| Documentation: | Picture of Subsidized Households 2018 |
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Publisher: The Department of Housing and Urban Development (HUD)
| Document: | Programs of HUD: Major Mortgage, Grant, Assistance, and Regulatory Programs 2018 |
| citation: | Programs of HUD: Major Mortgage, Grant, Assistance, and Regulatory Programs 2018, The Department of Housing and Urban Development (HUD) |
Provides funds to states, the Commonwealth of Puerto Rico, the District of Columbia, and
insular areas for the construction, rehabilitation, and preservation of rental homes and for
homeownership for extremely low- and very low-income families, including homeless families.
Nature of the Program: The Housing Trust Fund (HTF) provides funding to construct, rehabilitate and preserve permanent rental and homeownership housing, primarily for extremely low-income families. At least 80 percent of the funds must be used for the production, preservation, rehabilitation, or operation of rental housing. Up to 10 percent can be used for the following homeownership activities for first-time homebuyers: production, preservation, and rehabilitation; down payment assistance, closing cost assistance, and assistance for interest rate buy-downs.
In any fiscal year with an aggregate formula allocation under $1 billion, 100 percent of the grant funds must benefit extremely low-income households or families with incomes below the poverty line, whichever is greater. In any fiscal year with an aggregate formula allocation over $1 billion, seventy-five percent of grant funds must benefit extremely low-income households. Eligible activities and expenses include real property acquisition, site improvements and development hard costs, related soft costs, demolition, financing costs, relocation costs. Up to one third of the annual formula allocation may be used for operating cost assistance for rental housing, and up to 10 percent of the formula allocation may be used for reasonable administrative and planning costs. Eligible forms of assistance include equity investments, interest-bearing loans or advances, non-interest bearing loans or advances, interest subsidies, deferred payment loans, grants, and other forms of assistance approved by HUD. Also, funds may be used for the new construction or rehabilitation of public housing units, in certain circumstances: (1) as part of the Choice Neighborhood Program under a HUD appropriations act; (2) for new public housing units that will receive Low-Income Housing Tax Credits; and (3) for the rehabilitation of public housing units whose public housing assistance will be converted under the Rental Assistance Demonstration Program.
HTF-assisted rental housing units must have a minimum affordability period of 30 years. The affordability period for homeownership housing ranges from 10 to 30 years, depending on the amount of the per-unit homeownership assistance.
The program regulations also require grantees to establish maximum per-unit subsidy limits, and to conduct independent underwriting and subsidy layering reviews before committing program funds to a project. HTF-assisted homebuyer housing is subject to resale or recapture requirements.
Applicant Eligibility: Funds are distributed by formula to states, and states may then distribute the money according to a state plan to state-designated entities or subgrantees for further distribution within a state, or directly to qualified recipients, such as nonprofit and for-profit organizations.
Funding Availability: In any fiscal year, funds are to be allocated to provide each state and the District of Columbia with a minimum grant of $3 million. If in any fiscal year available funding is insufficient to make this minimum allocation to reach state and the District of Columbia, HUD will, through a notice published for public comment, describe an alternative method for allocating the grant funds.
Legal Authority: Section 1338 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4568). Regulations are at 24 CFR part 91 and part 93.
Information Source: Assistant Secretary for Community Planning and Development.
On the web: https://www.hudexchange.info/programs/htf/
Current Status: Active.
Nature of the Program: The Housing Trust Fund (HTF) provides funding to construct, rehabilitate and preserve permanent rental and homeownership housing, primarily for extremely low-income families. At least 80 percent of the funds must be used for the production, preservation, rehabilitation, or operation of rental housing. Up to 10 percent can be used for the following homeownership activities for first-time homebuyers: production, preservation, and rehabilitation; down payment assistance, closing cost assistance, and assistance for interest rate buy-downs.
In any fiscal year with an aggregate formula allocation under $1 billion, 100 percent of the grant funds must benefit extremely low-income households or families with incomes below the poverty line, whichever is greater. In any fiscal year with an aggregate formula allocation over $1 billion, seventy-five percent of grant funds must benefit extremely low-income households. Eligible activities and expenses include real property acquisition, site improvements and development hard costs, related soft costs, demolition, financing costs, relocation costs. Up to one third of the annual formula allocation may be used for operating cost assistance for rental housing, and up to 10 percent of the formula allocation may be used for reasonable administrative and planning costs. Eligible forms of assistance include equity investments, interest-bearing loans or advances, non-interest bearing loans or advances, interest subsidies, deferred payment loans, grants, and other forms of assistance approved by HUD. Also, funds may be used for the new construction or rehabilitation of public housing units, in certain circumstances: (1) as part of the Choice Neighborhood Program under a HUD appropriations act; (2) for new public housing units that will receive Low-Income Housing Tax Credits; and (3) for the rehabilitation of public housing units whose public housing assistance will be converted under the Rental Assistance Demonstration Program.
HTF-assisted rental housing units must have a minimum affordability period of 30 years. The affordability period for homeownership housing ranges from 10 to 30 years, depending on the amount of the per-unit homeownership assistance.
The program regulations also require grantees to establish maximum per-unit subsidy limits, and to conduct independent underwriting and subsidy layering reviews before committing program funds to a project. HTF-assisted homebuyer housing is subject to resale or recapture requirements.
Applicant Eligibility: Funds are distributed by formula to states, and states may then distribute the money according to a state plan to state-designated entities or subgrantees for further distribution within a state, or directly to qualified recipients, such as nonprofit and for-profit organizations.
Funding Availability: In any fiscal year, funds are to be allocated to provide each state and the District of Columbia with a minimum grant of $3 million. If in any fiscal year available funding is insufficient to make this minimum allocation to reach state and the District of Columbia, HUD will, through a notice published for public comment, describe an alternative method for allocating the grant funds.
Legal Authority: Section 1338 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4568). Regulations are at 24 CFR part 91 and part 93.
Information Source: Assistant Secretary for Community Planning and Development.
On the web: https://www.hudexchange.info/programs/htf/
Current Status: Active.
