Senators Urge FHFA's Watt to Fund Affordable Housing

WASHINGTON, DC-Some 33 Senate Democrats sent a letter to the newly-installed director of the Federal Housing Finance Agency, urging him to renew the government’s commitment to affordable housing. Specifically they asked Mel Watt to allow funding contributions to two initiatives that have been suspended almost since their inception: the National Housing Trust Fund (NHTF) and the Capital Magnet Fund (CMF). Only the latter has seen some activity since its formation five years ago.

The National Housing Trust Fund was established in the Housing and Economic Recovery Act of 2008, signed into law by President George W. Bush. The fund will–once it is capitalized that is–provide communities with funds to build rental homes affordable for extremely and very low-income households. The affordable housing community was very excited about the legislation at the time since it was meant to be a permanent program with a dedicated source of funding not subject to the annual appropriations process.