State housing trust funds in the U.S.: A comparative study

As federal support for affordable housing continues to decrease, programs such as state housing trust funds provide a critical, and often flexible, source of assistance. Thirty-four states across the nation currently maintain housing trust funds, an increase of 55% in the last ten years, reflecting the growing expertise and capacity of the implementing agencies in the face of federal devolution. For over three years, the National Low Income Housing Coalition has promoted a national housing trust fund. In addition to government adoption and coordination, this program type uses a dedicated funding source to ensure permanency while flexibly supporting lowincome housing needs, addresses critical housing issues, leverages public and private funding, and facilitates the role of non-profits in the housing delivery process. No recent academic analysis has analyzed these defining characteristics. Using Connerly’s (1993) assessment criteria and the findings of a 2001 survey of state housing trust funds augmented by the author’s research, this study updates analysis of this increasingly common funding strategy during this significant period of expansion. Funding sources and targets, flexibility, political support, depth of subsidy, period of affordability, and coordination are criteria that are addressed. The findings assist in better understanding the opportunities and challenges associated with this critical funding source, thus contributing to the literature on housing programs.