The Federal Housing Finance Agency (FHFA) has announced the disbursement of $1.09 billion for Fannie Mae and Freddie Mac's affordable housing allocations for 2020, marking the largest amount ever disbursed, more than double what was provided last year.
Approximately $711 million will go to the U.S. Department of Housing and Urban Development (HUD) for the Housing Trust Fund, an increase from the $326.4 million disbursed for 2019. The sum of $383 million will go to the U.S. Department of the Treasury for the Capital Magnet Fund, an increase from the $175.8 million disbursed for 2019.
“The more than $1 billion disbursed today will help produce and preserve affordable housing throughout the country,” said FHFA Director Mark Calabria. “The record increase in house prices last year exacerbated the affordable housing shortage. To help increase the supply of affordable housing in our communities, FHFA remains steadfast in support of the Housing Trust Fund and Capital Magnet Fund."
Managed by HUD, the Housing Trust Fund allocates money annually to states and state-designated entities for the production or preservation of affordable housing through the acquisition, new construction, reconstruction, and/or rehabilitation of non-luxury housing.
Overseen by the U.S. Department of the Treasury, the Capital Magnet Fund awards funds to finance affordable housing activities, as well as related economic development activities and community service facilities.
The FHFA continues to provide relief to the U.S. housing market as just last week, the Agency extended its COVID-19 mortgage relief policies, extending temporary measures (previously set to expire March 31) until the end of June to all federally-backed mortgages through the same period.