For the first time in decades, a new Federal housing program will expand the supply of affordable homes for people with extremely low incomes.
On December 11, Federal Housing Finance Agency Director Mel Watt lifted the suspension on Fannie Mae and Freddie Mac's obligation to fund the National Housing Trust Fund and the Capital Magnet Fund. Congress created these two funds in 2008 to expand the housing supply for the lowest income and most vulnerable people in our country, but funding was suspended as a result of the financial crisis. Fannie Mae and Freddie Mac are now required to set aside a portion of each loan they purchase from lenders, which will provide an estimated $300 million to $700 million a year for the funds.
NACEDA commends Mel Watt on historic decision. We thank the National Low Income Housing Coalition (NLIHC) for leading the advocacy campaign to establish the National Housing Trust Fund and secure a sustainable funding source. I was proud to serve as Co-Chair of the United for Homes Steering Committee that played a supportive role to NLIHC in this long-term advocacy effort.