HUD allocates $2M to help Puerto Rico produce affordable housing
The U.S. Department of Housing and Urban Development (HUD) allocated $2 million to Puerto Rico through the Housing Trust Fund, a housing production program that complements existing federal, state and local efforts to increase and preserve the supply of “decent, safe, and sanitary affordable housing for extremely low- and very low-income households, including families experiencing homelessness,” the department explained.
In all, the agency allocated $382 million to states and commonwealths.
“We’re proud to invest in states to create more affordable housing,” said HUD Secretary Marcia L. Fudge. “The Biden-Harris Administration is committed to improving the nation’s housing affordability crisis and the Housing Trust Fund provides communities resources they need to produce more safe, sustainable and affordable housing.”
HTF is a formula-based program for states and U.S. territories. By law, each state is allocated a minimum of $3 million. State affordable housing planners will use these funds for the following eligible activities:
- Real property acquisition;
- Site improvements and development hard costs;
- Related soft costs;
- Demolition;
- Financing costs;
- Relocation assistance;
- Operating cost assistance for rental housing (up to 30% of each grant); and,
- Reasonable administrative and planning costs.
The Housing Trust Fund is being capitalized through contributions made by Fannie Mae and Freddie Mac. In December 2014, the Federal Housing Finance Agency (FHFA) directed these Government Sponsored Enterprises (GSEs) to begin setting aside and allocating funds to the Housing Trust Fund. The Housing Trust Fund helps to strengthen and broaden the federal housing safety net for people in need by increasing production of, and access to, affordable housing for the nation’s most vulnerable populations.
One hundred percent of funds must be used for extremely low-income families. This targeting ensures the priority of this program is helping those with the greatest needs, the federal agency noted.
