 |
 |
 |
 |
 |
 |
 |
 |
 |
National Housing Trust Fund Legislation
The National Low Income Housing Coalition, in partnership with over 500 housing advocacy groups across the country, is spearheading a campaign to create a National Affordable Housing Trust Fund. The initial goal of the National Affordable Housing Trust Fund is to produce, rehabilitate and preserve 1,500,000 units of affordable housing that serves the needs of low-income communities by 2010. The proposed source of revenue would be excess funds from the Fair Housing Administration (FHA) and Ginnie Mae. Some key elements of the Campaign's policy proposal include:
Drawing from the model policy proposal that the National Housing Trust Campaign has developed, legislation was introduced in June 2001 by Congressman Bernie Sanders (I-VT) to create a National Affordable Housing Trust Fund. Co-sponsors of the bill include: Congresswoman Barbara Lee (D-CA), Congresswoman Karen McCarthy (D-MO), Congresswoman Lynn Rivers (D-MI), Congresswoman Stephanie Tubbs-Jones (D-OH), and Congressman Danny K. Davis (D-IL). The [Sanders'] National Affordable Housing Trust Fund would be capitalized by using some of the surplus from the Federal Housing Administration (FHA). FHA is expected to accumulate a $26 billion surplus over the next 10 years. Trust fund dollars would be funneled to states and to the non-profit housing community to support the construction of affordable housing. The Campaign anticipates that additional bills to support a national housing trust fund will be introduced by other legislators.
For more information on how to get involved visit the National Affordable Housing Trust Fund Campaign website.
Some states have adopted legislation that expands funding sources to support affordable housing.
One example is Pennsylvania's Act 137 that enables counties to double document recording fees, if these funds are allocated to local affordable housing funds. Counties have the discretion to do this, and counties control the use of these funds, as long as they are in accordance with the broad parameters contained in the enabling legislation.
This is a very replicable model, creating a new revenue source for counties to support affordable housing. The Pennsylvania example illustrates that states can play an active role in addressing the affordable housing challenge, while allowing for local jurisdictions to address their unique priorities.
Create Private Sector Incentives
At present, the vast majority of housing trust funds are established through public sector revenue sources. The private sector can be encouraged to contribute to affordable housing trust funds through the use of tax incentives.
Promote Public, Private, and Nonprofit Sector Collaboration
Some promising models are emerging for cross-sector collaboration in the establishment of affordable housing trust funds. In California's Santa Clara County - the heart of Silicon Valley - a collaborative of public, private, and nonprofit sector organizations are creating an affordable housing trust fund. A consortium of business leaders, elected officials, and housing advocates has raised $19.1 million of $20 million goal in 22 months. One-third of these funds come from the County and several area cities that have devoted redevelopment dollars. Over half of the funds have been contributed by area employers in sums ranging from $50 to $1 million-an acknowledgment that the housing crisis is having a serious impact on their workers. Additional funding (currently over $2 million) comes from private foundations and individual donors. Programs targeted to receive Housing Trust Fund dollars include homeless housing, affordable rental housing, and first-time homebuyers assistance.
 |
 |
 |