Senators Susan Collins (R-ME) and Jack Reed (D-RI) sent a letter on September 27 to Federal Housing Finance Agency (FHFA) Director Mark Calabria, urging the agency to continue contributions to the national Housing Trust Fund (HTF) and Capital Magnet Fund (CMF), regardless of any housing finance reforms pursued by the administration, including recapitalization of Fannie Mae and Freddie Mac. Senators Collins and Reed are long-time champions of the national HTF and currently serve as chair and ranking member of the Senate Appropriations Subcommittee that oversees funding for HUD programs.
The letter was sent in anticipation of changes announced by the Trump administration on September 30 to allow Fannie Mae and Freddie Mac to retain up to $45 billion in aggregate capital. The HTF, created by Congress in 2008 to address the affordable housing needs of America’s lowest-income households, is funded through a small fee on the housing finance activities carried out by Fannie Mae and Freddie Mac. Under the law, the FHFA director has limited authority to halt payments to the HTF and CMF, including when such payments would prevent Fannie and Freddie from successfully completing a capital restoration plan.
NLIHC and other organizations previously weighed in with the FHFA and the Department of the Treasury to ensure funding for the HTF and CMF is not compromised. Halting payments to the HTF would prevent the creation and preservation of affordable, accessible homes for the lowest-income families.
Read the letter from Senators Collins and Reed at: https://tinyurl.com/y2h26n3g
Read the letter from NLIHC at: https://tinyurl.com/y5fd2pav
Read the letter from NLIHC and partners at: https://tinyurl.com/y4tfrw8z