Policy & Legislation
Representative Frank Proposes Source for $1 Billion National Trust Capitalization
July 01, 2009
Congressman Barney Frank, chair of the House Financial Services Committee, has identified a new source of funds within the purview of his committee that could capitalize the National Housing Trust Fund (NHTF). Last Friday, Frank officially introduced H.R. 3068, the "TARP for Main Street Act of 2009," which would direct $1 billion to the NHTF. A hearing on the bill is expected on July 9, 2009.
Congress created TARP (Troubled Asset Relief Program) in October 2008 as part of the Emergency Economic Stabilization Act to make billions of federal dollars available to struggling financial institutions. Some of those transactions are now producing dividends to the federal treasury. Chairman Frank is proposing that $1 billion of the dividends be used as initial capitalization for the NHTF.
In addition to the NHTF, the "TARP for Main Street Act" provides an additional $1.5 billion for the Neighborhood Stabilization Program, $2 billion to the Emergency Homeowner Relief Fund at HUD, and $2 billion for a program that HUD would develop to prevent the loss of multifamily developments that are in default or foreclosure, all from TARP dividends.
H.R. 3068 is cosponsored by California Representatives Maxine Waters and Dennis Cardoza, as well as Nydia Velasquez (NY).
Source: Adapted from the National Low Income Housing Coalition's June 29 Memo to Members.
