A pandemic-fueled mortgage boom is prompting states to receive nearly $700 million in federal grants from a special program for low-income housing, more than double the amount distributed last yearWASHINGTON -- Thanks to a pandemic-fueled mortgage boom, states will get nearly $700 million in federal grants from a special program for low-income housing, more than double the amount distributed last year. It’s a boost that the Department of Housing and Urban Development says should produce a tangible leap forward in government low-income housing plans across the country. The Housing Trust Fund, administered by the department, will disburse the money to state governments for the construction, maintenance and restoration of low-income housing. Established in 2008, the Housing Trust Fund started making payments to state governments in 2016, and is fueled by a sliver of the proceeds from the parallel federal mortgage programs, Fannie Mae and Freddie Mac. “These are critically needed resources to build and preserve housing for our most vulnerable people.”Yentel said the Housing Trust Fund is off to a good start in its first few years of operation.

Source: ABC News April 06, 2021 04:38 UTC