NAHMA HUD Update: FHFA Authorizes More than $1 Billion for Affordable Housing FundsMarch 1, 2021 Dear NAHMA Members, Today, the Federal Housing Finance Agency (FHFA) has announced authorizing the disbursement of $1.09 billion for Fannie Mae and Freddie Mac's affordable housing allocations for 2020. This funding is intended to help produce and preserve affordable housing throughout the country and is the largest amount ever disbursed (more than doubling what was provided last year). Of the provided funds, $711 million will go to HUD for the Housing Trust Fund, representing a large increase from the $326.4 million disbursed for 2019. The remaining sum of $383 million will go to the Treasury Department for the Capital Magnet Fund, a substantial increase from the $175.8 million disbursed for 2019. The Housing Trust Fund, overseen by HUD, allocates money annually 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. The Capital Magnet Fund, overseen by Treasury, competitively awards money to finance affordable housing activities, as well as related economic development activities and community service facilities. To view the official press release announcement from the FHFA on the funding authorization, click here.
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