Episode 142: 2026 National Housing Trust Fund Allocations Released

HUD has released the 2026 National Housing Trust Fund (HTF) allocations for all states and jurisdictions, with a total of $255 million available — up $32 million from the $223 million allocated in 2025. The HTF exclusively targets rental housing for extremely low-income households (at or below 30% of AMI), making it a critical gap-financing layer in complex LIHTC deal structures. Developers, syndicators, and lenders should expect state HFAs to begin updating their HTF allocation plans and opening application cycles imminently. Key Takeaways: Total 2026 HTF funding is $255 million, a ~14% increase over the 2025 total of $223 million. HTF is formula-distributed to states based on the shortage of affordable units and renter household incomes — states with larger affordability gaps receive larger absolute allocations. HTF exclusively funds units serving households at or below 30% of AMI, making it structurally distinct from LIHTC, which typically targets 50–60% AMI. HTF layered with 4% or 9% LIHTC equity can close the feasibility gap on the deepest affordability units in high-cost markets. State HFAs administer HTF through allocation plans — developers should engage their state agency now to confirm application timelines and available amounts. Deals with 30% AMI set-asides that currently have an unresolved gap should be reassessed in light of updated state HTF availability. QAP amendments and HTF plan updates from state HFAs are expected in the coming weeks — watch for competitive and over-the-counter application cycles opening soon. The 2026 HTF increase arrives at a moment when deep affordability is under intense pressure from rising construction costs and land prices. For developers structuring deals in high-cost markets, this is a timely opportunity to layer HTF into capital stacks before state application windows close. Teams that engage their HFAs early will be best positioned heading into year-end underwriting cycles. Subscribe to The Spring Street Brief for daily updates on affordable housing in America.