It is the highest amount ever disbursed to affordable housing efforts, the FHFA says
The Federal Housing Finance Agency has allotted more than a billion dollars for affordable housing programs – the largest amount ever provided to these programs from Fannie Mae and Freddie Mac.
FHFA acting director Sandra Thompson said Monday that the GSEs will allocate $1.138 billion to the Housing Trust Fund and Capital Magnet Fund for the construction and preservation of affordable housing across the country.
The Housing Trust Fund, overseen by the Department of Housing and Urban Development, will receive $740 million, a $29 million increase from the previous year. The funding will be disbursed to states and state-designated entities for the production or preservation of affordable housing through the acquisition, new construction, reconstruction, and/or rehabilitation of non-luxury housing.
Meanwhile, the Capital Magnet Fund, overseen by the Department of the Treasury, will get $398 million, a $15 million increase from 2021. It competitively awards money to finance affordable housing activities, related economic development activities, and community service facilities.
“Addressing our nation’s affordable housing crisis is critical to FHFA’s mission,” Thompson said. “Today’s announcement of record funding for additional housing production will help increase access to affordable, sustainable housing options.”