New Jersey National Housing Trust Fund

The National Housing Trust Fund (HTF) is exclusively targeted to help build, preserve, rehabilitate, and operate housing affordable to people with the lowest incomes. In 2016, the first $174 million in HTF dollars were allocated to states. To date, the states have received over $1.2 billion in HTF funds. The HTF is the only federal housing program exclusively focused on providing states with resources targeted to serve households with the clearest, most acute housing needs.

Rental Housing and Homeownership Opportunities. By law, 90% of HTF dollars must be used for the production, preservation, rehabilitation, or operation of affordable rental housing. Up to 10% may be used to support homeownership activities for first-time homebuyers, such as producing, rehabilitating, or preserving owner-occupied housing, as well as providing down payment assistance, closing costs, and interest rate buy-downs.

Highly Targeted To Serve Those With the Greatest Needs. The HTF is the most highly targeted federal rental housing capital and homeownership program. By law, at least 75% of HTF dollars used to support rental housing must serve extremely low income (ELI) households earning no more than 30% of the Area Median Income (AMI) or the federal poverty limit. All HTF dollars must benefit households with very low incomes earning no more than 50% of AMI. In comparison, most other federal housing programs can serve families up to 80% of AMI.

Local Decision Making and Control. Because the HTF is administered by HUD as a block grant, each state has the flexibility to decide how to best use HTF resources to address its most pressing housing needs. States decide which developments to support.

No Cost to Federal Government. Because the HTF is funded outside of the appropriations process, it has no cost to the federal government. By statute, the initial source of funding for the HTF is a slight fee (0.042%) on Freddie Mac and Fannie Mae activity, only 65% of which goes to the HTF.