Bill Introduced to Block Funds to National Housing Trust Fund

Last week, Rep. Edward R. Royce (R-CA-39) and 12 co-sponsors introduced a bill (H.R. 574) to prohibit contributions by Fannie Mae and Freddie Mac to the National Housing Trust Fund (NHTF). The bill was referred to the House Committee on Financial Services. Congress created the NHTF in 2008 to fund affordable housing for people with the lowest incomes, a group that includes many people with disabilities. By law, the NHTF is intended to have dedicated funding from a very small assessment on the volume of business of Fannie Mae and Freddie Mac. However, until now the NHTF has remained unfunded. Fannie Mae and Freddie Mac ran into deep financial trouble as the foreclosure crisis hit the nation in the fall of 2008, and as a result, contributions from Fannie Mae and Freddie Mac to the NHTF were suspended. However, in December 2014 the Federal Housing Finance Agency ended the suspension, meaning that Fannie Mae and Freddie Mac will now begin setting aside and directing funds to the NHTF. Current projections are that states will begin receiving NHTF funds in the spring of 2016. The Arc strongly supports funding the NHTF to help meet the urgent needs of people with disabilities for affordable, accessible community housing. The Arc strongly opposes efforts to block funds going into the NHTF, such as H.R. 574.

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