposed NHTF Regulations