Frank Reworking GSE AH Fund Idea

The chairman of the House Financial Services Committee, Rep. Barney Frank, D-Mass., is reworking the GSE affordable housing fund so that Fannie Mae and Freddie Mac would make annual contributions to a National Housing Trust Fund, which the National Low-Income Housing Coalition has advocated for several years.Rep. Maxine Waters, D-Calif., told the National Association of Affordable Housing Lenders about the concept and later told reporters that it is "Barney's idea" and she supports it. Annual contributions by the two government-sponsored enterprises would go to the trust fund, which would distribute grants to states, cities, and local nonprofits that put up matching funds to build and preserve affordable rental housing. The GSE contributions, estimated at $500 million a year, would provide a "substantial basis for the trust fund," said Rep. Waters, the new chair of the housing subcommittee. One source indicated that the legislation to create the National Housing Trust Fund would be on a separate track from the GSE bill to strengthen regulatory oversight of Fannie and Freddie.