FHFA Announces $301 Million for Affordable Housing Programs
Funds disbursed to Housing Trust Fund and Capital Magnet Fund
Washington, D.C. – RealEstateRama – The Federal Housing Finance Agency (FHFA) announced that the Housing Trust Fund and Capital Magnet Fund will receive approximately $301 million for affordable housing initiatives from Fannie Mae and Freddie Mac (the Enterprises).
“Affordable housing is one of the greatest challenges facing communities across the country today,” said FHFA Director Sandra L. Thompson. “A portion of every loan purchased by the Enterprises is allocated to the Housing Trust Fund and the Capital Magnet Fund, which provide resources that increase affordable housing options in our communities.”
The Housing Trust Fund, overseen by the U.S. Department of Housing and Urban Development, will receive $196 million. The Housing Trust Fund allocates funding annually to states and state-designated entities to produce or preserve affordable housing through the acquisition, new construction, reconstruction, and/or rehabilitation of non-luxury housing.
The Capital Magnet Fund, overseen by the U.S. Department of the Treasury, will receive $105 million. The Capital Magnet Fund competitively awards money to finance affordable housing activities, related economic development activities, and community service facilities.??
By law, amounts allocated to these funds are based on the Enterprises’ new business purchases. Market conditions in 2023, including elevated interest rates, reduced the Enterprises’ total new business purchases compared to the previous year.
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The Federal Housing Finance Agency regulates Fannie Mae, Freddie Mac, and the 11 Federal Home Loan Banks. These government-sponsored enterprises provide more than $8.4 trillion in funding for the U.S. mortgage markets and financial institutions. Additional information is available at www.FHFA.gov, on Twitter @FHFA
