Housing and Economic Recovery Act of 2008 most important housing legislation in decades!
If the Trust Fund had been fully in effect in 2008, it would have provided approximately $300 million for affordable housing!
On July 30, 2008, the Housing and Economic Recovery Act of 2008 was signed into law. This historic bill establishes a National Housing Trust Fund, creates a Capital Magnet Fund for housing and economic development, and makes significant improvements to the Low Income Housing Tax Credit program. The Act is one of the most important pieces of housing legislation in decades. We have reported on this bill extensively. For our most recent post click here.
Our friends at The National Alliance to End Homelessness has prepared a summary of its key provisions. To read the full report click here.
National Housing Trust Fund
The National Housing Trust Fund would primarily develop rental housing affordable to extremely low-income households (below 30 percent of area median income);
Resources for the Trust Fund are dedicated and would not require annual appropriations like other housing programs. Funding for the Trust Fund will be phased in over three years;
If the Trust Fund had been fully in effect in 2008, it would have provided approximately $300 million for affordable housing;
At least 90 percent of Trust Fund resources would be for rental housing, including the production, preservation, and rehabilitation of rental housing, or for operating costs; and
At least 75 percent of the amount used for rental housing would have to be for extremely low-income households (30 percent or less of area median income) or families with incomes at or below the poverty line.
Capital Magnet Fund
The Capital Magnet Fund would be operated by the Department of Treasury. Nonprofit housing developers or Community Development Financial Institutions (CDFIs) could apply for access to its funds;
Funds could be used for the development, preservation, rehabilitation, or purchase of affordable housing for primarily extremely low-, very low-, and low- income families; and
Funds could also be used for economic development activities or community service facilities, such as day care centers, workforce development centers, and health care clinics, which in conjunction with affordable housing activities implement a concerted strategy to stabilize or revitalize a low-income area or underserved rural area.
Low Income Housing Tax Credit
Ongoing rent and operating subsidies would not reduce eligible basis;
It will be easier to use project-based vouchers, McKinney-Vento subsidies, and other federal housing programs in conjunction with the Tax Credit;
More community service space would be eligible; and
Preferences for tenants with special needs would be explicitly permitted.
To read the full report click here.
Tags: Advocacy, foreclosures, Low-Income-Housing-Tax-Credits, NAEH, Natioanl-Low-Income-Housing-Coalition, subprime crisis
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