FHFA Authorizes More than $1 Billion for Affordable Housing Funds
The Federal Housing Finance Agency (FHFA) announced today a $1.09 billion disbursement for Fannie Mae and Freddie Mac (the Enterprises) affordable housing allocations for 2020. This is the largest amount ever disbursed and more than double what was provided last year.
Congress established the Housing Trust Fund (HTF) and Capital Magnet Fund (CMF) in the Housing and Economic Recovery Act (HERA) of 2008 to support affordable housing. HERA directed the Enterprises to set aside 4.2 basis points of each dollar of unpaid principal balance of its total new business purchases and then allocate those reserved funds following each fiscal year for.
The funding is divided with the HTF receiving 65% and the CMF receiving 35%.
This year, more than $700 million will go to the U.S. Department of Housing and Urban Development (HUD) for the HTF and $383 million will go to the Department of the Treasury for the CMF.
The HTF, overseen by HUD, allocates money annually to states and state-designated entities for the production or preservation of affordable housing through the acquisition, new construction, reconstruction, and/or rehabilitation of non-luxury housing.
The CMF, overseen by Treasury, competitively awards money to finance affordable housing activities, as well as related economic development activities and community service facilities.
Latest from NAHBNow
Jul 03, 2025
Consumer Confidence Retreats in JuneAfter a strong rebound in May, consumer confidence resumed its downward trend in June. Consumers remain concerned about the economy and labor market amid ongoing uncertainty, especially around tariffs.
Jul 02, 2025
5 Proven Strategies Smart Builders Use to Grow in Any MarketSound Capital has worked with builders across market cycles for over 20 years. They have seen who thrived when others pulled back, and they've studied the strategies they used to scale while competitors were sidelined. Here are five things they all had in common.
Latest Economic News
Jul 03, 2025
Solid Job Growth in JuneThe U.S. labor market continued to show resilience in June, with steady job gains led by state/local government and health care sectors.
Jul 02, 2025
Two or More Story Home Starts Rebound in 2024Over half of new single-family homes built in 2024 were two or more stories, according the recent release of the Census Bureau’s Survey of Construction (SOC). After declining in 2023, the share of homes started with two or more stories increased again in 2024, continuing the upward trend in place since 2020.
Jul 01, 2025
May Private Residential Construction Spending DipsPrivate residential construction spending fell by 0.5% in May, marking the fifth straight month of decreases. This drop was primarily driven by reduced spending on single-family construction. Compared to a year ago, total spending was down 6.7%, as the housing sector continues to navigate the economic uncertainty stemming from ongoing tariff concerns and elevated mortgage rates.