Housing
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
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 600
housing trust funds
Growth of Housing Trust Funds
600
500
400
Number 300
200
100
0
1980
1990
2000
Year
2007
There are 38 states with
housing trust funds
Homeless Trust Funds
Homeless trust funds have been
created in Washington; Nebraska;
New Jersey; Georgia; Wisconsin;
Dade County, FL; Kalamazoo City
& County, MI; and counties in
Missouri.


Other housing trust
funds commit some
resources to address
the needs of the
homeless population.
Ten year plans to end
homelessness are
connecting to housing
trust funds.
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.


They may be either decision-making or advisory boards.
These boards are appointed and have broad representation from the
affordable housing community.
 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,
Maine, Nebraska, Nevada,
New Jersey, South Carolina,
Vermont
Interest from escrow accounts
Connecticut, Maryland,
Minnesota, Washington,
Wisconsin
Document recording fees
Delaware, Illinois,
Kentucky, Missouri, Ohio,
Washington
Lottery earnings
Oregon
Interest from Unclaimed,
Unnamed Property Fund
Arizona
Bond and fee revenues
Kansas, Nevada,
New Hampshire
Capital budget funds
Washington
State Housing Trust Fund
Revenues
Annual Revenues
Annual Revenues Generated by
State Housing Trust Funds
$100,000,000+
$50-$100,000,000
$25-$50,000,000
$10-$25,000,000
$5-$10,000,000
$1-$5,000,000
< $1,000,000
$0
0
2
4
6
8
Number of Housing Trust Funds
10
Top $ State Housing Trust Funds
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Florida: Documentary stamp tax
New Jersey: Real estate transfer
tax
District of Columbia: Deed
recordation & transfer tax
Illinois: Real estate transfer tax
Washington: Capitol budget
New Jersey SN: Bonds backed by
traffic fines
Ohio: Document recording fee
Arizona: Unnamed, unclaimed
property fund
Illinois RS: Document recording
fee
Cities and Counties Commit
Dozens of New Revenue Sources
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
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document recording fees
real estate excise tax
sale of government owned
land
condominium conversion
fees
contributions from taxexempt mortgage revenue
bond projects
hotel/motel taxes
filing fees property sales
disclosure forms
building permit fees
real estate transfer taxes
impact fee on new
commercial construction
tax increment revenues
parking garage proceeds
 restaurant tax
 inclusionary zoning in-lieu fees
 property tax
 sales tax
 court settlements
 casino revenues

City Housing Trust Funds
Revenue Generated
Annual Revenues
Annual Revenues Generated by
City Housing Trust Funds
$25,000,000+
$10-$25,000,000
$5-$10,000,000
$1-$5,000,000
<$1,000,000
$0
0
5
10
15
20
Number of Housing Trust Funds
25
County Housing Trust Funds
Revenues Generated
Annual Revenues
Annual Revenues Generated by
County Housing Trust Funds
$10,000,000+
$5-$10,000,000
$1-$5,000,000
<$1,000,000
$0
0
2
4
6
8
10
Number of Housing Trust Funds
12
Why Dedicate Public Revenues
to Affordable Housing

Affordable housing is
fundamental to the health of
any city.

The private market cannot
respond to homes that
require subsidies.

Affordable housing needs are
constant as long as wages
continue to lag behind.

Affordable housing requires
long-term planning and
investment.
Affordable housing cannot
be dependent on budget
surpluses.

States with Enabling Legislation
California and Iowa Fund Local
Housing Trust Funds
California voters approve bond initiative that
includes $25 million for local housing trust
funds.
Iowa passes legislation
committing $800,000 to
local housing trust
funds.
Affordable housing in California
Pennsylvania
Act 137



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Enables county
commissioners to double
recording fees for deeds
and mortgages.
At least 85% must be set
aside in a separate account.
Funds must be used to support affordable housing
efforts in the county.
15% may be used for administrative costs associated
with affordable housing.
Washington Enables Local
Housing Trust Funds

Washington HB2060
authorizes an increase in
the document recording
fee charged by counties.
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
60% of the funds stay with counties and 40% goes into
state fund for operating and maintenance costs of
housing serving very low income persons.
27 counties have responded
Washington D.C.
Housing Production Trust Fund

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Created in 2001 with
revenues from the deed and
recordation taxes.
More than 5,000 units have
been supported.
40% goes to very low
income households.
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 FY2005: home repair of 1,972
units; supportive services with
housing for 5,632 persons; down
payment assistance for 289
households; and construction of
977 homes.
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 Funds new construction and rehabilitation; down
payment/closing cost program; owner-occupied
rehab program; and multi-family projects.
Washington Housing Trust Fund


Created in 1987 to fill
the gap created by
diminishing federal
funds.
Has invested more than
$420 million in housing
creating 26,500 homes.
Bryant House

