Policy & Legislation
Federal GSE Legislation Passes House Committee
On Thursday, March 29, 2007, the Housing Financial Services Committee passed H.R. 1427, the GSE reform bill. Introduced by committee chair Barney Frank, D-MA, with bipartisan support, the bill would create the Affordable Housing Fund to fund the production and preservation of homes affordable to very-low and extremely-low-income households.
Fannie Mae and Freddie Mac each will contribute to the fund. Their contribution will equal 1.2 basis points of each entity’s total outstanding mortgages each year from 2007-2011. HUD will allocate the funds to states based on population, home costs, the percentage of very-low and extremely-low income families, and other factors.
Funds must be used for rental or ownership homes for very-low and extremely low-income households.
Contact: www.nlihc.org.
