Federal Housing Finance Agency (FHFA) Director Mel Watt has sent a letter to Fannie Mae and Freddie Mac instructing them to begin allocating funds to the National Housing Trust Fund (NHTF) and the Capital Magnet Fund. The NHTF will provide block grant funding to states, primarily to preserve, rehabilitate or operate rental housing for extremely low and very low income households.
The NHTF was established eight years ago under the 2008 Housing and Economic Recovery Act (HERA), which also detailed the requirements for Fannie Mae and Freddie Mac to allocate funds to the NHTF and Capital Magnet Fund. However, HERA also allowed for these payments to be suspended when Fannie Mae and Freddie Mac went into conservatorship as a result of the housing crisis.
With both organizations now considered more financially sound, Director Watt has directed them to start setting aside and allocating funds in the accordance with the requirements detailed in HERA.
Click here to visit the website of the National Low Income Housing Coalition more information about the NHTF and Director Watt’s letter.
Click here to read the notice on the FHFA’s website and access the letters to Fannie Mae and Freddie Mac.