Housing activists sue Obama administration
The Right to the City alliance filed an unprecedented lawsuit against the Federal Housing Finance Agency (FHFA) and its acting director, Ed DeMarco, on Tuesday, for illegally withholding at least $382 million from the National Housing Trust Fund, an affordable housing federal fund established in 2008.
Right to the City is a national alliance of 50 grassroots organizations in 17 cities. Its major campaign, the Homes for All campaign, unites renters, public housing occupants, homeless families and underwater homeowners to fight for affordable housing.
The 2008 Housing and Economic Recovery Act required that Fannie Mae and Freddie Mac contribute a portion of their revenue—0.04 percent of every dollar in new mortgage purchases—to the National Housing Trust Fund. As a result of the 2008 financial crisis, however, the FHFA suspended its contributions. Now, the mortgage finance giants have reported $28 billion in record-setting profits in 2012, but have yet to contribute to the fund.