Announcement Regarding NJ’s 2019 HTF State Allocation Expected Later This Spring
Yesterday, Federal Housing Finance Agency (FHFA) Acting Director Joseph Otting announced that he has authorized the disbursement of Fannie Mae and Freddie Mac’s 2018 allocations of $244.86 million to the U.S. Dept. of Housing and Urban Development (HUD) for the national Housing Trust Fund (HTF). This announcement comes after a month long delay in the transfer of mandatory funding to the affordable housing fund.
Prior to yesterday’s announcement, New Jersey has received $17, 059,689 in HTF funding. New Jersey’s allocation through the 2019 HTF formula has not yet been announced. That announcement may happen later this spring.
The breakdown of the past national HTF allocations to New Jersey is:
- $3,733,566 from the 2016 HTF formula,
- $5,599,220 from the 2017 HTF formula, and
- $7,726,903 from the 2018 HTF formula.
It is anticipated that the FY 19 allocations may be less than the FY 18 allocations given that Fannie Mae and Freddie Mac did less business this year.
In 2018, the National Low Income Housing Coalition (NLIHC) reported that six projects in New Jersey used HTF grant awards to build or preserve a total of 20 rental homes for extremely low income households. A project in Millstone, New Jersey is featured in NLIHC’s Getting Started report. New Jersey had five “medium” sized awards – amounts greater than $500,000 but equal to or less than $1 million.
“I applaud the Federal Housing Finance Agency (FHFA) acting director for releasing the 2018 national Housing Trust Fund annual allocations. . . . NLIHC is grateful to Senators Susan Collins (R-ME) and Jack Reed (D-RI), as well as Chairwoman Maxine Waters (D-CA), for their leadership and tenacity in successfully urging FHFA to release these much needed funds.”
Earlier this year, Reed, along with Senator Susan Collins (R-ME), the Ranking Member and Chairman of the Senate Appropriations Subcommittee on Transportation, Housing, Urban Development and Related Agencies (THUD), sent a letter to FHFA Director Joseph Otting calling on the agency to continue funding the HTF and Capital Magnet Fund (CMF).
The HTF and CMF were established in 2008 but were not funded by Fannie Mae and Freddie Mac before they were placed into conservatorship. In late 2014, the FHFA, which oversees Fannie Mae and Freddie Mac, independently determined that their financial operations stabilized to a sufficient level to permit contributions to the HTF and CMF.
Click here to read NLIHC’s full press statement about the release of the HTF allocation.