Senate Housing Bill Uses Trust Fund Provisions to Help Pay for FHA Foreclosure Program.

National Low Income Housing Coalition has a press release HERE that explains how funding for Housing Trust Fund would be generated and allocated in the recently passed Senate markup of the FHA/GSE reform bill. Release says that 50% of the trust fund funding would be diverted to pay for FHA foreclosure relief provisions in first year, and 25% in the second year. Earlier bills had diverted trust fund money for disaster housing use in the first year, so it it unclear to me what the push back will be from states who would no longer receive that special allocation. As Bush administration has previously opposed housing trust fund it is also unclear whether that opposition will continue.