FHFA Authorizes More than $1 Billion for Affordable Housing Funds
March 01, 2021 / Source: FHFA
Largest amount ever disbursed to Housing Trust Fund and Capital Magnet Fund, more than double 2019 amounts
Washington, D.C. – FHFA Director Mark Calabria announced today that he has authorized the disbursement of $1.09 billion for Fannie Mae and Freddie Mac's (the Enterprises) affordable housing allocations for 2020. This is the largest amount ever disbursed and more than double what was provided last year. Of the Enterprises' provided funds, $711 million will go to the U.S. Department of Housing and Urban Development (HUD) for the Housing Trust Fund, an increase from the $326.4 million disbursed for 2019. The sum of $383 million will go to the Department of the Treasury (Treasury) for the Capital Magnet Fund, an increase from the $175.8 million disbursed for 2019.
“The more than $1 billion disbursed today will help produce and preserve affordable housing throughout the country. The record increase in house prices last year exacerbated the affordable housing shortage. To help increase the supply of affordable housing in our communities, FHFA remains steadfast in support of the Housing Trust Fund and Capital Magnet Fund,” said Director Mark Calabria.
The Housing Trust Fund, overseen by HUD, allocates money annually to states and state-designated entities for the production or preservation of affordable housing through the acquisition, new construction, reconstruction, and/or rehabilitation of non-luxury housing.
The Capital Magnet Fund, overseen by Treasury, competitively awards money to finance affordable housing activities, as well as related economic development activities and community service facilities.
The Federal Housing Finance Agency regulates Fannie Mae, Freddie Mac and the 11 Federal Home Loan Banks. These government-sponsored enterprises provide more than $6.7 trillion in funding for the U.S. mortgage markets and financial institutions. Additional information is available at www.FHFA.gov, on Twitter, @FHFA, YouTube, Facebook, and LinkedIn.