The primary ask in the letter is for Mel Watt, who recently was sworn in as director of the FHFA, to begin contributions from Fannie and Freddie to the NHTF, in accordance with the Housing and Economic Recovery Act of 2008.
He joined 32 of his colleagues in the Senate, including Senator Cory Booker, in signing the letter. Senators Boxer and Warren circulated the letter through the Senate.
Monarch Housing Associates thanks Senator Menendez for his continued leadership on his critical issue!
What could this mean for the National Housing Trust Fund (NHTF)?
Based on current projections the contributions from Fannie and Freddie to the NHTF could produce $17 million a year for NJ.
The Federal Housing Finance Agency (FHFA) is the agency that regulates government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac. As director of the FHFA, Mr. Watt now holds the authority to require Fannie Mae and Freddie Mac to provide funding to the NHTF as was initially intended by the Housing and Economic Recovery Act of 2008. Fannie Mae and Freddie Mac’s statutory obligation to contribute to the NHTF was temporarily suspended when the GSEs were taken into conservatorship in 2008.
Now that both Fannie Mae and Freddie Mac are reporting record profits, NLIHC contends that the conditions for the suspension no longer apply and revenue to the NHTF should begin immediately.
Once funded, the National Housing Trust Fund will provide the first new federal money for rental housing production targeted to extremely low-income families since the Section 8 program was passed in 1974. With the implementation of the National Housing Trust Fund, we can begin to finally address the acute shortage of low cost rental housing and end homelessness in our country.