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Federal Housing Finance Agency director Mark Calabria announced the authorized disbursement of $1.09 billion for Fannie Mae and Freddie Mac's affordable housing allocations for 2020. According to a press release, this is the largest amount ever disbursed and more than double what was provided in the previous year.
"The more than $1 billion disbursed today will help produce and preserve affordable housing throughout the country. The record increase in house prices last year exacerbated the affordable housing shortage. To help increase the supply of affordable housing in our communities, FHFA remains steadfast in support of the Housing Trust Fund and Capital Magnet Fund," said Calabria.
According to the FHFA, ff the Enterprises' provided funds, $711 million will go to the U.S. Department of Housing and Urban Development for the Housing Trust Fund, an increase from the $326.4 million disbursed for 2019. The sum of $383 million will go to the Department of the Treasury for the Capital Magnet Fund, an increase from the $175.8 million disbursed for 2019.
The Housing Trust Fund is overseen by the HUD and allocates money annually to states and state-designated entities for the production or preservation of affordable housing through the acquisition, new construction, reconstruction and rehabilitation of non-luxury housing.
The Capital Magnet Fund is overseen by Treasury and competitively awards money to finance affordable housing activities, as well as related economic development activities and community service facilities.