Fannie Mae-No Politics (FNMA)

[Dollars1]

Stegman remarks
"Authorized by Congress in 2008 in the Housing and Economic Recovery Act, the Capital Magnet Fund was created to be another source of funding for Treasury’s Community Development Financial Institutions Fund to finance affordable housing and related economic development activities and community service facilities. It would do so through competitive grants to CDFIs and qualified nonprofit housing organizations. When its funding through an assessment on new GSE business was not forthcoming, in FY 2010 Congress funded the Capital Magnet Fund with a one-time $80 million appropriation.

This inaugural round of funding resulted in awards to 23 organizations in 34 states, the District of Columbia and Puerto Rico, resulting in, among other development activities, the creation of more than 8,000 affordable rental units and more than 900 owner-occupied homes and related economic development.

While the Capital Magnet Fund’s lone appropriation is now exhausted and few state and local housing finance agencies were involved in these initial awards, the reason I bring this to your attention is that in December 2014, the Federal Housing Finance Agency directed Fannie Mae and Freddie Mac to begin setting aside and allocating funds to HUD’s Housing Trust Fund and Treasury’s Capital Magnet beginning January 2015. Resumption of funding is budgeted to generate more than $1.2 billion in additional affordable housing and community development resources over the next five years beginning in 2016, including more than $400 million for the Capital Magnet Fund."

http://www.treasury.gov/press-center/press-releases/Pages/jl9984.aspx