Housing Trust FundsFinancing Permanent Supportive Housing Andrew Baldwin Associate Director, Project Development & Finance Corporation for Supportive Housing July 15, 2011
Defining Housing Trust Funds Housing Trust Fund – funding source capitalized through ongoing dedicated sources of public funding to support the preservation and production of affordable housing. Exist at the city, county, and state levels. Established by elected gov’t bodies.
Defining Housing Trust Funds Administered by gov’t entities (state HFAs or city/state depts) or quasi-public entities. Distributed through RFPs/NOFAs or programs.
Dedicated funding streams – ideally, with annual transfers (at minimum)
Promote local funding priorities – ideally targeting those with greatest need
How HTFs are Funded HTFs are funded in a variety of ways, typically related to real estate: Real estate transfer tax Document recording fee Interest on real estate escrow accounts GO Bonds General Revenue Sometimes HTFs receive initial capitalization
HTFs’ Role in Financing PSH HTFs have played important roles in many communities in funding permanent supportive housing. Three examples (capital): IL Affordable Housing Trust Fund LA Housing Trust Fund NJ Special Needs Housing Trust Fund
IL Affordable Housing Trust Fund Created by IL legislature in 1989 Funded through half of the state real estate transfer fee Yields approximately $20-22 million each year Funds acquisition/rehab, new construction, adaptive reuse, special needs housing, TA for nonprofits
LA Housing Trust Fund Created in 2000 by Mayor and City Council of City of Los Angeles Initial capitalized with $5 million seed money Provides long-term loans for construction/rehab of affordable housing Funded from various sources including HOME, RDA, and general funds
NJ Special Needs Housing Trust Fund Established in 2005; administered by NJ Housing and Mortgage Finance Agency $200 million initial funding, funded by bonds backed by traffic fines Finances construction of permanent supportive housing Provides up to 80% of capital financing in projects
To learn more about supportive housing visitwww.csh.org