For the first time ever, the U.S. Department of Housing and Urban Development (HUD) today allocated nearly $174 million through the nation’s Housing Trust Fund.  The Housing Trust Fund aims to complement existing Federal, state and local efforts 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.

By law, each state is allocated a minimum of $3 million.  State affordable housing planners will use these funds for the following 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
FY 2016 Housing Trust Fund Allocation Amounts
STATE FY 2016 Allocation
Alabama $            3,000,000
Alaska $            3,000,000
Arizona $            3,000,000
Arkansas $            3,000,000
California $          10,128,143
Colorado $            3,000,000
Connecticut $            3,000,000
Delaware $            3,000,000
District of Columbia $            3,000,000
Florida $            4,598,821
Georgia $            3,314,612
Hawaii $            3,000,000
Idaho $            3,000,000
Illinois $            4,302,012
Indiana $            3,000,000
Iowa $            3,000,000
Kansas $            3,000,000
Kentucky $            3,000,000
Louisiana $            3,000,000
Maine $            3,000,000
Maryland $            3,000,000
Massachusetts $            3,419,569
Michigan $            3,522,622
Minnesota $            3,000,000
Mississippi $            3,000,000
Missouri $            3,000,000
Montana $            3,000,000
Nebraska $            3,000,000
Nevada $            3,000,000
New Hampshire $            3,000,000
New Jersey $            3,733,566
New Mexico $            3,000,000
New York $            7,013,963
North Carolina $            3,280,235
North Dakota $            3,000,000
Ohio $            3,740,578
Oklahoma $            3,000,000
Oregon $            3,000,000
Pennsylvania $            3,862,285
Rhode Island $            3,000,000
South Carolina $            3,000,000
South Dakota $            3,000,000
Tennessee $            3,000,000
Texas $            4,778,364
Utah $            3,000,000
Vermont $            3,000,000
Virginia $            3,139,830
Washington $            3,243,721
West Virginia $            3,000,000
Wisconsin $            3,004,558
Wyoming $            3,000,000
American Samoa $                 12,321
Guam $                 77,609
N. Mariana Islands $                 35,735
Puerto Rico $               326,054
Virgin Islands $                 56,562
TOTAL  $        173,591,160

“Today, we offer another tool to help states confront a growing affordable rental housing crisis in this country,” said HUD Secretary Julián Castro.  “The Housing Trust Fund will be an enduring resource designed to producing more housing that is affordable to our most vulnerable neighbors.”

“In today’s housing market, many Americans who work hard still can’t afford their rents.  Affordable housing helps workers live closer to their jobs and spend more time with their families.  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,” said Senator Jack Reed (Rhode Island), who wrote the 2008 law establishing the National Housing Trust Fund.  “I commend HUD for making these funds available and helping states take a tailored, cost-effective approach to increasing the supply of affordable housing.”

Diane Yentel, President and Chief Executive Officer of the National Low Income Housing Coalition, added, “Today is a historic day for millions of Americans who struggle to find affordable housing. We applaud Secretary Castro for his leadership in paving the way to make the National Housing Trust Fund a reality. We look forward to working with the administration and our state partners as we put these dollars to work building affordable homes for the lowest income people.”

Eight years after it was authorized by the Housing and Economic Recovery Act of 2008 (HERA), the Housing Trust Fund is only now being capitalized through contributions made by Fannie Mae and Freddie Mac.  In December 2014, the Federal Housing Finance Agency (FHFA) directed these Government Sponsored Enterprises (GSEs) to begin setting aside and allocating funds to the Housing Trust.

Click here to read the notice in the Federal Registrar.