HUD Announces Housing Trust Fund Awards - May 5, 2016

On May 5, 2016, HUD published a notice in the Federal Register announcing the fiscal year 2016 Funding Awards for the Housing Trust Fund HTF). HUD had originally estimated that $120 million would be allocated in 2016, but this notice awards $173,591,160. In 2008, Congress authorized the HTF with the stated purpose of (1) Increasing and preserving the supply of rental housing for extremely low-income families with incomes between 0 and 30% of area median income and very low-income families with incomes between 30 and 50% of area median income, including homeless families, and (2) increasing homeownership for extremely low-income and very low-income families. Fannie Mae and Freddie Mac fund the HTF with an affordable housing set-aside. The awards range from a low of $12,321 for American Samoa to a high of $10,128,143 for California. Most states will receive $3 million. Affordable housing developers should contact their State Housing Finance Agency for information on how the fund will be administered.