NLIHC staff reviewed the recently published interim rule that will govern how the National Housing Trust Fund (NHTF) will work, and provided state and local housing advocates and providers with detailed information on what they need to know to prepare for the first #NHTF dollars coming to their state in early 2016.
NHTF funding is expected to be available by the summer of 2016. New Jersey does not yet have an agency designated to administer the funds. Once that agency is designated, it can administer the money or give the money to sub grantees.
If $250 million is available, New Jersey will receive $6,520,000 and if $500 million is available, New Jersey will receive $15,720,000.
Prior to the NHTF reaching $1 billion, all funds must go to ELI households. After the NHTF reaches $1 billion, 75% of the NHTF funding must fund the creation, preservation and/or operation of rental units for Extremely Low Income (ELI) households and 25% for Very Low Income (VLI) households.
90% of NHTF will be for rental housing and 10% for homeownership.
The NHTF will provide communities with funds to build, preserve, and rehabilitate rental homes that are affordable for extremely and very low-income households.
The NHTF’s most important features are:
It is a permanent program, and will have dedicated source of funding not subject to the annual appropriations process.
Targeted toward rental housing, at least 90% of the funds must be used for the production, preservation, rehabilitation, or operation of rental housing. Up to 10% can be used for the following home ownership activities for first-time home buyers: production, preservation, and rehabilitation; down payment assistance, closing cost assistance, and assistance for interest rate buy-downs.
Targeted toward extremely low income households, at least 75% of the funds for rental housing must benefit extremely low income households and all funds must benefit very low income households.