The National Housing Trust Fund is finally receiving funding from Fannie Mae and Freddie Mac. The housing fund was created in 2008 to create affordable housing for low income and homeless Americans.
Ever since the fund's creation, regulations have prevented Fannie Mae and Freddie Mac from contributing to it. But because of their financial stability, the Federal Housing Finance Agency has now allowed the two agencies to contribute funding for housing projects.
Those housing projects aim to help provide housing for the homeless.
Rachael Myers, director of Washington Low Income Housing Alliance, estimates around $325 million will be dispersed to the states in 2016. As part of the housing fund, 75 percent of the money must be spent on people with income levels at 35 percent or less of the median American income. The contributions from Fannie Mae and Freddie Mac expect to be anywhere between $300 to $500 million annually.
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To put the numbers in perspective, if the trust fund were to be fully funded, it could create more than 1 million affordable housing units over 10 years, according to ThinkProgress.
Yet, House Republicans could turn the page on the start of the annual donation. Rep. Ed Royce (R-Calif.) plans to introduce a bill that would block the two agencies from contributing money to the trust fund.