The National Affordable Housing Trust Fund Act amends the Cranston-Gonzalez National Affordable Housing Act to establish a trust fund earmarked for the construction, rehabilitation, and preservation of 1.5 million units of affordable housing over the next ten years. The Secretary of Housing and Urban Development (HUD) would distribute funds to states and localities; the funds are then routed to eligible recipients including state and local government agencies and qualified for-profit, non-profit, and faith-based organizations. Seventy-five percent of the trust fund is to be used to sponsor affordable housing for “very low-income” households (defined as those making less than 30% of state or local median income) The act establishes criteria to ensure that funds for new housing construction are used for projects that promote economic integration, community revitalization, and links to economic opportunities, public transportation and services. The annual value of the trust fund will be between $800 million and $1 billion, according to the Congressional Budget Office. This money comes from a variety of sources, including a system of resource matching, diversion of already appropriated funds and new legislation. Organizations would be required to match a certain percentage of granted funds depending on whether the resources are from the federal or State and local level. Prior legislation would require government sponsored mortgage companies Freddie Mac and Fannie Mae to contribute a portion of their mortgage portfolios to the fund, with further funds coming from the excess profits of the Federal Housing Administration’s Mutual Mortgage Insurance Fund.
The Middle-Class Position:
The Middle Class Supports. For low-income workers striving to work their way up to a middle-class standard of living, the soaring cost of housing – for renters as well as owners – is a daunting obstacle. More than one out of every seven American households spends more than half their income just to keep a roof over their heads. What’s more, the lack of affordable housing extends not only to traditionally high-cost areas on the East and West coasts, but into the metro areas of cities like Indianapolis and Denver as well. In this case, the market has simply failed to meet a critical human need. This legislation provides a streamlined means for the public to fund low-income housing that will not be created by any other means. Channeling funds through states and localities provides the flexibility to meet local needs, while the strong federal criteria for the types of projects that are eligible ensures that the trust will benefit those who need it most. The establishment of a National Affordable Housing Trust fund to build, repair, and maintain housing will help more than a million American families find safe, stable homes – a prerequisite for working towards the middle class.
From the Experts:
“Today is a very hopeful day for low income people in the United States, and it is important to remember who they are. . .They are people who work at the low-wage jobs that enable many others to do their jobs. They are child care providers, nursing home aids, hotel housekeepers, office cleaners, retail clerks and receptionists. And, they are elderly and disabled people with fixed incomes whose physical, emotional, financial and social well-being are compromised and damaged every day because they cannot afford even modest safe and healthy homes.” -Sheila Crowley, President, the National Low-Income Housing Coalition (October 10, 2007)
“The National Coalition for the Homeless, the oldest national group dedicated to preventing and ending homelessness, strongly believes that each member of society, including people experiencing homelessness, has a right to decent, accessible, affordable, and permanent housing. It is society’s responsibility to provide such housing for those who can not secure it through their own means. The passage of the National Affordable Housing Trust Fund Act of 2007 is an integral part in the assurance of affordable housing to all low-income individuals and the end of the affordable housing crisis in the Unites States.”-National Coalition for the Homeless (July 1, 2007)
Beyond this Bill:
This legislation represents a common-sense step to provide sorely needed affordable housing for the nation’s lowest-paid workers. Yet the Senate has threatened a filibuster and President Bush has vowed to veto, concerned about the increase in spending. Hardworking families struggling to move toward the middle class deserve better.
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