Leveraging the Credit with the Housing Trust Fund NCSHA Housing Credit Connect June 22, 2017

Housing Trust Fund (HTF) Overview HTF is a non-appropriated source of funding for affordable housing production that complements existing Federal, State, and local housing programs HTF Goal is to increase and preserve the supply of decent, safe, and affordable housing for extremely low-income (ELI) and very low-income (VLI) households, with primary attention to rental housing

HTF Overview Authorized by Housing and Economic Recovery Act (HERA) on July 30, 2008 GSEs required to reserve 4.2 basis points of each dollar of unpaid principal balance of total new business purchases for HTF and Capital Magnet Fund Federal Housing Finance Agency suspended contributions due to financial condition of GSEs until 2015. 

Grantees / Recipients / Formula HTF funds allocated by formula to States including D.C., Puerto Rico, & insular areas $3 million minimum allocation Eligible Recipients - non-profit and for-profit developers with demonstrated development experience and capacity. State may subgrant funds to units of general local government or State agencies

HTF Program Features HTF beneficiaries - incomes less than the greater of ELI limit (below 30% of AMI) or Federal poverty line Up to 10% may be spent on administrative and planning costs At least 80% must be spent on rental housing Up to 10% may be spent for homeownership (direct assistance or rehab/construction)

HTF Rental Project Requirements Regulation establishes flat rents maximum rent = greater of 30% of income of a ELI household or 30% of federal poverty line, except for projects with project-based rental assistance/ vouchers 30 year minimum period of affordability for rental

HTF Program Funding FY 2016: $173,591,160 35 States/DC received $ 3 million minimum FY 2017: $219,163,373 27 States/DC received $3 million minimum

FY 2016 HTF Status Allocation Plans Approved: 51 Grants Obligated: 42 Not approved: 2 Declined: 3 Grants Obligated: 42 States without approved plans: Arkansas Maryland Wyoming (kind of)

FY 2016 Plans Most States funding recipients directly Most States using HTF for rental housing only Several States opted to not use HTF for rehab. Few States mentioned operating cost assistance in their plans Most States married project selection to existing project selection process One state funded one project with its entire allocation

FY 2017 HTF Status FY 2017 HTF Allocation Plan Notice HUD Notice CPD 17-05 Plans due by 8/16/17 (waivers possible) HUD expects few changes to FY 2017 plans FY 2017 HTF allocations announced June 14, 2017 – available on HUD.gov Required Federal Register Notice will be published

Leveraging the Credit with the Housing Trust Fund NCSHA Housing Credit Connect June 22, 2017