HUD Allocates $4.5M Toward Fla. Home Construction

For the first time, the U.S. Department of Housing and Urban Development (HUD) allocated $173.6 million through the nation’s Housing Trust Fund. Florida will receive $4.6 million.

WASHINGTON – May 6, 22016 – For the first time, the U.S. Department of Housing and Urban Development (HUD) allocated $173.6 million through the nation's Housing Trust Fund. Florida will receive $4.6 million.

The Housing Trust Fund is a new affordable housing production program that HUD says will complement existing federal, state and local efforts to increase and preserve a supply of decent, safe and sanitary affordable housing for extremely low- and very low-income households, including families facing homelessness.

"A healthy housing market is key to vibrant communities and future economic growth, and these federal funds will help states expand the supply of affordable homes and strengthen our communities," says Sen. Jack Reed of Rhode Island and author of the 2008 law establishing the National Housing Trust Fund.

The Housing and Economic Recovery Act of 2008 (HERA) authorized the Housing Trust Fund, but it took eight years to capitalize it through contributions made by Fannie Mae and Freddie Mac. In December 2014, the Federal Housing Finance Agency (FHFA) directed these Fannie and Freddie to begin setting aside and allocating funds. In January 2015, HUD issued interim rules to guide states on how to implement their Housing Trust Funds.

By law, each state is allocated a minimum of $3 million. State affordable housing planners will use the funds for eligible activities:

• Real property acquisition
• Site improvements and development hard costs
• Related soft costs
• Demolition
• Financing costs
• Relocation assistance
• Operating cost assistance for rental housing (up to 30% of each grant)
• Reasonable administrative and planning costs

An overview of the National Housing Trust Fund is explained in an online video.

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