Bill to Fund NHTF by Reform of Mortgage Interest Deduction Subject of July 25 Webinar
The NHTF Campaign has been working with Congressman Keith Ellison (D-MN) on legislation to provide substantial funding for the National Housing Trust Fund with savings gained from reform of the Mortgage Interest Deduction. The campaign will hold a webinar in Wednesday, July 25 at 2pm EDT to brief advocates on the draft legislation.
The NHTF was enacted into law in July 2008. The initial funding source was to be contributions from Fannie Mae and Freddie Mac, but due to the financial collapse in September 2008, no contributions have ever been made. The statute provides for Congress to direct other funds it so chooses to the NHTF. The goal of the NHTF campaign is to obtain the equivalent of $30 billion a year for 10 years in order to expand rental housing that is affordable to extremely low income households by 3.5 million.
HUD has developed the regulations for how the NHTF will operate and they are expected to be released in fall 2012. Under that statute at least 90% of the funds must be used for rental housing and at least 75% of the funds must benefit extremely low income households with the remaining limited to very low income households. HUD’s proposed rule would require 100% of the funds be used to serve extremely low income households for at least the first year.
Click here to sign up for the webinar on the mortgage interest deduction reform proposal.