In a preview of the Administration’s FY-2013 Budget (to be released on February 13), the Obama Administration has announced as part of its “Plan to Help Responsible Homeowners and Heal the Housing Market” that his budget will call for $1 billion to capitalize the federal rental housing trust fund. The fund is targeted to help build, preserve and rehabilitate affordable rental housing and would be administered by HUD and distributed to states as grants under a formula based on shortage of affordable housing. This fund was created as part of the HERA legislation in 2008 and was intended to be funded by profits from the GSEs, which never materialized after their near collapse in the fall of 2008.
President Obama has proposed funding for the rental housing trust fund in each of his previous budget proposals. Legislative sources indicate that a possible vehicle for funding for the trust fund might be forthcoming tax-extender legislation. Presently there are also two Democratic-sponsored bills in the Congress, S. 489 and HR 1477, sponsored by Senator Jack Reed (D-R.I.) and Representative Elijah Cummings (D-Md.) respectively that would fund the trust fund. Neither bill is expected to advance on its own. There is also legislation introduced by House Republicans (HR 2441) that would abolish the Trust Fund.
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