Federal Housing Finance Agency (FHFA) acting director Sandra L. Thompson announced that the Housing Trust Fund and Capital Magnet Fund will receive a total of $1.138 billion for affordable housing initiatives from Fannie Mae and Freddie Mac. This is the largest amount ever provided to these programs from the government-sponsored enterprises.
"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."
The Housing Trust Fund, overseen by the Department of Housing and Urban Development, allocates funding 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. This program will receive $740 million, a $29 million increase from the previous year.
The Capital Magnet Fund, overseen by the Department of the Treasury, competitively awards money to finance affordable housing activities, as well as related economic development activities and community service facilities. This program will receive $398 million, a $15 million increase from the previous year.