The NHTF will, once capitalized, provide communities with funds to build, preserve, and rehabilitate rental homes that are affordable for extremely and very low income households. The NHTF’s most important features are:
- It is a permanent program, and will have dedicated sources of funding not subject to the annual appropriations process.
- It is targeted toward rental housing. At least 90% of the funds must be used for the production, preservation, rehabilitation, or operation of rental housing. Up to 10% can be used for home ownership activities for first-time home buyers including production, preservation, and rehabilitation. as well as down payment, closing cost, and for interest rate buy-down assistance.
- It is targeted toward extremely low income households. At least 75% of the funds for rental housing must benefit extremely low income households, and up to 25% can benefit very low income households.
The National Housing Trust Fund was established as a provision of the Housing and Economic Recovery Act of 2008, which was signed into law by President George W. Bush. The passage of National Housing Trust Fund legislation is a major victory for low income housing advocates and the lowest income people in our country with the most serious needs.
For more information on the National Housing Trust Fund and a variety of resources and videos, visit http://nhtf.org