HUD allocates more than $24M for affordable housing in New Jersey
Historic allocation through Housing Trust Fund will help states produce more affordable housing for extremely low- and very low-income households
WASHINGTON, DC – The U.S. Department of Housing and Urban Development (HUD) this week announced the allocation of $689,565,492.92 through the nation’s Housing Trust Fund (HTF) for affordable housing. New Jersey was allocated $24,354,671.
The Housing Trust Fund was launched in 2008 as an affordable 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 low- and extremely low-income households, including families experiencing homelessness.
To view the complete list of state allocations, click here.
“This past year has reminded us just how important it is to have access to safe and stable housing. But too many Americans are struggling to keep or find an affordable home,” Secretary Marcia L. Fudge said. “We are excited to announce this historic funding allocation, which will enable states to expand and preserve affordable housing for our neighbors who need our support the most.”
“Today’s historic funding announcement will bring over $24 million at a crucial time to the Garden State,” said Justin Scheid, HUD Newark Field Office Director. “With this additional funding, cities and communities across New Jersey will be able to increase and preserve decent, safe, and sanitary affordable housing for our neighbors who need support the most.”
The Housing Trust Fund is capitalized through the contributions made by Fannie Mae and Freddie Mac. This year’s allocation is a significant increase in funding from last year’s allocation of $322,564,267.66. This program is specifically focused on housing for some of our most vulnerable populations. HUD annually allocates HTF funds by formula. A state must use at least 80 percent of each annual grant for rental housing; up to 10 percent for homeownership; and up to 10 percent for the grantee’s reasonable administrative and planning costs.
HTF funds may be used for the production or preservation of affordable housing through the acquisition, new construction, reconstruction, and/or rehabilitation of non-luxury housing with suitable amenities. All HTF-assisted units will be required to have a minimum affordability period of 30 years. The Housing Trust Fund has supported the construction or rehabilitation of 775 rental units nationally since the first were allocated in 2017. There are currently 480 additional projects under construction. This year’s funding is expected to produce more than 5,400 additional affordable units.