Center for Community Change
Housing
Housing Trust Funds
Trust Funds
Mary E. Brooks
Housing Trust Fund Project
Center for Community Change
1113 Cougar Court
Frazier Park, CA 93225
661-245-0318
mbrooks@communitychange.org
www.communitychange.org
Housing Trust Funds:
… advancing how we fund
affordable housing
• Securing dedicated sources of
public revenue.
• Committing that
revenue to
support critical
housing needs.
Today … there are some
700 housing trust funds
Growth of Housing Trust Funds
800
700
600
500
Number 400
300
200
100
0
1980
1985
1990
1995
Year
2000
2005
2010
States with housing trust funds
Recent HTFund Advances
• Pennsylvania established a HTF in
2010, secured ongoing funding in
2012.
• North Dakota established a Housing
Incentive Fund in 2011, raising $7.6
million.
• Virginia used $7 million in National
Mortgage Settlement funds to
initiate a state housing trust fund.
• Alabama established a HTFund in
2012 without funding.
• Colorado established a HTFund in
2012 with $13.2 million from the
National Mortgage Settlement.
5 states establish
housing trust funds
State Housing Trust Fund Impacts
Virtually every housing trust fund can account for
economic impacts.
• A recent study in Ohio, concluded that between 2006 and
2009, the Ohio Housing Trust Fund fueled Ohio’s economy by an
estimated $2.6 billion with associated earnings of more than
$829 million for almost 32,000 workers
• Tennessee estimates that its $4 million investment in
affordable housing has been a magnate for $56.5 million
in economic impact throughout the state.
An Indiana study concluded that $20 million invested by the state
fund has leveraged more than $90 million in other funds, generated
1,600 new jobs, resulting in $52 million in new wages, and has created
nearly $83 million in income for other industries.
Colorado estimates that an investment of $26.5 million would produce:
 More than 3,200 new jobs each year.
 More than $334 million of economic activity each year.
 Formerly rent-burdened households will have an average of $2,460
of annual income per household to spend.
 New economic activity will generate more than $26 million of
annual tax revenues.
An Investment in Colorado’s Future
What it Means to Leverage Funds
From our 2007 survey of housing trust funds:
State housing trust funds $1.00 : $7.00 additional funds
City housing trust funds $1.00 : $6.50
County housing trust funds $1.00 : $10.50
An example from
Nebraska:
NDED HTFund Grant
NDED CDBG Grant
Loan Pool
NeighborWorks
NED, Inc.
City of Columbus
NIFA
Lot Sales
Total
$185,000
$315,000
$325,000
$287,655
$100,000
$60,100
$11,000
$832,500
$2,166,005
How Housing Trust Funds Work
Legislation or Ordinance
Establishes the Housing Trust Fund
Administration
Agency or Department
Oversight Board
Programs
Distribution of Funds
Program Requirements
Eligible Applicants
Eligible Uses
Dedicated Revenue Sources
Taxes or Fees
Program Generated Revenue
Interest Earned
Other Revenues
Administration
 Virtually all housing trust funds are administered by staff
of a public agency or department.
 Most housing trust funds have some kind of oversight
board.

These boards are appointed and have broad
representation from the affordable housing community.
 They may be either decisionmaking or advisory boards.
 Administrative costs can be
paid from trust fund revenues or
other public funds.
Programs
 Funds are awarded either
through a request for proposal
process; a notification of funding
availability; or direct funding of
specific programs.
 Funds are available either as
grants or loans and/or other
sources of financing.
 The application process may be
combined with other available
sources of affordable housing
funds, such as: HOME, CDBG, etc.
Program Requirements
• Eligible Applicants: nonprofit developers, for-profit developers,
housing authorities, governments, Native American tribes, etc.
• Eligible Uses: acquisition, new construction, rehabilitation,
predevelopment costs, housing related services, operating costs,
capacity building, rental assistance, foreclosure assistance, etc.
• Application
Requirements: income
targeting to control who
benefits, long term
affordability, accessibility,
leveraging, etc.
States Commit
Public Revenue Sources
Real estate transfer tax
Florida, Hawaii, Illinois,
Iowa, Maine, Nebraska,
Nevada, New Jersey,
South Carolina,
Vermont
Interest from escrow accounts
Connecticut, Maryland,
Minnesota, Washington,
Wisconsin
Document recording fees
Connecticut, Delaware,
Illinois, Kentucky,
Missouri, Ohio, Oregon,
Washington
Tobacco tax
Indiana
Interest from Unclaimed,
Unnamed Property Fund
Arizona
Bond and fee revenues
Kansas, Nevada,
New Hampshire
Capital budget funds
Washington
Why Dedicate Public Revenues
to Affordable Housing
•
Affordable housing is
fundamental to the health of any
jurisdiction.
