In fact, GSEs' support--or lack thereof--of affordable housing finance last year was worse than these figures reflect, Danna Fischer, legislative director for the National Low Income Housing Coalition, tells GlobeSt.com. Fannie and Freddie pulled back substantially from their purchases of Low Income Housing Tax Credits last year, she says. Purchases of LIHTCs are not reflected in their affordable housing goals, according to Fischer. However the GSEs presence in this market is essential; there are few other buyers that can equal their purchasing power. Furthermore, the value of the tax credits have dropped over the last year, eroding even more their impact.

Fischer notes that there are several new government aid programs to assist low income people with their housing needs, including the Obama Administration's mortgage relief proposal.

Also, affordable housing advocates have put forth their own financial solutions. At the beginning of the year, for example, New York State Division of Housing and Community Renewal announced it would create a new Upstate Equity Fund that would be managed by Great Lakes Capital Fund. More recently, the non-profit MacArthur Foundation contributed $32.5 million in seed funding to launch a program that will preserve some 70,000 affordable rental homes in 12 cities and states. Federal and state funds will bring the total amount of the program to $147 million.