HUD Awards $400 Million Through Housing Trust Fund to Build Deeply Affordable Rental Units

WASHINGTON, DC — The United States Department of Housing and Urban Development (HUD) announced the formula distribution of $400 million in Housing Trust Fund (HTF) allocations across all 50 states, the District of Columbia, and U.S. territories.

Dedicated Capital for Extremely Low-Income Households

The Housing Trust Fund provides dedicated formula capital that state housing finance agencies must restrict entirely to constructing and preserving rental housing for extremely low-income households earning at or below 30% of Area Median Income (AMI) or the federal poverty line. The funding packages finance 4,500 deeply subsidized rental apartments reserved for low-income seniors on fixed pensions, disabled veterans, and individuals transitioning out of chronic homelessness, guaranteeing rent stays capped at 30% of household income for 30 years.

HUD Acting Secretary Adrianne Todman affirmed that increasing the supply of deeply affordable housing is the ultimate solution to America's homelessness crisis.

State Housing Finance Agencies and Tenant Advocates Praise

The National Low Income Housing Coalition (NLIHC) praised the formula release, emphasizing that HTF is the only federal housing program exclusively targeted to lowest-income renters.

State housing directors confirmed that HTF funds will be layered with 9% Low Income Housing Tax Credits (LIHTC) to break ground on multi-family developments.

Fund Disbursement Schedule

State housing agencies will receive certified HTF funds into state housing trust accounts in October 2026.