New Law Includes Housing Trust Fund
by Kelsey Luffman

On July 30, President Bush signed The Housing Rescue and Foreclosure Act of 2008 into law. This law is the federal government’s biggest reply yet to the widespread housing market crisis.

 

The act provides options by which homeowners confronted with foreclosure can get refinancing assistance. It expands the low-income housing tax credit system, thereby promoting the development more affordable housing units.  It also exists to build up Fannie Mae and Freddie Mac, the waning government-sponsored enterprises that own or guarantee about half the mortgages in the US. Lastly, the law creates a permanent Housing Trust Fund, which will provide up to $300 million a year for increasing the supply of rental units and other low-income housing. Money from the fund can be directly granted to nonprofit housing groups.

 

A Washington charity called The National Low-Income Housing Coalition has been campaigning for the creation of the fund since 2000. The charity’s campaign goal is to generate and maintain 1.5 million housing units over a 10-year period.

 

Some conservative groups and lawmakers object to the Housing Trust Fund aspect of the law, fearing that funds could be given to charities with political (particularly liberal) motives.

 

Either way, Michael Rubinger, president of New York charity Local Initiatives Support Corporation, says the law is “the single most important piece of housing legislation we have seen in years.”

 

Information taken from www.philanthropy.com

Back