HUD Dispenses $41.7M To Support Texas Affordable Housing
Roughly 16% of $689M set aside by the federal government to support affordable housing across the U.S. is slated to land in Texas.
The U.S. Department of Housing and Urban Development announced its Housing Trust Fund, which funnels money to states to support affordable housing, is sending hundreds of millions of dollars across the nation and spending roughly $41.7M in Texas alone.
HTF distributions support low-income households by funding the creation and preservation of affordable housing units. States are required to use 80% of their allocations on rental housing, 10% on homeownership and up to 10% on administrative and planning costs. The fund relies on contributions from Fannie Mae and Freddie Mac to finance affordable housing initiatives across the nation.
Since the first wave of HTF funds reached the states in 2017, the fund has paid for the construction and repair of 775 rental units nationwide, and there are now 480 projects in construction.
This year's $689M distribution — $322M larger than the amount paid out last year — is expected to create 5,400 additional housing units, according to HUD.
"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," HUD Secretary Marcia Fudge said in a statement.
The Rainbow Housing Assistance Corp., a nonprofit that supports 126 rental housing communities representing 16,384 units, is one of the firms that will benefit from the funds.
"At a crucial time when the pandemic-suppressed economy impacts all Americans, this funding is a prime example of how HUD can effectively lift up those low-income households that are most negatively impacted," Rainbow Housing Assistance Corp. Executive Director Flynann Janisse said in a statement.
"We are thankful that the Housing Trust Fund will be replenished so that our organization and others like us can continue to create and maintain safe and affordable homes for families across the country.”