GSE - 1

Housing & Government 

Sponsored Enterprises 

FY 2013

Congressional Justification
GSE - 2

Table of Contents

Section 1 – Purpose ....................................................................................................................... 3

1A – Mission Statement.............................................................................................................. 3

1.1 Program Account Summary .............................................................................................. 3

1B – Vision, Priorities and Context............................................................................................ 3

Section 2 – Budget Adjustments and Appropriation Language............................................... 9

2.2 Financing Account Summary ............................................................................................... 9

2.3 Summary of Mandatory Receipts – Preferred Stock Purchase Agreement .......................... 9

2B – Appropriations Language and Explanation of Changes..................................................... 9

2C – Legislative Proposals.......................................................................................................... 9

Section 3 – Budget and Performance Report and Plan........................................................... 10

3A – Preferred Stock Purchase Agreements............................................................................. 10

3.1.1 – Preferred Stock Purchase Agreement Budget and Performance Report and Plan........ 10

3B – GSE MBS Purchase Program........................................................................................... 11

3.1.2 – GSE MBS Purchase Program Budget and Performance Report and Plan.................... 11

3C – New Issue Bond Program................................................................................................. 12

3.1.3 – New Issue Bond Program Budget and Performance Report and Plan.......................... 12

3D – Temporary Credit and Liquidity Program ....................................................................... 12

3.1.4 – Temporary Credit and Liquidity Program Budget and Performance Report and Plan. 13
GSE - 3

Section 1 – Purpose

1A – Mission Statement

To provide stability to financial markets and promote mortgage affordability while at the same 

time protecting the taxpayer, Treasury has implemented four programs with respect to two 

Government Sponsored Enterprises (GSEs), Fannie Mae and Freddie Mac, as well as the Federal 

Home Loan Banks (FHLBs). These programs include Preferred Stock Purchase Agreements 

(PSPAs) with Fannie Mae and Freddie Mac, and a Mortgage-Backed Securities (MBS) Purchase 

Program limited to such securities issued by Fannie Mae and Freddie Mac. In addition to these 

programs, Treasury has purchased securities of Fannie Mae and Freddie Mac backed by new 

housing bonds issued by the Housing Finance Agencies (HFAs), through the New Issue Bond

Program (NIBP). Treasury also purchased participation interests in temporary credit and 

liquidity facilities which are obligations of Fannie Mae and Freddie Mac as part of the 

Temporary Credit and Liquidity Program (TCLP) to provide backstop liquidity and credit for 

state and local HFAs. Together, the TCLP and the NIBP comprise the Housing Finance 

Agencies Initiative (HFA Initiative).

1.1 Program Account Summary 

Dollars in millions

1B – Vision, Priorities and Context

FY 2013 Priorities:

 To provide stability to financial markets.

 To prevent disruptions to the availability of mortgage credit for American homebuyers.

 To maintain investor confidence in the GSEs and in state and local HFAs.

 To restore the capacity of state and local HFAs to provide affordable housing resources to 

working families at the state and local level. 

 To begin an orderly exit from programs where doing so does not negatively affect the 

above goals

Preferred Stock and Program Accounts

2011

Actual

2012 

Estimate

2013

Estimate

Increase (+)

Decrease (-)

Obligations:

 Preferred Stock Purchase Account

 GSE MBS Purchase Program Account

$21,766

$7,917

$39,745

$151

$12,700

$11

-$27,045

-$140

Budget Authority:

 Preferred Stock Purchase Account

 GSE MBS Purchase Program Account

$21,766

$7,918 

$39,745

$154

$12,700

$17,000

-$27,045

-$137

Outlays:

 Preferred Stock Purchase Account

 GSE MBS Purchase Program Account

$21,766

$7,922

$39,745

$155

$12,700

$11

-$27,045

-$144
GSE - 4

Preferred Stock Purchase Agreements (PSPAs)

Section 1117 of the Housing and Economic Recovery Act of 2008 (Act) authorizes the Treasury 

to purchase any obligations and other securities issued by Fannie Mae, Freddie Mac, and any 

Federal Home Loan Bank on such terms and conditions as the Treasury may determine and in 

such amounts as the Treasury may determine. On September 7, 2008, the Secretary of the 

Treasury made the determination that the Treasury’s exercise of its purchase authority under the 

Act was necessary to provide stability to the financial markets, prevent disruptions in the 

availability of mortgage finance, and protect taxpayers.

