Number: RL34158
Title: The New GSE Affordable Housing Funds: The Housing Trust Fund and the Capital Magnet Fund
Authors: N. Eric Weiss, Government and Finance Division; Katie Jones, Domestic Social Policy Division 
Abstract: Over the last several years, low-income housing organizations, led by the National Low Income Housing Coalition, have advocated for the establishment of a national affordable housing trust fund. Proponents argued that an affordable housing trust fund would provide a permanent source of dedicated funding for affordable housing activities that would not be subject to the annual appropriations process. Legislation to create an affordable housing trust fund has been introduced in every Congress since the 106th Congress. On July 30, 2008, the Housing and Economic Recovery Act of 2008 (P.L. 110-289) was signed into law and created two affordable housing funds using contributions from Fannie Mae and Freddie Mac. This report details the structure of the affordable housing funds and their funding mechanism. It also provides a discussion of the rationale for requiring Fannie Mae and Freddie Mac to contribute to affordable housing funds and outlines current issues that may affect the funds.
Pages: 15
Date: November 25, 2008