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

2. 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

3. 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. 

4. 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

5. 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)

6. 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

7. 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

8. 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)

9. 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

10. 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

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