December 11th, 2014 marked an exciting day for affordable housing as the National Housing Trust Fund (NHTF) and The Capital Magnet Fund (CMF) will finally begin receiving funds from Fannie Mae and Freddie Mac. Mel Watt, the Director of the Federal Housing Finance Agency terminated a temporary suspension of the allocations from these companies into the funds, a suspension that has been in place since the Great Recession of 2008 when regulators declared that Fannie Mae and Freddie Mac’s financial conditions prevented them from making payments.
The NHTF was established as a provision of the Housing and Economic Recovery act of 2008. It is designed to increase and preserve the supply of rental housing and increase homeownership for extremely low and very low-income households, including homeless households.
Originally, funding for the NHTF was to be supplied by Fannie Mae and Freddie Mac and so currently sits empty. With the lifting of the suspension, the amount of funding for 2015 is projected to be between $300 and $500 million to be split between the NHTF and the CMF.
Many groups are working on proper implementation of the NHTF. This lifting of the suspension comes at a time where we America has more than 600,000 homeless children and adults and more than 7 million households that more than their income on housing. The NHTF will help immensely as we work together to help provide the opportunities so that everyone can live in a safe quality home and work towards having the type of future we all dream about.