The U.S. Department of Housing and Urban Development (HUD) recently designated the Louisiana Housing Corporation (LHC) as a recipient of $3 million in federal funding under the National Housing Trust Fund (NHTF). 2016 is the first year that funding has been made available under this program, and now is a critical time to demonstrate Louisiana and other states’ ability to effectively use trust fund dollars.
LHC is soliciting input on what the public considers the best means of distributing these funds; how recipients should be selected and what qualifications they should have; distribution preferences based on geographic diversity; and how within the federal guidelines these funds should be used.
Examples of eligible areas of costs are those associated with the construction of affordable housing such as:
(a) Development hard costs
(b) Demolition associated with the construction
(c) Utility Connections
(d) Acquisition costs
(e) Related soft costs
(f) Operating cost assistance and operating cost assistance reserves
This list is not meant to be all inclusive and is intended to provide a framework. Comments may be sent in at any time, but to be considered for the upcoming National Housing Trust Fund Allocation Plan must be received no later than June 8, 2016
or can be discussed at a public hearing scheduled for June 9. Please submit your comments to HOME@lhc.la.gov.
Background on the NHTF
The NHTF was established under Title I of the Housing and Economic Recovery Act of 2008, Section 1131 (Public Law 110-289) and provides funding to states to produce affordable housing for households at or below 30 percent of Adjusted Median Income.
The LHC has been designated as the State Designated Entity (SDE) for purposes of administering the NHTF Program, and Louisiana’s initial allocation is $3 million. Total funding nationwide for the first year of the NHTF has been set at $174 million and comes from an assessment on loans made by Freddie Mae and Freddie Mac.