The PSPAs were created to instill confidence in investors that Fannie Mae and Freddie Mac 

would remain viable entities critical to the functioning of the housing and mortgage markets. 

Investors have purchased securities issued or guaranteed by Fannie Mae and Freddie Mac in part 

because ambiguities in their Congressional charters created a perception of government backing. 

These ambiguities fostered enormous growth in the obligations issued or guaranteed by the two 

housing GSEs and the breadth of these holdings posed a systemic risk to global financial 

markets. 

Vision: The function of the PSPAs is to enhance market stability by providing holders of Fannie 

Mae and Freddie Mac securities with additional confidence that the GSEs will remain viable 

entities. This leads to increased mortgage affordability. This commitment also eliminates any 

mandatory triggering of receivership. To this end, the PSPAs are an effective means of averting 

systemic risk while at the same time protecting the taxpayer. 

Priorities: Market stability is central to the mission of the Treasury. In this regard, the following 

priorities have been identified for mission success:

 To provide stability to the GSE securities market.

 To maintain the viability of the GSEs.

Program History: During FY 2008, the Department of the Treasury entered into agreements 

with Fannie Mae and Freddie Mac. The agreements are indefinite in duration and have a funding 

commitment limit of $100 billion each. These agreements were amended to have a funding 

commitment limit of $200 billion each, and further amended in December 2009, to replace the 

fixed-dollar-amount funding commitment limit with a formulaic limit that will automatically 

adjust upward quarterly by the amount of any cumulative reduction in net worth until December 

2012. In exchange for entering into these agreements with these two GSEs, Treasury 

immediately received $1 billion of senior preferred stock in each GSE and warrants for the 

purchase of common stock of each GSE representing 79.9 percent of the common stock of each 

GSE on a fully-diluted basis at a nominal price. No taxpayer money was spent to receive the 

senior preferred stock.

Program Outlook: Under the Preferred Stock Purchase Agreements (PSPA), Treasury has 

helped to ensure the viability of the GSEs by providing $146.4 billion of investment, net of 

dividends the GSEs paid to Treasury as of December 31, 2011. Treasury estimates that it will 

make $39.7 billion in payments under its funding commitment in FY 2012 and $12.7 billion in 

FY 2013.
GSE - 5

GSE MBS Purchase Program

The Housing and Economic Recovery Act of 2008 (HERA) gave Treasury the authority to 

purchase agency-guaranteed GSE MBS to prevent disruption in the availability of mortgage 

finance and to provide stability to financial markets.

Vision: Treasury’s investment in GSE MBS, with the size and timing subject to the discretion of 

the Secretary of the Treasury, was an element of its comprehensive plan to address challenges in 

the housing market. By purchasing GSE MBS, Treasury sought to broaden access to mortgage 

funding for current and prospective homeowners and to promote secondary market stability

while protecting taxpayers. The scale of the program was based on developments in the capital 

markets and housing markets. Given the spreads between Treasury’s cost of funds and GSE 

MBS’ yield, and that purchases occurred during a period of low prices in the market, the 

program is likely to result in a positive return to the taxpayers.

Priorities:

 To prevent disruptions to the availability of mortgage credit.

 To mitigate pressures in mortgage markets.

 To provide stability and liquidity to financial markets.

 To protect taxpayers.

Program History: During September 2008, Treasury designated private sector firms as its 

financial agents to act as asset managers and custodians. Treasury began to fund the GSE MBS 

Purchase program in September 2008; Treasury’s agents made the first purchases in the third 

week of September 2008. Program activity was initially reported in the Monthly Treasury 

Statement and is now also published in a more detailed form in the Data and Charts Center on 

Treasury.gov.

Program Outlook: Treasury purchased approximately $225 billion of MBS during the purchase

phase of the program, which ran from September 2008 until the expiration of purchase authority 

on December 31, 2010. As a result of scheduled principal repayments, the portfolio declined to 

$136 billion face value as of March 1, 2011. On March 21, 2011, Treasury began the orderly 

disposition of the MBS portfolio at a rate of up to $10 billion face value per month, subject to 

market conditions. Selling MBS is consistent with the general pattern of Treasury’s divestment 

from various financial stabilization programs when doing so can be accomplished without 

disrupting the markets or otherwise jeopardizing program goals. The disposition is expected to 

be complete by April 2012, subject to market conditions.

