The bill provides for potentially at least $3.5 billion a year for the National Housing Trust Fund (NHTF) that has been the goal of the United for Homes Campaign. This would be the most significant new investment in affordable rental housing for America’s neediest families in forty years.
The Johnson-Crapo bill is an important step in housing finance reform and could mean a major advancement for United for Homes and the NHTF. The bill includes and maximizes revenue to the NHTF, recognizing the significance the NHTF has to ending the shortage of affordable housing for extremely low-income families and individuals. It is critical that housing advocates remain engaged as the Johnson-Crapo bill advances.
As background about the bill, the Johnson-Crapo bill would wind down Fannie Mae and Freddie Mac and create a new Federal Mortgage Insurance Corporation (FMIC) to regulate the secondary mortgage market, similar to the way the FDIC regulates banks. The bill would require an assessment of 10 basis points on all outstanding FMIC covered securities. These funds would be directed to affordable housing activities with 75% going to the NHTF, 15% to the Capital Magnet Fund (CMF), and 10% to a new Market Access Fund (MAF).
Click here for more details on the Johnson-Crapo bill and its impact on the United for Homes campaign.
Click here to read NLIHC’s March 16 statement applauding the Johnson-Crapo bill.