PLANNING SUSTAINABLE NEIGHBORHOODS
The three critical components in designing a housing trust fund include: administration, program design, and the source of revenue.
INTEGRATION : SYSTEMS
What Is Required To Make This Tool Work?
• Experience operating a program that provides financing to housing developers • Experience working with nonprofit development organizations, government agencies, financial institutions and private developers • A commitment to address urgent housing needs through providing housing for the target population • An appreciation of innovative ways of addressing affordable housing challenges
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The housing trust fund benefits many partners. To be successfully created a strong partnership between developers, government and residents must exist. When implemented properly, housing trust funds can benefit all of these stakeholders. Developers access subsidized finance, low income households can access affordable housing and the government sees improved economic development within its jurisdiction.
ANALYSIS : SYSTEMS
How Has This Tool Been Applied?
The legislation establishing a trust fund contains a general description of the framework within which the fund operates and its objectives and mandate. After the trust fund has been constituted, additional program documents guiding its daily operations, such as programmatic and administrative guidelines and requests for proposals, are developed. The administrators of the fund retain the fiscal responsibility for it; as such, they are charged with holding, investing and administering the fund. Administrators can be quasi-governmental departments, full government agencies, an outside nonprofit entity, or a hybrid model. The ideal governing entity should meet a number of conditions. These are:
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This tool can be used to provide homebuyer assistance, subsidized rental housing, and safety net housing. By providing gap financing, matching funds, or serving as a loan source for nonprofit or private developers, housing trust funds can provide a stable and steady source of funding for affordable housing development. They are created locally using public revenues, as such they should be structured at the local level (ie provincial or district); this will allow them to prioritize and address the most pressing housing issues in their particular communities. Local control also allows for flexibility in targeting specific needs.
ADMINISTRATION
INTRODUCTION
When Is This Tool Implemented?
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Their model and governing legislation is directly related to the type of oversight board that the fund has. Generally, boards’ functions range from a more advisory to decision-making role.
INDIVIDUAL TOOLS 175