Many states will see a jump in their Housing Trust Fund (HTF) allocation for FY 2017. That’s because the HTF allocation relies on contributions from a set percentage of Fannie Mae and Freddie Mac’s new yearly business. 2016 saw $174 million to the Fund, while this fiscal year brings $219 million. For now, 100% of HTF funds must be used towards extremely low income households (less than or equal to 30%AMI). If the fund should ever reach $1 billion or more, then 25% of the total allocation could be put towards very low-income households (less than or equal to 50% AMI). The block grant program is distributed to states based on population, with 27 states and the District of Columbia receiving the minimum $3 million due to population size.
As recently reported by Novogradac, California will see the largest increase over last year’s funding – a 129% increase for a total of $23,228,115, while New York will see a 111% increase and Texas will see an 85% increase.
