Title 12 › CHAPTER 46 — GOVERNMENT SPONSORED ENTERPRISES › SUBCHAPTER I — SUPERVISION AND REGULATION OF ENTERPRISES › Part B — Additional Authorities of the Director › subpart 2 — housing goals › § 4568
The Secretary of Housing and Urban Development must create and run a Housing Trust Fund. The Fund gets money from the housing enterprises under section 4567 and from any other laws that provide money. Its main job is to give grants to States to build, save, or fix rental homes for extremely low- and very low-income families (including homeless families) and to help extremely low- and very low-income families buy homes. Money from the Fund counts as federal financial help. To pay back the Treasury for certain HOPE for Homeowners payments, some allocated money in excess of a set amount must be used to reimburse the Treasury: 100 percent for calendar year 2009, 50 percent for 2010, and 25 percent for 2011. If those reimbursements end up more than the program’s net cost when HOPE ends, the extra money goes back to the original housing purposes. The Secretary must make rules and set a formula, within 12 months of July 30, 2008, to divide funds among States. States can choose certain agencies to get the grant. The formula uses five factors about shortages of affordable rental units, severe housing problems, renters paying over half their income for housing, and the State’s construction costs, and it gives strongest weight to the shortage for extremely low-income renters. The Secretary must publish notice within 60 days after deciding amounts. Each State gets the formula amount each year (except fiscal year 2009). No State or D.C. gets less than $3,000,000; if one does, other States’ shares are reduced pro rata. States must make public allocation plans, take comments, set performance goals, and follow rules for choosing projects. Funds may only pay for eligible rental and homeownership activities: at least 75 percent must benefit extremely low-income families and no more than 25 percent may benefit very low-income families; no more than 10 percent of a State’s total may be used for homeownership activities. Homebuyer help must be for first-time buyers who meet income and purchase price limits and who finish required financial counseling. States must make or commit to use funds within 2 years or the money is taken back and reallocated. Recipients and grantees must be capable and accountable; audits must happen at least annually and financials reviewed by an independent CPA. Misuse can trigger repayment, reduced grants, or other penalties. The Secretary will ban certain uses (including political activity, advocacy, lobbying, counseling services, travel, and tax-preparation advice), limit administrative costs (up to 10 percent), allow returns on loans to be reused, allow transfer to another qualified housing trust fund created after July 30, 2008, and follow federal transparency rules for reporting grants.
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Banks and Banking, Source: USLM XML via OLRC
Legislative History
Reference
Citation
12 U.S.C. § 4568
Title 12, Banks and Banking
Last Updated
Sep 23, 2026
Release point: 119-110