center for community change mary e. brooks housing trust fund project center for community change...
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Center for Community ChangeCenter for Community Change
Mary E. BrooksHousing Trust Fund Project
Center for Community Change1113 Cougar Court
Frazier Park, CA 93225661-245-0318
Housing Trust Funds
Housing Trust Funds
Housing Trust Funds: … advancing how we
fund affordable
housing
• Securing dedicated sources of public revenue.
• Committing that revenue to support critical housing needs.
Today … there are Today … there are some 700 housing some 700 housing
trust fundstrust funds
States with housing trust States with housing trust
fundsfunds
Recent HTFund Recent HTFund
AdvancesAdvances• Pennsylvania established a HTF in 2010, secured ongoing funding in 2012.• North Dakota established a Housing Incentive Fund in 2011, raising $7.6 million. • Virginia used $7 million in National Mortgage Settlement funds to initiate a state housing trust fund.• Alabama established a HTFund in 2012 without funding.• Colorado established a HTFund in 2012 with $13.2 million from the National Mortgage Settlement.
5 states establish housing trust funds
State Housing Trust Fund State Housing Trust Fund
ImpactsImpactsVirtually every housing trust fund can account for economic impacts.
• A recent study in Ohio, concluded that between 2006 and 2009, the Ohio Housing Trust Fund fueled Ohio’s economy by an estimated $2.6 billion with associated earnings of more than $829 million for almost 32,000 workers • Tennessee estimates that its $4 million investment in affordable housing has been a magnate for $56.5 million in economic impact throughout the state.
An Indiana study concluded that $20 million invested by the state fund has leveraged more than $90 million in other funds, generated 1,600 new jobs, resulting in $52 million in new wages, and has created nearly $83 million in income for other industries.
Colorado estimates that an investment of $26.5 million would produce:
More than 3,200 new jobs each year. More than $334 million of economic activity each year. Formerly rent-burdened households will have an average of $2,460 of annual income per household to spend. New economic activity will generate more than $26 million of annual tax revenues.
An Investment in Colorado’s Future
What it Means to Leverage What it Means to Leverage
FundsFunds
From our 2007 survey of housing trust funds:State housing trust funds $1.00 : $7.00 additional fundsCity housing trust funds $1.00 : $6.50County housing trust funds $1.00 : $10.50
An example from Nebraska:NDED HTFund Grant $185,000NDED CDBG Grant $315,000Loan Pool $325,000NeighborWorks $287,655NED, Inc. $100,000City of Columbus $60,100NIFA $11,000Lot Sales $832,500Total $2,166,005
How Housing Trust Funds Work
Legislation or Ordinance Establishes the Housing Trust Fund
AdministrationAgency or Department
Oversight Board
ProgramsDistribution of Funds
Program RequirementsEligible Applicants
Eligible Uses
Dedicated Revenue SourcesTaxes or Fees
Program Generated RevenueInterest EarnedOther Revenues
Administration Virtually all housing trust funds are administered by
staff of a public agency or department.
Most housing trust funds have some kind of oversight board.
These boards are appointed and have broad representation from the affordable housing community. They may be either decision-making or advisory boards.
Administrative costs can be paid from trust fund revenues or other public funds.
Programs Funds are awarded either through a request for proposal process; a notification of funding availability; or direct funding of specific programs.
Funds are available either as grants or loans and/or other sources of financing.
The application process may be combined with other available sources of affordable housing funds, such as: HOME, CDBG, etc.
Program Requirements• Eligible Applicants: nonprofit developers, for-profit developers, housing authorities, governments, Native American tribes, etc.
• Eligible Uses: acquisition, new construction, rehabilitation, predevelopment costs, housing related services, operating costs, capacity building, rental assistance, foreclosure assistance, etc.
• Application Requirements: income targeting to control who benefits, long term affordability, accessibility, leveraging, etc.
