The Federal Housing Finance Agency (FHFA) announced that the Housing Trust Fund (HTF) and Capital Magnet Fund (CMF) will receive approximately $301 million for affordable housing initiatives from Fannie Mae and Freddie Mac, a nearly 45% drop from last year.

The HTF, overseen by the Department of Housing and Urban Development, is set to receive $196 million. The program allocates funding annually to states and state-designated entities to produce or preserve affordable housing through the acquisition, new construction, reconstruction, and/or rehabilitation of non-luxury housing.

The CMF, overseen by the Department of the Treasury, will receive $105 million. It competitively awards money to finance affordable housing activities, related economic development activities, and community service facilities.

By law, amounts allocated to these funds are based on the government-sponsored enterprises’ new business purchases. Market conditions in 2023, including elevated interest rates, reduced the enterprises’ total new business purchases compared with the previous year.

Last year, FHFA announced that $545 million would go to the two programs. The HTF received $354 million, and the CMF received $191 million in 2023.

In 2022, the programs received more than $1.1 billion, with the HTF receiving $740 million and CMF receiving $398 million.