NLIHC Pressing GSE Regulator to Support Housing Trust Fund

The National Low Income Housing Coalition has sued the Federal Housing Finance Agency for failing to fund the National Housing Trust Fund that Congress created in 2008 to finance affordable housing.

“The time has long past for Fannie Mae and Freddie Mac to be supporting the National Housing Trust Fund as Congress meant for them to do,” said NLIHC president and chief executive Sheila Crowley.

Shortly after the 2008 law creating the housing trust fund was passed, the housing crash caught up with the GSEs and Fannie and Freddie were placed in conservatorship.

But the GSEs reported record profits for 2012. And the affordable housing group estimates the GSEs should contribute $282 million to the housing trust fund.

Yet, FHFA acting director Edward DeMarco continues to suspend payments to the NHTF, according to the coalition.  

“The delay caused by the Federal Housing Finance Agency is unconscionable given the growing shortage of housing that is affordable for the lowest income Americans. The National Low Income Housing Coalition is taking this action today in hopes these critical resources can be put to use as soon as possible,” Crowley said.

FHFA had not responded to a request for comment in time for this deadline.