Today, it was announced by FHFA [1] Acting Director Sandra L. Thompson that the Housing Trust Fund and Capital Magnet Fund will receive a total of $1.138 billion for affordable housing initiatives from Fannie Mae and Freddie Mac [2] (the Enterprises). This is the largest amount ever provided to these programs from the Enterprises. This number is up from the authorized disbursement of $1.09 billion in March 2021 [3].
"Addressing our nation's affordable housing crisis is critical to FHFA's mission," said FHFA Acting Director Sandra L. Thompson. "Today's announcement of record funding for additional housing production will help increase access to affordable, sustainable housing options."
The Housing Trust Fund, overseen by the U.S. Department of Housing and Urban Development, allocates funding annually to states and state-designated entities for the production or preservation of affordable housing through the acquisition, new construction, reconstruction, and/or rehabilitation of non-luxury housing. This program will receive $740 million, a $29 million increase from the previous year.
Compared to last year's provided funds, numbers are up 4% from the $711 million that was disbursed to the U.S. Department of Housing and Urban Development (HUD) for the Housing Trust Fund.
The Capital Magnet Fund, overseen by the U.S. Department of the Treasury, competitively awards money to finance affordable housing activities, as well as related economic development activities and community service facilities. This program will receive $398 million, a $15 million increase from the previous year. Numbers have also increased nearly 4% from the $383 million disbursed for 2019.
This news comes shortly after the Federal Housing Finance Agency (FHFA) released a draft of its strategic plan [4] for 2022-2026 and is requesting input on the plan from the general public.