National Housing Trust Fund

Program Summary and Purpose:

A letter from the National Trust Fund sent to every member of Congress dated this past June, states: “In the United States today, there are only 37 rental homes available and affordable for every 100 households with incomes below 30% of their area median. A scarcity of housing that the poorest families can afford is the principal cause of homelessness in the United States.”

In signing the Housing and Economic Recovery Act in July 2008, George W. Bush created the National Housing Trust Fund. Designed to fuel the construction of at least 1.5 million rental homes, as well as create more jobs in the floundering economy, the National Housing Trust Fund continues to work to help low income Americans. The fund is allocated to each state based on a formula developed by HUD. According to an allocation plan developed by the state, the fund is distributed across eligible housing agencies. The NHTF dictates that 90% of the program’s funds be used for the production and preservation of affordable, rental housing. The other 10% of the fund is used for first-time home owner assistance.

Current Status:

In the FY11 budget, Obama suggested that $1 billion be allocated to the NHTF. The house has passed legislation to continue funding for the NHTF, but the senate has yet to garner the 60 votes necessary for the passage of the bill. To successfully pass the bill, the senate must persuade Senators Ben Nelson (D-NE), Joseph Lieberman (I-CT), or other moderate Republicans. The senate is expected to take up the bill again after the July 4th recess.

What Advocates Need to Know:

Advocacy is needed to push the bill through into law. In fighting for support for the NHTF in the community, advocates should point to the shortage of rental housing in the community as well as the potential jobs created by the NHTF.

For More Information:

National Low Income Housing Coalition. 202-662-1530.

National Housing Trust Fund Campaign. 202-662-1530.