Leveraged more than $1,660 million in
private and public sector support.
Missouri Housing Trust Fund
 Created in 1994. Receives document recording fee revenue
of approximately $6 million each year.
 Uses a consolidated application form for the Housing
Trust Fund, HOME funds, and other MHDC fund balances.
 Addresses housing needs of
those earning no more than 50%
of area median income with half of
the funds serving 25% of ami.
 Last year, they assisted more
than 200 housing programs.
South Carolina Housing Trust Fund
Collects revenues from
the state real estate
transfer tax.
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Commits $16 million a
year to:
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Emergency repair
Owner occupied
rehabilitation;
Homeownership;
Acquisition;
Rental;
Supportive housing; and
Group homes.
Arizona Housing Trust Fund
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
Created in 1988 with
revenues from the 35%
of the state’s unnamed,
unclaimed property
fund.
Since 1998, the Fund has
received 55% of the
fund contingent on the
additional funds being
dedicated to rural areas
of the state.
The Fund receives about
$20 million annually in
dedicated revenues.
Vermont’s Housing and
Conservation Board
 Dual purpose of
supporting affordable
housing and conserving open
space and agricultural lands.
Funded through a dedicated portion
of the Property transfer tax and
Capital Bond funds, along with
General Fund surpluses.
Celebrating its 20th anniversary:
• $200 million in grants and loans;
• More than 1,200 projects in 220
towns;
• $750 million leveraged from
other private and public sources;
• 8,500 units of affordable housing
created and/or preserved.
Housing
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
Chicago Creates Low Income
Housing Trust Fund
All funding supports
households earning 30% of
area median income or less.
A majority of the funds
provide rental assistance.
Chicago Department of Housing
Funds also support homeless
initiatives and essential
services.
Illinois Rental Housing
Support Program
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Grants to local administering agencies to
provide subsidies to landlords that will
make housing units affordable.
Grants to developers to provide longterm operating support for housing.
Units must serve extremely and severely
low income households.
At least 10% must serve long term
operating support and 20% to rural
areas.
New Jersey Special Needs
Housing Trust Fund
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Funded with $200 million commitment of bonds
backed by proceeds from moving motor vehicle
surcharges.
Funds are used to develop permanent supportive
and other housing for persons with special needs.
•
Its goal is to help create
10,000 new meaningful
affordable housing
alternatives.
Nebraska Homeless
Assistance Program
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Combines NHAP and
HUD’s Emergency Shelter
Grant Program.
In 2004, the Program
provided nearly $2,500,000
from NHAP and another
$300,000 from ESGP.
Programs support housing,
crisis centers, youth
services, temporary housing,
and much more.
About NHAP
History, Purpose &
Funding Priorities of
Nebraska Homeless
Assistance Program
History of Nebraska
Commission on
Housing &
Homelessness
Continuums of Care
Hunger & Homeless
Week
Funding, Application
for Funding, and
Reporting
Nebraska's Plan to
Address Homelessness
Rental Housing Search
Useful Links
Georgia Trust Fund
for the Homeless
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Provided $900,000 to supplement Shelter Plus Care
funds from HUD.
Supported the development of “Progressive Hope House”
(a 70-bed substance abuse treatment facility).
Made staff support available to develop a State
continuum of Care Plan, resulting $9.2 million dollars
in funding for 28 projects
state-wide.
Advanced the state’s system
of permanent supported
housing for persons with
disabilities, especially those
with long homelessness.
Dade County, Florida
Homeless Trust

Created in 1993 to increase the
availability of housing and services
to the homeless population.

Approximately $37 million a year:
food and beverage tax ($11
million); HUD funding ($20
million); state and private sector
contributions.
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Partners with Community
Partnership for Homeless creating
Homeless Assistance Centers.
Washington Homelessness
Housing and Assistance Program
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$45 million annually from document recording fees (HB 2163 and
HB 1359);
60% stays with counties for ten year plan implementation; 40% goes
to the state’s Homelessness Grant Assistance Program;
Ten counties will implement projects to reduce homelessness
demonstrating systems change through integration with criminal
justice, social service, health, and other state and local systems; and
In 2007, will introduce peer-to-peer assistance model among HGAP
awardees.
St. Louis County, Missouri
Homeless Service Program
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The Emergency Shelter Hotline.
Referrals to emergency shelter,
rent/mortgage/utility assistance, or
other service referrals.
The Hotline is jointly funded by the
City of Saint Louis and Saint Louis
County.
A course of action to return them to
permanent housing and
independence.
Six social service agencies administer grants; conduct
classes; identify available, affordable housing; and follow-up
with families to prevent housing crisis.
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Active and emerging housing
trust fund campaigns
Housing trust funds give
affordable housing a new face

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Recognize that the
most critical
housing needs
must be addressed.
Incorporate
sustainable
housing principles:
accessibility, longterm affordability,
green housing.
Leverage funding ($1:$5-10)
bringing in additional
resources to Louisville.
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Housing is good for the Economy
The argument shifts …
NAHB documents
1,000 multi-family
homes generates
1,000+ full time
jobs, $33.5 million
in wages, and $17.8
million in tax
revenues and fees.
Lee County, Florida
documented that the need
The economic impact for more affordable housing
costs the County more than
of Philadelphia’s
$249 million annually!
trust fund is
expected to reach:
• Nearly 2,600 jobs
statewide each year.
• $80 million in
wages every year.
• Increased city and
state taxes.
Economic Benefits of a
Colorado Housing Trust Fund
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
Housing is Good for Communities
Education:
• Higher school-mobility rates affect the
entire system and cause the most harm to
children whose families have low incomes.
• Housing instability can have a direct impact
on a child’s education.
• Frequent moves can have a negative effect
on school achievement.
Health:
• Pest infestation is known to cause asthma.
• Substandard electrical problems are a danger to
children.
• Lead poisoning leads to a decrease in IQs.
• Children living in inadequate housing have
increased hospitalizations and respiratory
infections.
Reframing the
Affordable Housing
Debate
 Affordable housing is at the
We Need the People
Who Need Affordable
Housing
heart of a healthy community.
 Connect housing to other
issues: wages, health,
education.
 It’s not about the money;
it’s about priorities.
Another rent increase.
Another new neighborhood.
Another year behind in school.
HousingMinnesota
www.HousingMinnesota.org
The Sustainability of
Housing Trust Funds

An on-going government
commitment of public funds.

A community-based process to create
and sustain the fund.
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A component of housing policy that
drives innovation and cooperation.
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A flexible model that can adapt to
changing market conditions.