What is Housing Trust Fund?

About the Program

The Housing Trust Fund (HTF) is a new affordable housing production program that will complement existing Federal, state and local efforts to increase and preserve the supply of decent, safe, and sanitary affordable housing for extremely low-income households, including homeless families. The HTF was established under Title I of the Housing and Economic Recovery Act of 2008, Section 1131. HTF funds may be used for the production or preservation of affordable housing through the acquisition, new construction, reconstruction, and/or rehabilitation of non-luxury housing with suitable amenities. On January 30, 2015, HUD published an Interim Rule which provides the guidelines for States to implement the HTF.


What The Program Does

The National Housing Trust Fund (HTF) assists communities and developers with increasing the supply of rental housing that is affordable to extremely low income (ELI) households. Units that are built, acquired and/or rehabilitated using HTF funds must be available to households with income at or below 30% of Area Median Income, or the Federal Poverty Guideline, whichever is greater (adjusted for household size).  

The program helps communities, via housing developers, respond to housing issues and needs in underserved areas.  Funds are awarded on a competitive basis annually. For-profit and non-profit developers may apply for deferred HTF loans to acquire, rehabilitate or construct rental housing. Most HTF-assisted projects involve significant leveraging of other resources, such as Low Income Housing Tax Credits (LIHTC), USDA Rural Development loans, FHLBank’s AHP funds, private debt, foundation grants, and resources from other Federal, State and local programs.  

HTF funds will allow the owner/developer to reduce the amount of debt necessary to finance a development. Lower debt service requirements help a project remain viable and affordable with reduced rents over the long term. HTF-assisted units must be made available to low-income and very-low-income households at affordable rents, for 30 years.

Information about HUD’s National Housing Trust Fund (HTF), including rent and income limits for each state and county, can be found at: https://www.hudexchange.info/programs/htf/