The U.S. Department of Housing and Urban Development (HUD) recently announced that it is allocating $382 million through the nation’s Housing Trust Fund (HTF) to help produce affordable housing. This program aims to increase and preserve the supply of decent, safe, and sanitary affordable housing for extremely low- and very low-income households, including families experiencing homelessness.

Each state is allocated a minimum of $3 million through the formula-based program. State affordable housing planners will use these funds for eligible activities, including real property acquisition, site improvements, development hard costs, related soft costs, demolition, financing costs, relocation assistance, operating cost assistance for rental housing, and reasonable administrative and planning costs. You can view a full list of each state’s allocation below.

The Housing Trust Fund is capitalized through contributions made by Fannie Mae and Freddie Mac. The Federal Housing Finance Agency (FHFA) directed these Government Sponsored Enterprises (GSEs) to begin setting aside and allocating funds to the Housing Trust Fund in December 2014.

The allocation of funds to the Housing Trust Fund helps to strengthen and broaden the Federal housing safety net for people in need by increasing the production of and access to affordable housing for the nation’s most vulnerable populations. One hundred percent of the funds must be used for extremely low-income families, ensuring that the priority of this program is helping those with the greatest needs.

The COVID-19 pandemic has brought the importance of safe and affordable housing to the forefront, as more people have lost their homes due to financial hardship. This allocation of funds to the Housing Trust Fund is a step toward addressing the housing affordability crisis in the United States.

HUD Secretary Marcia L. Fudge stated that the Biden-Harris Administration is committed to improving the nation’s housing affordability crisis. The Housing Trust Fund provides communities with the resources they need to produce more safe, sustainable, affordable housing.

Overall, the allocation of $382 million through the Housing Trust Fund is a positive step towards improving housing affordability in the United States. By investing in affordable housing production programs, the government can help address the housing crisis and provide vulnerable populations with safe and sustainable housing options.