On May 3, the Department of Housing and Urban Development (HUD) allocated $382 million to states for the production and operation of housing for households with extremely low incomes. The national Housing Trust Fund’s resources can be used by states for real property acquisition, site improvements and development hard costs, related soft costs, demolition, financing costs, relocation assistance, operating cost assistance for rental housing (up to 30% of each grant), and reasonable administrative and planning costs. The funds are often paired with other state-generated or state-controlled housing resources.

Funding for the national Housing Trust Fund is not appropriated by Congress; rather, the “housing Government Sponsored Enterprises,” Fannie Mae and Freddie Mac, contribute a percentage of their new business volume to the Housing Trust Fund. Because Fannie and Freddie business volume has slowed as the home buying and refinancing market has slowed, contributions to the Housing Trust Fund have decreased. In 2022, Fannie and Freddie contributed $749 million to the Housing Trust Fund compared to $382 million in 2023.

See the new 2023 Housing Trust Fund state allocations here (this chart also includes fiscal year 2023 state allocations from HUD’s HOME and Community Development Block Grant programs). These state offices receive the national Housing Trust Funds and administer them for their states.