The Federal Housing Finance Agency has more than doubled Fannie Mae and Freddie Mac’s affordable housing funds, the agency announced on Monday.
FHFA Head Mark Calabria authorized the disbursement of $1.09 billion for the GSEs’ affordable housing allocations for 2020 – the largest amount FHFA has ever disbursed and a two-fold increase from 2019.
According to the agency’s Press release, $711 million of the funds will go to the US Department of Housing and Urban Development’s (HUD) Housing Trust Fund, an increase from the $326.4 million disbursed for 2019. Meanwhile, $383 million will go to the Department of the Treasury’s Capital Magnet Fund, $175.8 million more than what was provided in 2019.
“The more than $1 billion disbursed today will help produce and preserve affordable housing throughout the country,” Calabria said. “The record increase in house prices last year exacerbated the affordable housing shortage. To help increase the supply of affordable housing in our communities, FHFA remains steadfast in support of the Housing Trust Fund and Capital Magnet Fund.”
The Housing Trust Fund, managed by HUD, allocates money every year to states and state-designated entities for the production or preservation of affordable housing through the acquisition, new construction, reconstruction, and/or rehabilitation of non-luxury housing.
The Capital Magnet Fund, which is overseen by Treasury, competitively awards money to finance affordable housing activities, as well as related economic development activities and community service facilities.