WASHINGTON (CN) – The Department of Housing and Urban Development has issued a proposed formula for allocating funds from the Housing Trust Fund, for public comment.
The Housing and Economic Recovery Act of 2008 established the trust fund to provide states with grants to increase and preserve the supply of rental housing for extremely low- and very low-income families, including homeless families, and to increase homeownership for extremely low- and very low-income families.
An extremely low-income renter household would be defined as a household whose income does not exceed 30 percent of the area median income (AMI), under HUD’s rule instituting the proposed formula. A very low-income renter household would be defined as a household whose income does not exceed 50 percent of AMI. Extremely low-income and very low-income renter households would have an adjustment for family size.
The Housing and Economic Recovery Act specifies that only certain factors are to be part of the formula, and it assigns priority to certain factors. The act was major housing legislation enacted to reform and improve the regulation of Fannie Mae and Freddie Mac, strengthen neighborhoods hardest hit by the foreclosure crisis, enhance mortgage protection and disclosures, and maintain the availability of affordable home loans.
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