•
The private market cannot
respond to homes that require
subsidies. No source of private
funding—foundation or
corporation—will sustain
investment in the production and
preservation of affordable
housing.
• Affordable housing is part of our
communities—we will always be
planning and providing for those
in need and keeping our
neighborhoods vibrant and stable.
• Investing in affordable
housing is good fiscal policy.
Kentucky Affordable Housing
Trust Fund
Funds are dedicated from an
increase in fees on new
mortgages, recorded deeds,
and 21 additional
instruments recorded by
County clerks.
• The Fund has provided
more than $65 million since
1994.
• Administered by the KY
Housing Corporation.
• Created 8,273 units of
affordable housing—rental
and homeownership.
• Average per-unit subsidy of
$7,974.
• Leveraged more than $234
million in other funds.
• Kentuckians have been
served in almost every
county in the state.
Nebraska Affordable Housing
Trust Fund
• Nebraska has an
Affordable Housing
Trust Fund and a
Homeless Assistance
Trust Fund.
• Since the NAHTF began
in 1998, it has:
o Awarded
$87,943,511
o Leveraged
$300,486,047
o Created 4,765
housing units
o Created 6,301 jobs
Both Funds receive
documentary stamp tax revenues.
The AHTFund is administered by
the Department of Economic
Development.
Illinois Affordable
Housing Trust Fund
o Created in 1989 and
receives 50% of the
state’s real estate
transfer tax revenues
providing as much as
$60 million annually.
o The Fund is administered by the Illinois Housing
Development Authority and distributed to regions by a
formula.
o Funds new construction and rehabilitation; down
payment/closing cost program; owner-occupied rehab
and multi-family projects.
Ohio Housing Trust Fund
Dedicates the recordation fee for
state’s trust fund, capped at $50
million annual revenue.
A majority of the funds serve
those earning no more than 50%
of the area median income.
In Fiscal Year 2010, the Ohio Housing
Trust Fund awarded nearly $29.5
million with these key
accomplishments:
• Supportive services provided to
1,363 households;
• Down payment assistance and
homebuyer counseling for 60
households;
• Construction, rehabilitation and
repair of 1,217 rental and 832
owner homes;
• Homeless prevention provided to
1,122 households;
• Business assistance provided to
56 businesses;
• Training and technical assistance
given to 8,553 households; and
• Senior service coordination
provided to 924 persons.
Iowa Housing Trust Fund
• State dedicates real estate
transfer tax revenues to the
fund.
• Local Housing Trust Fund
Account receives 60% of the
funds.
• Project Based Housing
Account may use 40% of the
funds in areas where no local
housing trust fund exists.
• Administered by the Iowa
Finance Authority.
In 2011 the Housing Trust
Fund Program had nearly $6
million available.
24 local housing trust funds
have been created
throughout the state.
Housing Trust Fund Disaster
Relief
 Texas Housing Trust Fund:
Disaster Recovery Homeowner
Repair Gap Financing Program:
up to $10,000 per household.
 Nebraska Affordable Housing
Trust Fund: up to $7,500 for
individual home repairs. In
addition, organizations were
supported for providing
assistance in selected counties.
 Florida Housing Trust Fund:
enables set-aside of funds to
provide funding where a state of
emergency has been declared.
Biloxi, Mississippi
Moving the Process Forward
Options others have taken:
• Initial capitalization:
o National Mortgage Settlement dollars
o Other options.
• Long term dedicated funding:
o Conduct your own study.
o Work with Housing Mississippi.
• Build a compelling program:
o Demands immediate funding.
o Has a dramatic impact right away.
The National Housing
Trust Fund
• The National Housing Trust Fund was
created as part of the Housing and
Economic Recovery Act of 2008.
• It will be administered by HUD and
funds will go, by formula, to a
designated state agency.
• A bill will be introduced this spring to
modify MID, creating a tax credit, and
generating dedicated revenue for the
NHTFund.
The Housing Trust Fund
Project
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Quarterly Newsletter:
www.housingtrustfundproject.org
Contact: Mary Brooks
mbrooks@communitychange.org