The National Affordable Housing Trust Fund Act of 2000 promises to help solve the nation’s housing crisis in part by redirecting FHA funds to housing development and rental subsidies.
One or more scans of original printed documents are included here. To read the text of these documents, please activate the Read the Text tab.
The ANHD Weekly Reader
Legislative Watch continued
Bill to Establish National Affordable Housing Trust Fund Introduced
On July 27 Senator John F. Kerry (D-MA) introduced the National Affordable Housing Trust Fund Act of 2000 (S.2997). Senator Kerry proposes that excess revenue from the Mutual Mortgage Insurance Fund of FHA and from Ginnie Mae be dedicated to the trust fund. Eligible activities to be supported from the Trust Fund are construction of new housing, purchase of real property, site preparation and demolition, substantial rehab, and up to three years of rental subsidy. Three quarters of the funds are to be distributed to the states on a formula matching grant basis and 75% of those funds must be used for rental housing that is affordable to extremely low income people for 40 years and that is in mixed income developments. The remaining 25% of the trust fund will be distributed through a national competition with grants going to non-profit intermediaries, and 75% of these funds must be used for rental housing for households with incomes less than 30% of the area median income in mixed income developments that remain affordable for 40 years.
Included in the bill is the concept of “continued assistance rental subsidy,” which combines the good features of both project-based assistance to underwrite housing production and tenant-based assistance to allow tenants housing choice. The eligible activity of three years of operating subsidy is contingent on partnership with a local PHA to refer more voucher holders to the development and to provide vouchers to any tenant who desires to move out. A section-by-section description of S. 2997 can be found on the NLIHC. www.nlihc.org/news/s2997.htm.