Housing trust fund
By law 90% of fund are to support activities that build, preserve, repair, and operate rental housing for low-and very-low income households.
[9] President Obama's FY 2011 budget called for $1 billion to capitalize a national housing trust fund, but this request was not approved.
[10] Advocates hope to establish a dedicated source of revenue so that allocations are not subject to the annual budget process.
[12] A key provision of the bill includes the collection of 10 basis points for “every dollar outstanding mortgages collateralizing covered securities” estimated to be approximately $5 billion a year.
It is proposed that the National Housing Trust Fund will then provide block grants to states to be used primarily to build, preserve, rehabilitate, and operate rental housing that is affordable to the lowest income households, and groups including seniors, disabled persons and low income workers.
The most common revenue source is the real estate transfer tax, although many other options exist depending on state laws and political restrictions.
[17] In response, California voters passed Proposition 1C in 2006, the Emergency Shelter Trust Fund Act of 2006.
By law, the Trust Fund is to receive half of the receipts from real estate transfer taxes.
[21] RCW 43.185.050 authorizes the Trust to fund proposals for new construction, acquisition, and rehabilitation as well as rent or mortgage subsidies, down payment or closing cost assistance for first-time home buyers, or mortgage insurance matching funds, social services for housing residents with special needs, technical assistance, shelters for homeless individuals, and projects making housing more accessible for households with disabilities.
[22] More detailed priorities for funding are developed by the Department of Commerce with the assistance of the Affordable Housing Advisory Board, consisting of 22 members primarily appointed by the Governor.
Currently, the Trust Fund receives revenue earned from the interest on earnest money in real estate transactions, as established by RCW 18.85.285.
[29] Napa County created its Trust Fund in 1992 to construct and rehabilitate affordable housing units.
[30] It is primarily funded through fees paid by developers (commercial or residential) in-lieu of building affordable housing, which would otherwise be required by the county's inclusionary zoning law.
[31] Since inception, the Fund has made more than $12 million in loans to support the development of 28 projects, creating more than 725 affordable housing units total, throughout the county.
The Fund is managed by the Housing & Intergovernmental Affairs Division of the Napa County Executive Office.
[33] Dade County established its Housing Trust Fund in 1984 to fund construction and rehabilitation of affordable housing for low-income households (defined by county law as below 80% of median income) and moderate-income households (80-140% of median income).
[34] Florida law Sections 201.02 and 201.031 authorizes counties to levy the surtax on documents that transfer interest on real property, with an exemption for single-family residences.
Since the program's inception, the Trust has assisted more than 7,000 first-time homeowners with low-interest second mortgages, helped construct 15,000 units of affordable rental housing.
[35] The Trust funds programs for first or second mortgages, property acquisition for affordable housing cooperatives, or new construction.
[36] Since the program's inception, the Trust has assisted more than 7,000 first-time homeowners with low-interest second mortgages, helped construct 15,000 units of affordable rental housing.
It is jointly funded through a 1% restaurant tax of food and beverages, Housing and Urban Development (HUD) Department allocations, and other public and private contributions.
The Trust claims to have created 5,000 beds of emergency, transitional and permanent housing and reduced homelessness from 8000 to 800 under its watch.
[40] In nine states (Arizona, California, Iowa, Indiana, Massachusetts, Missouri, New Jersey, Pennsylvania, South Carolina, Washington, and Wisconsin) adopted legislation encourages or enables local jurisdictions to dedicate public funds to affordable housing.
More than $81 million in linkage fees have funded the new construction or preservation of more than 6,000 units of homeownership, rental, or cooperative housing for households earning less than 80% of the median income.
Since then, Seattle voters have approved and renewed a property tax levy every seven years, four times in total.
It authorized five programs: capital grants for new construction and preservation of rental housing units, funding for operations & maintenance of existing housing, rental subsidies, assistance for homebuyers, and a loan fund for acquisitions and other related opportunities.
[43] More than half of the funding for new construction and preservation is dedicated to serving households that earn less than 30% of the area median income ($18,000 per year for an individual in 2010).
