On Tuesday, the U.S. Department of Housing and Urban Development (HUD) announced the allocation of $10,536,095 million to the State of Missouri through the nation’s Housing Trust Fund (HTF) for affordable housing.
In total, HUD awarded nearly $700 million nationwide. The Housing Trust Fund was launched in 2008 as an affordable housing production program that complements existing federal, state, and local efforts.
The Housing Trust Fund is capitalized through the contributions made by Fannie Mae and Freddie Mac. This year’s allocation is a significant increase in funding from last year’s allocation of $322,564,267.66.
This program is specifically focused on housing for some of our most vulnerable populations. HUD annually allocates HTF funds by formula. A state must use at least 80 percent of each annual grant for rental housing; up to 10 percent for homeownership; and up to 10 percent for the grantee’s reasonable administrative and planning costs.
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.
In addition, HUD has granted Missouri $478,500 to public housing authorities, funding included in the $36.9 million to public housing authorities, public housing resident associations, Native American tribes, and nonprofit organizations across the nation.