NAAHL, Partners Call on Trump Administration to Preserve and Expand the Federal Financing Bank Risk Sharing Program

On May 8, NAAHL and a broad coalition of housing organizations called on the Administration, in a letter to the Treasury Department, HUD, and the Office of Management and Budget, to preserve and expand the Federal Financing Bank (FFB) Risk Sharing program. The letter is signed by NAAHL and other organizations that collectively represent state and local housing finance agencies (HFAs), affordable housing lenders, developers, and advocates.

The FFB Risk Sharing program provides low-cost financing for housing projects, and requires no Congressional appropriation while generating positive cash flow back to the Treasury Department. Since its inception, the FFB Risk-Sharing Initiative has committed over $7.03 billion in loans, financing more than 56,000 affordable rental homes. But in its Fiscal Year 2027 Budget proposal, the Trump Administration signaled it has stopped issuing new commitments for the program. This policy shift from the Trump Administration would remove one of the most effective tools from the federal housing finance toolkit and imperil the financing of thousands of homes in the near-term.

“The FFB Risk Sharing program is a proven tool that builds homes and generates a positive financial return for the government,” said Sarah Brundage, NAAHL President and CEO. “Given the severity of the housing shortage, the Trump Administration should not only restore access to the program but also expand its reach so that more states can benefit from the favorable financing terms that the program offers.”