States CommitPublic Revenue SourcesReal estate transfer tax
Florida, Hawaii, Illinois, Iowa, Maine, Nebraska, Nevada, New Jersey, South Carolina, Vermont
Interest from escrow accountsConnecticut,
Maryland, Minnesota, Washington, Wisconsin
Document recording feesConnecticut,
Delaware, Illinois, Kentucky, Missouri, Ohio, Oregon, Washington
Tobacco taxIndiana
Interest from Unclaimed, Unnamed Property Fund
ArizonaBond and fee revenues
Kansas, Nevada, New Hampshire
Capital budget fundsWashington
Why Dedicate Public Revenues to Affordable
Housing
• Affordable housing is fundamental to the health of any jurisdiction.
• The private market cannot respond to homes that require subsidies. No source of private funding—foundation or corporation—will sustain investment in the production and preservation of affordable housing.
• Affordable housing is part of our communities—we will always be planning and providing for those in need and keeping our neighborhoods vibrant and stable.
• Investing in affordable housing is good fiscal policy.
Kentucky Affordable Housing Trust Fund
• The Fund has provided more than $65 million since 1994.
• Administered by the KY Housing Corporation.
• Created 8,273 units of affordable housing—rental and homeownership.
• Average per-unit subsidy of $7,974.
• Leveraged more than $234 million in other funds.
• Kentuckians have been served in almost every county in the state.
Funds are dedicated from an increase in fees on new mortgages, recorded deeds, and 21 additional instruments recorded by County clerks.
Nebraska Affordable Housing Trust Fund
• Nebraska has an Affordable Housing Trust Fund and a Homeless Assistance Trust Fund.
• Since the NAHTF began in 1998, it has:o Awarded
$87,943,511o Leveraged
$300,486,047o Created 4,765
housing unitso Created 6,301 jobs
Both Funds receive documentary stamp tax revenues. The AHTFund is administered by the Department of Economic Development.
Illinois Affordable Housing Trust Fund
o Created in 1989 and receives 50% of the state’s real estate transfer tax revenues providing as much as $60 million annually.
o The Fund is administered by the Illinois Housing Development Authority and distributed to regions by a formula.o Funds new construction and rehabilitation; down payment/closing cost program; owner-occupied rehab and multi-family projects.
Ohio Housing Trust FundIn Fiscal Year 2010, the Ohio Housing
Trust Fund awarded nearly $29.5 million with these key accomplishments:
• Supportive services provided to 1,363 households;
• Down payment assistance and homebuyer counseling for 60 households;
• Construction, rehabilitation and repair of 1,217 rental and 832 owner homes;
• Homeless prevention provided to 1,122 households;
• Business assistance provided to 56 businesses;
• Training and technical assistance given to 8,553 households; and
• Senior service coordination provided to 924 persons.
Dedicates the recordation fee for state’s trust fund, capped at $50 million annual revenue.
A majority of the funds serve those earning no more than 50% of the area median income.
Iowa Housing Trust Fund• State dedicates real estate
transfer tax revenues to the fund.
• Local Housing Trust Fund Account receives 60% of the funds.
• Project Based Housing Account may use 40% of the funds in areas where no local housing trust fund exists.
• Administered by the Iowa Finance Authority.
In 2011 the Housing Trust Fund Program had nearly $6 million available.24 local housing trust funds have been created throughout the state.
Texas Housing Trust Fund: Disaster Recovery Homeowner Repair Gap Financing Program: up to $10,000 per household.
Nebraska Affordable Housing Trust Fund: up to $7,500 for individual home repairs. In addition, organizations were supported for providing assistance in selected counties.
Florida Housing Trust Fund: enables set-aside of funds to provide funding where a state of emergency has been declared.
Housing Trust Fund Disaster Relief
Biloxi, Mississippi
Moving the Process ForwardOptions others have taken:
•Initial capitalization: o National Mortgage Settlement dollarso Other options.
•Long term dedicated funding:o Conduct your own study.o Work with Housing Mississippi.
•Build a compelling program:o Demands immediate funding.o Has a dramatic impact right away.
The National Housing The National Housing
Trust FundTrust Fund• The National Housing Trust Fund was
created as part of the Housing and Economic Recovery Act of 2008.
• It will be administered by HUD and funds will go, by formula, to a designated state agency.
• A bill will be introduced this spring to modify MID, creating a tax credit, and generating dedicated revenue for the NHTFund.
The Housing Trust Fund Project
Sign up for our Quarterly Newsletter:www.housingtrustfundproject.org
Contact: Mary Brooks