The Buzz: Housing Bill Taps Fannie, Freddie for Housing Trust Fund, Capital Magnet Fund
Date Published: 09/04/2008
Author: Buzz Roberts, LISC Senior Vice President for Policy
"The Buzz" from the September 2008 issue of Novogradac Journal of Tax Credit Housing.
The recently enacted Housing and Economic Recovery Act of 2008 requires Fannie Mae and Freddie Mac to contribute to two new, complementary but distinct resources for low-income housing tax credit (LIHTC) and other affordable housing and community development activities: a Housing Trust Fund and a Capital Magnet Fund. Neither fund would see any money before 2010, but by 2012 they could be receiving a combined $500 million to $700 million. The new regulator for Fannie and Freddie could suspend contributions temporarily to protect the agencies’ fi nancial stability or capital adequacy.
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This article first appeared in the September 2008 issue of the Novogradac Journal of Tax Credit Housing and is reproduced here with
the permission of Novogradac & Company LLP.
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Topics: Housing, --Affordable Housing Finance & Development, Policy, --Housing
Type: Trade Article