approved

Funding for the trust fund was to come from Fannie Mae andFreddie Mac and possibly the expansion of the Federal HousingAdministration's home equity conversion mortgage product, as wellas any other sources that could later be identified. The nationaltrust fund, as it is called, would reserve at least 75% of themoney for households that are extremely low income, earning lessthan 30% of an area's median income. Legislation to establish thetrust fund, and its capital sources, passed last year in the Houseof Representatives.

Originally, it had been expected that the fund would not becapitalized for about a year, with the money from Fannie andFreddie expected to be devoted to other related projects, such ashousing on the Gulf Coast, Linda Couch, NLIHC deputy director,tells GlobeSt.com. The Senate version of the bill is extending thatwaiting period for another two years to pay for the mortgagebailout plan. Half of the money originally intended for the housingtrust fund will be diverted in the first year it had expected toreceive funding, and 25% in the second year. After that point, thefunds will go to the housing trust fund. "We will be looking toidentify other sources of funding in the meanwhile," Couchsays.