All of the National Housing Trust Fund dollars will go directly to states, the District of Columbia and the territories. No state, nor the District of Columbia, will receive less than $3 million. There is currently no requirement for matching funds in order to receive funds from the National Housing Trust Fund. The NHTF will be administered by the U.S. Department of Housing and Urban Development (HUD).
On December 4, 2009, HUD issued proposed rules defining the distribution formula. The notice and comment period on the rule closed on February 2, 2010, and we are awaiting publication of the final formula rule. The Office of Policy Development and Research (PD&R) at HUD published The Impact of Formula Allocation Discretion in the Housing Trust Fund in Cityspace (Vol 12, Iss 1), that includes estimates of the allocations that each state and insular area will be awarded based on the proposed $1 billion allocation to the NHTF. Click here to download the article; a table of estimated allocations is on page 5. HUD will release actual allocation amounts after the NHTF receives its funding appropriation.
HUD is using five factors in the Distribution Formula. They are:
- The ratio of the shortage of affordable and available rental units for extremely low income renter households in the state to the aggregate shortage in all the states.
- The ratio of the shortage of affordable and available rental units to very low income renter households in the state to the aggregate shortage in all the states.
- The ratio of extremely low income renter households in the state living with either incomplete kitchens or plumbing facilities, more than one person per room, or paying more than half of their income for housing costs to the aggregate number in all the states.
- The ratio of very low income renter households in the state paying more than half of their income on rent compared to the aggregate number in all the states.
- The cost of construction or building rehabilitation in the state relative to other states.
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