Frequently Asked Questions

Updated April 21, 2009

I heard that the trust fund has been created

Yes. On March 30, 2009, Governor Beebe sign SB396 into law that allowed for the creation of a state housing trust fund. This law is known as Act 661.

Now the trust fund has been created, how is it funded?

This authorizing legislation represents a key first step toward making affordable housing a reality for more Arkansans. The next significant step is to secure a source of revenue for the Arkansas State Housing Trust Fund. The coalition will be seeking a permanent dedicated revenue source for the Trust Fund in the next legislative session. In the meantime, the coalition hopes to obtain a “start-up” source of funding for the Trust Fund for 2009-2010 in the range of $2 million to $3 million. This amount will support the process to establish the rules and regulations for the Trust Fund and will fund a few initial projects. One key benefit is that Housing Trust Funds on average leverage $7 in private and other funding for every $1 in state funding.

What is a housing trust fund?

Housing Arkansas was formed in 2008 to address our state's crucial housing needs for low to moderate income Arkansans. The coalition is comprised of more than 100 affordable housing advocates in the private, government and non-profit sectors from across the state. Mary Brooks, a leading national housing trust expert of the Center for Community Change, has provided technical assistance on how to campaign, create and implement funding. Housing Arkansas is funded by contributions and in-kind services from the coalition.

What price is considered "affordable" housing?

There is no certain price that can be named, since factors such as income, family size and needs are unique to each family. What is meant when we refer to "affordable housing", is that a family spends no more than 30% of their income on housing. This definition was established by HUD.

Is the housing trust fund really just a welfare program?

No, the funds will not go to individuals or families. It would be more accurate to call it an economic and community development activity. While the programs will lead to better housing conditions for low-income families, funds will be granted to qualified private sector businesses, nonprofit groups, and/or public sector groups for use in activities that will improve the housing market in the Arkansas. This stimulates the economy, creates jobs, generates state and local revenue, and makes Arkansas communities better. So, everyone benefits.

How much money is needed?

The annual revenue goal is $10 -15 million that will be collected from a public revenue source. Who oversees the housing trust fund? The Arkansas Development Finance Authority (ADFA) will administer the fund. A Housing Trust Fund Advisory Committee will work with ADFA staff to draft program rules, regulations, compliance issues and other funding priorities that will be submitted ADFA Board for final approval on all fund matters.

Who is on the housing trust fund advisory committee?

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. why is a housing trust fund different from other housing programs? The unique aspect of a housing trust fund is the ongoing, dedicated revenue source. This ensures that state investment is committed rather than occasional and can ensure that safe affordable housing opportunities can be provided for Arkansans.

What type of "housing activities" are eligible?

HTF 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 not be limited to: affordable housing projects consisting of new construction or rehabilitation of rental or homeownership housing; rental assistance; land acquisition; pre-development costs; infrastructure; transitional housing; down payment assistance; housing and foreclosure counseling and technical assistance.

How will funds be distributed?

The ADFA Board will determine who will receive the funds based on a competitive scoring process with the recommendations of ADFA staff and the Housing Trust Fund Advisory Committee.

Does affordable housing mean unattractive, cheaply built high density apartment buildings?

No, quality affordable housing developments like those the trust fund would assist in developing are designed by skilled architects to be attractive and to fit into the neighborhoods in which they are built. Affordable housing can be single-family detached structures or any multifamily structures ranging from duplexes to large scale apartment complexes. Decisions and authority to permit, zone, etc. are that of local government. Zoning ordinances and local officials will determine the density appropriate for the existing infrastructure at the site where such housing is proposed.

Who is eligible to receive funds from a housing trust fund

?Eligible recipients of the trust fund dollars will include the following: local government; public housing authorities; nonprofit organizations; non-profit and for-profit housing developers


Where will the money in the trust fund come from?

Ultimately, that will be decided by the legislature.

How can I or my organization find out more information and/or get involved?

You can contact, Lou Tobian,Housing Arkansas Chairman at 501-217-1638.