National Housing Trust Fund (NHTF)
National Housing Trust Fund (NHTF)
The NHTF helps to produce and preserve affordable housing for extremely low- and very low-income households.
NHTF funds are considered gap financing and shall only be provided as a recourse loan. HUD has not yet issued a final rule for NHTF program administration; however, interim guidance is available at 24 CFR, Parts 91 and 93. The NHTF program was modeled after the HOME program; therefore, Kentucky Housing Corporation (KHC) will apply all the HOME regulations to NHTF except for the following:
Affordability Period
NHTF always requires a 30-year affordability period regardless of activity type or amount of NHTF investment.
Davis-Bacon Wage Rate Requirements
Davis-Bacon wage rates do not apply.
Incomes to Be Served
The income of the targeted population cannot exceed 30% AMI
Income and Rent Limits
NHTF utilizes separate income and rent limits.
Match Requirement
NHTF does not have a matching funds requirement.
Environmental Review
The environmental provisions for new construction and rehabilitation that are required for NHTF projects under the Property Standards at 24 CFR § 93.301(f)(1) and (2) are similar to the environmental review requirements under 24 CFR Part 50 and Part 58 for the HOME program. HUD has published CPD Notice 16-14 that provides guidance on how to meet the HTF environmental provisions. The Notice also explains how environmental reviews under 24 CFR Part 50 and Part 58 must meet the NHTF environmental provisions when combining NHTF with other HUD funding sources.
Projects Combining...
Projects combining NHTF with HOME or other federal funds must complete a separate environmental review process for each source of funds. More information on environmental requirements for NHTF funds can be found on HUD’s website. Environmental review questions for KHC-assisted projects should be sent to environmentalreview@kyhousing.org.