Amendments in Congress Could Devastate NHTF

Provisions Would Empty Resources
Prohibit Directions of Funds

United for Homes Campaign Explains Ellison BillRepresentatives will vote on amendments to protect 2016 and future funding of the National Housing Trust Fund (NHTF) when the House considers H.R. 2577, the FY16 Transportation, Housing and Urban Development, and Related Agencies appropriations bill.

The legislation could be considered as early as the week of June 1, 2015.

H.R. 2577 includes two provisions devastating to the NHTF:

  • The first would empty the NHTF of all of its resources in 2016 and transfer these resources to the HOME program, which the bill cuts by $133 million for FY16.
  • The second would prohibit Congress from directing any other funds to the NHTF.

The NHTF was signed into law in 2008 but its initial funding source, a 4.2 basis point assessment on new business at Fannie Mae and Freddie Mac, was suspended that same year after these government-sponsored enterprises went into conservatorship.

In December 2014, the suspension was lifted, and in January 2015 HUD issued interim regulations. The NHTF is set to receive its first monies in 2016. NJ could receive at least $3.36 million.

Click here to read more about the two provisions to H.R. 2577.