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What is a Housing Trust Fund
To address our state's housing needs, more than 100 affordable housing advocates in the private, government and
nonprofit sectors formed Housing Arkansas in 2008. Housing Arkansas's purpose is to speak to and act on the crucial
need of safe and decent affordable housing for low income Arkansans through the creation and funding of a state
housing trust fund. A housing trust fund is a dedicated source of public revenue set aside to address the affordable
housing needs of a community. The first housing trust funds (HTF) were established in 1970 and some thirty years afterwards,
there are now 38 state housing trust funds and more than 350 city and county housing trust funds in operation.
They dedicate in excess of $750 million each year to help address critical housing needs throughout the country. Regionally,
the majority of states—Louisiana, Missouri, Oklahoma, Tennessee and Texas—have housing trust funds. Arkansas
and Mississippi do not.
Goals of the Arkansas Housing Trust Fund
- To dedicate at least $10-15 million per year for housing that is affordable to families earning a range of incomes at or below 80% of the median household income;
- To provide a flexible source of funds for communities to address their affordable housing needs;
- To help families build wealth and economic stability;
- To revitalize distressed neighborhoods and build healthy, vibrant communities by developing high quality affordable housing;
- To leverage additional private investment in Arkansas communities; and
- To contribute to economic growth through increased housing production, employment, and tax revenues.
Uses
Housing Trust Fund dollars will be used to provide grants, loans, loan guarantees, and/or loan subsidies to eligible applicants to
fund residential housing and/or related activities. Eligible activities will include, but are not limited to: affordable housing projects
consisting of new or rehabilitation, construction of rental or homeownership housing, rental assistance, land acquisition, predevelopment
costs, infrastructure, transitional housing, down payment assistance, housing and foreclosure counseling, and technical
assistance.
Benefits
Safe, stable, affordable housing promotes strong families—children are more successful in school, families have a foundation to
grow their dreams, and seniors and persons with disabilities can live with independence and dignity. Home ownership promotes
community stability—families are more invested in their neighborhoods and increase their civic participation. Moving people from
homelessness to permanent housing reduces the amount of public funding they would otherwise use. And investing in housing
creates economic opportunity in the private sector construction and housing related industries.
Administrators
The Arkansas Development Finance Authority (ADFA) will administer the fund. A Housing Trust Fund (HTF) Advisory
Committee will work with ADFA staff to draft program rules, regulations, compliance issues and other funding priorities
that submitted ADFA Board for final approval on all fund matters. The Housing Trust Fund Advisory Committee
will be comprised of 11 members selected by the governor, speaker of the house and senate president pro tem who
will serve four year terms. The committee will represent financial industry, real estate, economic development, affordable
housing developer and a beneficiary of rental or homeownership assistance. Committee members will also include
advocates who will represent the following interests: public housing, special needs (disabled, domestic violence,
or seniors), homeless, rural and consumer housing.
Applicants
Eligible applicants of the funding will include local governments, public housing authorities, non-profit organizations
and non-profit/for-profit housing developers. HTF funds will be awarded through a competitive process. Funding applications
will be evaluated by ADFA based on review criteria and a points system to be established by ADFA in collaboration
with the HTF Advisory Committee.
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