From the National Council on Independent Living (NCIL), October 26, 2009
Congress created the National Housing Trust Fund In 2008 with the intention of funding it through Fannie Mae and Freddie Mac. With the economic downturn, the implosion of the housing market, and government intervention in Fannie Mae & Freddie Mac, the funding never materialized.
Two bills in the House (H.R. 3766) and the Senate (S. 1731) would set aside $1 billion for the Trust Fund as "start-up money." Both rely on funding from the Troubled Asset Relief Program (TARP), the "bank bailout" money being repaid. H.R. 3766, The Main Street TARP Act of 2009, introduced by Rep. Barney Frank (D-MA), would use unspent TARP funding. S. 1731, The Preserving Homes and Communities Act, sponsored by Senator Jack Reed (D-RI), would use the sale of warrants that the Treasury Department is holding.
The Trust Fund would provide subsidies to developers who preserve, rehabilitate and construct housing primarily for extremely low-income families. The passage of those bills would provide badly needed housing and stimulate the construction of multi-family buildings at a time when funding for these projects is difficult to obtain.
NCIL urges members to contact their Representatives and Senators in support of H.R. 3766 and S. 1731.