Housing Finance Agencies Initiative

State and local Housing Finance Agencies (collectively, the “HFAs”) are agencies or authorities 

created by state law that are charged with helping persons and families of low or moderate 

income attain affordable housing. HFAs serve numerous functions to this end including 

providing mortgages, financing affordable rental housing, providing homeownership education,

and allocating low income housing tax credits. 

HFAs have historically played a central role in providing a safe, sustainable path to 

homeownership but have experienced a number of challenges in the course of the housing

downturn, including a lack of liquidity support for existing variable rate bonds, losses on 
GSE - 6

mortgages and downgrades of re-insurance providers. Historically, HFAs have funded their 

activities by issuing tax-exempt mortgage revenue bonds (MRBs), and keeping the associated 

mortgage collateral produced on HFA balance sheets. The bond performance of HFAs has 

generally been strong. However, due to the uncertainties and strain throughout the housing sector 

and the widening of spreads in the tax-exempt market, HFAs have experienced challenges in 

issuing new bonds to fund new mortgage lending. 

To provide stability to the financial markets and promote mortgage affordability while at the 

same time protecting the taxpayer, Treasury has implemented two programs as part of the 

Housing Finance Agencies Initiative – the New Issue Bond Purchase Program (NIBP) and the 

Temporary Credit and Liquidity Program (TCLP). 

On October 19, 2009, pursuant to its authorities under HERA, Treasury announced the Housing 

Finance Agencies Initiative, including the New Issue Bond Program and the Temporary Credit 

and Liquidity Program.

New Issue Bond Program

The New Issue Bond Program (NIBP) provides temporary financing for HFAs to issue new 

housing bonds. Treasury purchased securities of Fannie Mae and Freddie Mac backed by HFA 

housing bonds, with the funding placed in escrow to be converted into new mortgages prior to 

the end of calendar year 2012. This temporarily allows the HFAs to issue new housing bonds, 

consistent with what they would ordinarily have been able to issue with the allocations provided 

them by Congress but are unable to issue given the challenges in housing and related markets. 

The program is sized to support over one hundred thousand new mortgages to first time 

homebuyers, as well as refinancing opportunities to put at-risk, but responsible and performing, 

borrowers into more sustainable mortgages. The NIBP also supports development of tens of 

thousands of new rental housing units for working families. 

Vision: The NIBP provides stability to financial markets and prevents disruptions in mortgage 

finance availability by providing a temporary supplemental market for newly issued HFA 

housing bonds. The NIBP enables HFAs to keep their lending programs active while they adapt 

to changing market conditions. The program supports the availability of mortgage credit and 

affordable rental properties for low and moderate income Americans. Facilitating supply and 

demand in the housing markets helps to stabilize them, thereby reducing losses to the Housing 

GSEs.

Priorities: 

 To provide stability to the housing market.

 To maintain the viability of the GSEs and state and local Housing Finance Agencies.

 To promote availability and affordability of housing resources for low and moderate income 

Americans.

 To protect taxpayers

Program History: During FY 2010, the Department of the Treasury entered into a 

Memorandum of Understanding with Fannie Mae, Freddie Mac and the Federal Housing Finance 

Agency (FHFA) outlining the obligations of each party with regard to the HFA Initiative 
GSE - 7

transactions. Under the terms of the NIBP, Treasury has purchased GSE securities backed by 

housing bonds issued by the state and local HFAs, with the funding placed in escrow pending the 

origination of new mortgages. Use of escrowed proceeds to finance new mortgages originally 

had to be completed by December 31, 2010; however continued disruptions in the HFA market 

have led to two one-year extensions of this deadline.

Program Outlook: Treasury purchased approximately $15.3 billion under its authority for this 

program in FY 2010. Treasury’s authority to enter additional purchase commitments under the 

program expired on December 31, 2009, however the funds remaining in escrow may continue to 

be used for the origination of new mortgages through December 31, 2012.

Temporary Credit and Liquidity Program

Fannie Mae and Freddie Mac administer a Temporary Credit and Liquidity Program (TCLP) for 

HFAs to help relieve current financial strains. Treasury purchased a participation interest in the 

Temporary Credit and Liquidity Facilities (TCLFs) provided to HFAs under the program, thus 

providing a credit and liquidity backstop. These temporary credit and liquidity facilities help the 

HFAs maintain their financial health and preserve the viability of the HFA infrastructure so that 

that HFAs can continue their Congressionally supported role in helping provide affordable 

mortgage credit to low and moderate income Americans, as well as continue their other 

important activities in communities. 

