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75 75 75 INVESTMENT GOVERNMENT PROPERTY PRESERVATION Journal Follow Us At: @DSNewsDaily GSES MAKE MAJOR INVESTMENT IN AFFORDABLE HOUSING PROGRAMS e federal Housing Trust Fund and the Capital Magnet Fund are getting a huge cash infusion from the Federal Housing Finance Agency to the tune of about $545 million to fund affordable housing programs and initiatives from Fannie Mae and Freddie Mac (the GSEs). "e need for more affordable housing has never been greater," Director Sandra L. omp- son said. "A portion of every loan purchased by the Enterprises is allocated to the Housing Trust Fund and the Capital Magnet Fund, which provide resources that increase the production and preservation of affordable housing options in our communities." e Housing Trust Fund (HTF), overseen by the U.S. Department of Housing and Urban Development, will receive $354 million. is fund was established in the aftermath of the Great Recession in 2008; it is a formula grant program administered by individual states. Grantees are required to use at least 80% of each annual grant for rental housing; up to 10% for homeownership housing; and up to 10% for the grantee's reasonable administrative and planning costs. HTF funds may be used for the production or preservation of affordable housing through the acquisition, new construction, reconstruction, and/or rehabilitation of nonluxury housing with suitable amenities. All HTF-assisted rental hous- ing must meet a 30-year affordability period. e Capital Magnet Fund (CMF), overseen by the U.S. Department of the Treasury, will re- ceive $191 million. e CMF offers competitively awarded grants to finance affordable housing solutions and community revitalization efforts that benefit low-income people and communities nationwide. At least 70% of Capital Magnet Fund dollars must be used to finance affordable housing, and recipients may use up to 30% of funds to finance economic development activities linked to affordable housing. Funding is also used to promote activity in geographically diverse areas of economic distress and can go to any commu- nity regardless of population. e program also touts a $20 return on every $1 of funding and has created 43,000 affordable homes and 37,600 rental units. By law, amounts allocated to these funds are based on the GSEs' new business purchases. Market conditions in 2022, including higher interest rates, reduced the Enterprises' total new business purchases compared to the previous year.