[This is another installment in a series I am working on which looks at the "priced out crisis" in America's housing market and the public policy options and politics for meeting that challenge]

As the prices of houses sky rockets and the wages of the American worker stagnate, more and more people are finding themselves without a home or in a substandard living environment [registration required]. America's effective and innovative nonprofit sector has developed proven strategies, but they lack the public investment necessary to expand their production enough to meet the need.

A few years ago a group of housing advocates struck on a new idea:
A National Housing Trust Fund

As the August recess draws near, Housing Trust Fund advocates worked hard to move the parent bill (“The Federal Housing Enterprise Regulatory Reform Act of 2005”) quickly out of the Senate Banking committee before the members leave D.C. All eyes were on S. 190 and a markup scheduled for July 28th. More after the jump.

The plan is to add a measure creating a new “Affordable Housing Fund” to the GSE oversight bill by requiring that 5% of the total profits of Fannie Mae and Freddie Mac be combined to create a new revenue source (possibly as large as $400 million/year) for the development and maintenance of housing which serves those making 30% or less of Area Median Income.

The Senate Banking Committee hit a snag when Chairman Shelby (R-AL) presented a version of the GSE bill that both does not include the Affordable Housing Fund provision, and includes “poison pills” for the Democrats including, limitations on the portfolios of GSE’s for reasons other than safety or security.

The House has passed a version of the GSE bill, including the Affordable Housing Fund, out of its Financial Services Committee. That bill has recently found opposition as conservative members have characterized the fund as somehow subsidizing the work of advocacy groups. While Chairman Michael Oxley (R-OH) has offered to expressely permit such a misuse of funds, the bill has been diverted into the Judiciary Committee which has argued that it should have had jurisdiction over the measure.

What you can do:

1.Join the National Housing Trust Fund Campaign.
2.Write a letter!
3.Learn more about the campaign.