Fannie Mae and Freddie Mac will disburse $1.09 billion in affordable housing grants for the year – more than double the funding released last year, the Federal Housing Finance Agency announced Monday.
The U.S. Department of Housing and Urban Development’s Housing Trust Fund will receive $711 million, while $383 million will go to the Treasury Department’s Capital Magnet Fund.
The Housing Trust Fund allocates money annually to states and state-designated entities for the production or preservation of affordable housing through the acquisition, new construction, reconstruction, and rehabilitation of housing. The Capital Magnet Fund awards money to finance affordable housing activities, as well as related economic development activities and community service facilities.
“The more than $1 billion disbursed today will help produce and preserve affordable housing throughout the country. The record increase in house prices last year exacerbated the affordable housing shortage. To help increase the supply of affordable housing in our communities, FHFA remains steadfast in support of the Housing Trust Fund and Capital Magnet Fund,” FHFA Director Mark Calabria said.