The Housing and Economic Recovery Act of 2008 (HERA) establishes a Housing Trust Fund (HTF) to be administered by HUD. The primary purpose of the HTF is to provide grants to state governments to increase and preserve the supply of affordable rental housing for extremely low income (ELI) households, defined as those earning thirty (30%) percent or less of area median income (AMI), including homeless families. The HTF is funded by an assessment on all business booked by Fannie Mae and Freddie Mac. HTF and other programs are funded through an affordable housing set-aside which is equal to 4.2 basis points of the new mortgage purchases.  To access all regulations associated with HTF funds please refer to the Code of Regulation, Title 24, Part 93 (24 CFR Part 93).

Nevada Housing Division (NHD) is responsible for the administration of the HTF for the State of Nevada. Along with 23 other states and Washington D.C., Nevada usually receives the small state minimum allocation, currently $3,000,000 for each program year. This award is based on HUD’s formula allocation for HTF which takes into account ratios regarding the amount of affordable housing units and ELI units with proper accommodations, amount of standard affordable housing units, amount of low income and ELI households that are living in substandard units and amount of rent burdened very low income households. To learn more about HUD’s HTF allocation process please see 24 CFR Part 93.50- 93.54. HTF are distributed throughout Nevada through a competitive application process. HTF funding priority is awarded to those properties who are successful in securing a Low Income Housing Tax Credit (LIHTC) allocation and for developing high quality, safe, decent housing affordable to households with extremely low income that increase the availability of housing with supportive services, including those for veteran households. In addition funding for new construction, acquisition and rehabilitation or conversion projects that add to Nevada’s affordable housing inventory are prioritized.

NHD releases the HTF applications in the spring for review in late spring/early summer with potential funding release in the late fall/winter. HTF applications have closed for the current 2020 year.

Since its inception in 2016, Nevada’s HTF program has supported projects located in Southern and Northern Nevada for a combined 201 units of newly constructed or rehabilitated affordable rental housing. In addition, NHD is in the process of funding a new construction project that will result in the creation of 480 units of affordable housing in Southern Nevada. 

Please contact Martha Bredemeier with the Nevada Housing Division at mbredemeier@housing.nv.gov for more information on the Housing Trust Fund.