By Taylor Kayatta, USCM Intern
July 30, 2007

The House of Representatives is one step closer to passing a National Affordable Housing Trust Fund (H.R. 2895), following a Financial Services Committee hearing on July 19. The trust fund offers new opportunities for low-income Americans and will provide great benefits to cities.

Alexandria (VA) Mayor William D. Euille testified on behalf of the Conference of Mayors, and other public interest groups. His testimony highlighted the need to follow through on the Conference’s policy calling for a National Housing Trust Fund.

Euille mentioned that cities such as Alexandria have tried in many ways to expand their low-income housing by creating their own trust funds, but that there is still not enough affordable housing in the city. He said that a federal program with more funding than localities have to expand such goals is needed.

Affordable housing is an important part of the Mayors’ 10-Point Plan: Strong Cities, Strong Families for a Strong America. The Conference of Mayors believes cities need a federal program to make housing affordable to all citizens, and supports this legislation as it will help accomplish that goal.

In addition to the Conference of Mayors, Euille testified on behalf of the National Association of Counties (NACo), The National Community Development Association (NCDA), The National Association of Local Housing Finance Agencies (NACHFA), and The National Association of County Community and Economic Development (NACCED).

The legislation specifically calls for “the construction, rehabilitation, and preservation of decent, safe and affordable housing for low-income families.”

During committee debate, supporters discussed the need for low-cost housing for many individuals, including single parents, the homeless, our nation’s veterans, and recent high school graduates. They also pointed to nearly 600 existing housing trust funds on state and local levels, arguing that a similar federal program would be sure to succeed.

U.S. Department of Housing and Urban Development Assistant Secretary for Housing Brian Montgomery, who expressed opposition to the legislation, said that programs already exist that would meet the needs of low-income people. Though he did not deny the likely success of a national housing trust fund, he was concerned with the potential loss of funds to current HUD programs.

Financial Services Committee Chairman Barney Frank (MA), who introduced the legislation, countered that the trust fund would not pose a threat to HUD because it will get funding from other sources such as government sponsored enterprises Fannie Mae and Freddie Mae.

The House of Representatives will consider the bill on the week of July 30, before the August 3 Congressional Recess.