National Housing Trust Fund

The National Housing Trust Fund (NHTF) is a new federal program that provides funding for affordable housing for Extremely Low Income (ELI) households with incomes at or below 30% of Area Median Income. The Governor has designated Florida Housing Finance Corporation to administer the NHTF in Florida. Each state must develop an allocation plan to guide how the funds will be used.

Florida Housing completed its final public review period for the proposed allocation plan in July. The proposed plan was submitted to HUD for review. US HUD provided comments and the plan was revised mainly to provide more background on the allocation process Florida Housing Finance Corporation uses to award program funds, including NHTF, to applicants. The final, approved plan can be found in the Quick Links box to the right.

This plan is part of the State of Florida’s adopted 5-year Consolidated Plan and associated Annual Action Plan. The allocation plan document includes proposed substantial amendments to the Consolidated Plan and Annual Action Plan to make these documents consistent. The Quick Links box also provides links to the Florida Department of Economic Opportunity’s website for those wishing to review the Consolidated Plan or Annual Action Plan.

More about the National Housing Trust Fund Program

Funding for the NHTF comes from Freddie Mac and Fannie Mae, which are required to transfer funds to HUD to make block grants available to the states according to a need-based formula. Fannie Mae and Freddie Mac are required to contribute 65% of 4.2 basis points (0.00042%) of their new business each year to the NHTF. The total amount in the trust fund will vary from year to year.

HUD announced that collections for 2016 have provided a total of $173,591,160 for allocation across the states, the District of Columbia and territories. The State of Florida’s allocation is $4,607,302 for 2016.

The NHTF is intended to benefit low income populations by increasing the supply of housing for ELI households and Very Low Income (VLI) households with incomes between 30% and 50% of AMI. Under the Interim Rule promulgated by HUD at 24 CFR 93, all of the funds must be used to benefit ELI households in years when the total amount of the national trust fund is less than $1 billion. In years when the trust fund exceeds $1 billion, states may use up to 25% of the funds to serve VLI households. At least 80% of the funds must be used for production of rental housing.

Each state must develop an NHTF allocation plan (Plan). The Plan describes how the state will implement the NHTF and will include incentives and priorities specific to the communities where the housing will be located. The Plan also establishes broad application requirements and criteria for selection of recipients. In addition, the Plan identifies preferences and prioritizes properties which serve particular segments of the ELI and VLI populations (e.g., homeless individuals, persons with a disabling condition, and so on).

The Plan is part of the 5-year State of Florida Consolidated Plan and affiliated Annual Action Plan that describes the priorities, uses and distribution of four other programs administered at the state level: the Community Development Block Grant program, administered by the Florida Department of Economic Opportunity; the Emergency Solutions Grant, administered by the Florida Department of Children and Families; the Housing Opportunities for Persons with AIDS program, administered by the Florida Department of Health; and the HOME program, also administered by Florida Housing Finance Corporation.

In general, the NHTF requirements are very similar to the HOME program with the notable exception that the Davis-Bacon federal labor standards do not apply to NHTF financed developments.

 
Contact Us

Florida Housing Finance Corporation

227 N. Bronough Street, Suite 5000

Tallahassee, Florida 32301

P (850) 488-4197

Suncom (850) 278-4197

F (850) 488-9809

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