The Federal Housing Finance Agency (FHFA) has authorized a record-setting disbursement for Fannie Mae and Freddie Mac’s (the Enterprises) affordable-housing allocations for 2020.
FHFA Director Mark Calabria said the Enterprises will receive $1.09 billion, more than double what was provided in 2019. The U.S. Department of Housing and Urban Development will receive $711 million for its Housing Trust Fund, which allocates money annually to states and state-designated entities for the production or preservation of affordable housing through acquisition, new construction, reconstructions, and/or rehabilitation of non-luxury housing.
The Department of the Treasury will receive $383 million for its Capital Magnet Fund, which competitively 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,” Calabria said in a release. “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.”