Barry Jacobs over at Affordable Housing Finance reports this progress as of today:
The House Financial Services Committee has approved legislation (H.R. 2985) to create a national affordable housing fund, bringing advocates one step closer to their goal of a dedicated funding source for housing aid.
The funding is still contingent on the passage of government-sponsored enterprise (GSE) reform and Federal Housing Administration (FHA) modernization legislation, which would channel money from Fannie Mae- Freddie Mac portfolio holdings and FHA premium revenue into the trust fund. Those sources are expected to provide $800 million to $1 billion annually for affordable housing.
“The growing shortage of affordable housing is one of the most serious social and economic problems facing our country,†said Financial Services Committee Chairman Barney Frank (D-Mass.) after the committee approved the bill, 45-23. “Given our severely constrained fiscal realities, we are today doing the best we can to address this—creating a lowincome housing trust fund that will be paid for in ways that do not draw from federal tax revenues.â€