The Housing Trust Fund (HTF) is a unique federal program authorized by the Housing and Economic Recovery Act of 2008 (HERA) to increase and preserve the supply of housing for people with the lowest incomes, including families experiencing homelessness. HTF is not subject to appropriations; instead, HERA requires Fannie Mae and Freddie Mac (the GSEs) to transfer a modest percentage of their new business to finance the Housing Trust Fund.

HUD allocates HTF funds by formula annually. A State must use at least 80 percent of each annual grant for rental housing; up to 10 percent for homeownership; and up to 10 percent for the grantee's reasonable administrative and planning costs. HTF funds may be used for the production or preservation of affordable housing through the acquisition, new construction, reconstruction, and/or rehabilitation of non-luxury housing with suitable amenities.  All HTF-assisted rental housing must meet a 30-year affordability period. All HTF-assisted homeownership housing must meet the minimum affordability period of 10, 20 or 30 years based on the amount of HTF investment in the unit.

Eligible activities:
• 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)
• reasonable administrative and planning costs

Source: HUD.gov + NCSHA.org