Approximately $689.6 million will be allocated through the nation’s Housing Trust Fund (HTF), nearly twice as much as last year, reported the Department of Housing and Urban Development (HUD).

The Housing Trust Fund, which was launched in 2008 to help produce affordable housing, is capitalized through the contributions made by Fannie Mae and Freddie Mac based on their volume of business.

Recent low interest rates led to a wave of mortgage refinancing in the midst of the pandemic, according to reports.

“This past year has reminded us just how important it is to have access to safe and stable housing. But too many Americans are struggling to keep or find an affordable home,” said HUD secretary Marcia L. Fudge in a statement. “We are excited to announce this historic funding allocation, which will enable states to expand and preserve affordable housing for our neighbors who need our support the most.”

This year’s funding is expected to produce more than 5,400 affordable units.

HUD annually allocates HTF funds by formula. A state must use at least 80% of each annual grant for rental housing, up to 10% for homeownership, and up to 10% for the grantee's reasonable administrative and planning costs.

HTF funds may be used for the production or preservation of affordable housing through the acquisition, new construction, reconstruction, and/or rehabilitation of non-luxury housing with suitable amenities.

All HTF-assisted units will be required to have a minimum affordability period of 30 years. The Housing Trust Fund has supported the construction or rehabilitation of 775 rental units nationally since they first were allocated in 2017. There are currently 480 additional projects under construction. This year’s funding is expected to produce more than 5,400 additional affordable units.

The Housing Trust Fund was launched in 2008 as an affordable housing production program that complements existing federal, state, and local efforts to increase and preserve the supply of decent, safe, and sanity affordable housing for low- and extremely low-income households, including families experiencing homelessness.

See here for list of state allocations.