On April 4, the U.S. Department of Housing and Urban Development announced that $174 million will be made available through the National Housing Trust Fund.
The fund will complement existing federal, state and local programs to provide low and very low-income households, including families who are homeless, with safe, affordable and sanitary housing.
The fund is capitalized through funds from Freddie Mac and Fannie Mae, and it will be administered through HUD.
“This is an exciting new tool to help states across the country to produce more critically needed affordable housing,” said HUD Secretary Julián Castro in a press release. “The National Housing Trust Fund will play an important role in creating new opportunities for those who are most in need to secure a safe, decent and affordable home they can call their own.”
Grantees of the fund must use 80 percent of each annual grant for rentals, 10 percent for homeownership housing and 10 percent for reasonable administration and planning costs.
Furthermore, the fund may also be used for “the production and preservation of affordable housing through acquisition, new construction, reconstruction and/or rehabilitation of non-luxury housing with suitable amenities.”
Eligible activities and expenses include:
- Real property acquisition
- Site improvements and development hard costs
- Related soft costs
- Financing costs
- Relocation assistance
- Operating cost assistance for rental housing (up to 30 percent of each grant)
- Reasonable administrative and planning costs
The grants will become available summer 2016.