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FHFA Announces Dramatically Decreased Allocations to HTF, CMF

Wednesday, February 28, 2024 - 2:42PM

The Federal Housing Finance Agency (FHFA) today announced that the national Housing Trust Fund (HTF) and Capital Magnet Fund (CMF) will cumulatively receive approximately $301 million this year for affordable housing purposes from Fannie Mae and Freddie Mac. The HTF will receive $196 million, while the CMF will receive $105 million. The combined total is dramatically lower than in recent years–last year, $545 million was allocated and the combined CMF and HTF allocations surpassed $1 billion in both 2021 and 2022. The drop is attributed to a decline in the national housing market. The HTF allocates funding to states and state-designated entities to produce affordable housing, while the CMF competitively awards money to finance affordable housing activities, related economic activities and community service facilities. The FY 2024 CMF application round, which is expected to provide approximately $246.5 million in awards, opened Feb. 14.

This week’s episode of the Tax Credit Tuesday podcast focused on the 2024 CMF application round.

 

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