After more than a decade of work by the Law Center and other advocates seeking to generate more federal funding for affordable housing development, the National Housing Trust Fund (NHTF) became law in 2008. The funding source for the NHTF was to be a percentage of the profits from Fannie Mae and Freddie Mac. Unfortunately, due to the recession and foreclosure crisis, these entities failed to turn a profit in 2008 and subsequent years, and contributions to the NHTF were suspended.
However, on December 11, Federal Housing Finance Administration Director notified both Fannie and Freddie that in his determination both agencies are once again profitable, and thus must contribute to the NHTF going forward. The contribution will be based on 2015 profits and will be made at the end of the year, so funds will not be available through the NHTF until early 2016. Despite the lag time before the NHTF will begin to distribute funds, we are pleased by this important decision and excited to see the NHTF finally move closer to operation.