Thursday, Jul 14 2011 3:45PM
House lawmakers have passed a bill which would cut the National Housing Trust Fund.
This week the Capital Markets and Government Sponsored Enterprises subcommittee of the House Finance Committee approved a measure to eliminate the National Housing Trust Fund (NHTF).
The program was intended to provide
affordable housing assistance by building or rehabilitating rental properties for low-income residents across the country. It was created in 2008 through the Housing and Economic Recovery Act and was intended to be funded through Fannie Mae and Freddie Mac, but was never capitalized.
California Representative Edward Royce, who introduced the bill, said the program was unnecessary, and would duplicate many of the efforts by other
housing assistance programs.
A proposed amendment, which would have preserved the program by separating it from the two mortgage giants, was narrowly rejected.
Other housing groups have spoken out disputing claims the NHTF is a redundant program. During testimony to the committee in May, National Low Income Housing Coalition President Sheila Crowley said while there are many government housing programs, the NHTF is designed to help those who aren't served by the U.S. Department of Housing and Urban Development.