National Housing Trust Fund

The National Housing Trust Fund (NHTF) is a federal program that provides funding for affordable housing for Extremely Low Income (ELI) households with incomes at or below 30% of Area Median Income. Each state must develop and annually update an allocation plan to guide how the funds will be used. The most current Annual Action Plan is included in the 2020-2024 State of Florida Consolidated Plan, which can be found on the Florida Department of Economic Opportunity’s website via the Quick Links box on this page.

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 varies from year to year. Florida’s most recent plan provides the amount of the state’s allocation for that period.

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.

The Plan describes how the state will implement the NHTF and includes incentives and priorities specific to the state. 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.

Eligible applicants should apply for funding through Florida Housing's Request for Applications (RFA) process or contact our office for further information.  For more information about NHTF, check our Quick Links box.