Rules Set for Disbursement of Affordable Housing Funds

When Federal Housing Finance Agency Director Melvin L. Watts
testified before the House Financial Services Committee early this week he said
that FHFA had notified Fannie Mae and Freddie Mac that it was reversing
of contributions to affordable housing funds which the GSEs were
required to make prior to being placed in conservatorship.  The suspension was authorized by the Housing
and Economic Recovery Act (HERA) in 2008.   

Friday the Department of Housing and Urban Development (HUD) clarified how
those funds would be used
with publication in the Federal Register of an interim program rule for the National
Housing Trust Fund (HTF). HTF is a new production program designed to work with
other existing programs to increase and preserve the supply of decent, clean
and safe affordable housing for extremely
low- and very low-income households, including homeless families.  The rule provides guidance to states and state-designated entities
which are eligible grantees of HTF on the program’s implementation.

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