Vision: The TCLP provides stability to financial markets and prevents disruptions in mortgage 

finance availability by helping HFAs relieve current financial strains. The TCLP supports the 

HFAs through the downturn and gives them time to develop and implement more sustainable 

financing structures that preserve their critical role in extending mortgage credit to low- and 

moderate-income Americans.

Priorities:

 To provide stability to the housing market.

 To maintain the viability of the GSEs and state and local Housing Finance Agencies.

 To promote availability and affordability of housing resources for low and moderate income 

Americans.

 To protect taxpayers

Program History: During FY 2010, the Department of the Treasury entered into a 

Memorandum of Understanding with Fannie Mae, Freddie Mac and the Federal Housing Finance 

Agency (FHFA) outlining the obligations of each party with regard to the HFA Initiative 

transactions. Under the terms of the TCLP, Treasury purchased participation interests in GSE 

liquidity facilities available to support outstanding housing bonds issued by state and local 

HFAs. At the time of execution, $8.2 billion had been allocated to state and local HFAs through 

the TCLP to use the credit and liquidity facilities.

Program Outlook: Treasury incurred approximately $8.2 billion in obligations in FY 2010 that 

will remain open into FY 2013. However, to date there have been no draw requests or 

disbursements from the TCLP. Due to continued strain on the market for HFA liquidity 

facilities, Treasury announced that it will extend TCLP for three years to the end of 2015 for any 
GSE - 8

HFAs that submit a satisfactory plan on how they will reduce their liquidity risk and transition to 

private market liquidity providers. Prior to the expiration of the program, Treasury’s obligation

will continue to diminish over time as HFAs redeem the bonds supported by the program or 

otherwise reduce their need for Treasury’s liquidity support.
GSE - 9

Section 2 – Budget Adjustments and Appropriation Language

2.2 Financing Account Summary

Dollars in millions

2011

Actual

2012

Estimate 2013

Estimate

GSE MBS Direct Loans:

 Obligations

 Collections

 Financing Authority(net)

 Financing Disbursements(net)

$5,192

$108,802

-$96,214

-$103,610

$9,123

$72,190

-$70,463

-$70,524

$232

$746

-$514

-$514

State HFA NIPB & TCLP:

 Obligations

 Collections

 Financing Authority(net)

 Financing Disbursements(net)

$597

$2,202

-$1,575

-$1,605

$894

$1,780

-$900

-$1,111

$583

$3,107

-$2,073

$928

2.3 Summary of Mandatory Receipts – Preferred Stock Purchase Agreement

Dollars in millions

Preferred Stock Purchase Account

2011

Actual

2012

Estimate

2013

Estimate

Mandatory Receipts:

Senior Preferred Dividend Payments from 

Fannie/Freddie

$15,5886 $18,790 $21,690

2B – Appropriations Language and Explanation of Changes

The Housing Government Sponsored Enterprise Programs and the Housing Finance Agencies 

Initiative Programs do not receive any discretionary appropriation authority from the Congress. 

Therefore, no appropriations language is proposed.

2C – Legislative Proposals

There are no current proposals for amending the enacting legislation.

2D – Probability of Repayment

At the end of December, 2009, Treasury closed on all GSE MBS, NIBP and TCLP transactions. 

All three programs had a negative subsidy estimate at the time of purchase/obligation meaning 

anticipated net receipts for the government is in excess of outlays. Subsequent re-estimates have 

led to a positive subsidy estimate for the NIBP. Such changes in the NIBP estimate were a result 

of cash flows on actual bond issuances being timed in a manner different from the timing 

originally modeled, as well as the fact that the present value factors used to model Treasury’s 

cost of capital changed. Future re-estimates pending the formulation of a disposition strategy 

may cause the NIBP subsidy to become negative again. The subsidy estimates for the TCLP and 

MBS Purchase program remain negative.
GSE - 10

Section 3 – Budget and Performance Report and Plan

3A – Preferred Stock Purchase Agreements

(No funding): 

The function of the PSPAs is to instill confidence in investors that Fannie Mae and Freddie Mac 

will remain viable entities critical to the functioning of the housing and mortgage markets. 

Treasury entered into a PSPA with each GSE to ensure that each enterprise maintains a positive 

net worth. 

PSPAs enhance market stability by providing additional confidence to holders of Fannie Mae 

and Freddie Mac securities, which, in turn, leads to increased mortgage affordability. This 

commitment also eliminates any mandatory triggering of receivership. To this end, the PSPAs 

are an effective means of averting systemic risk while at the same time protecting the taxpayer. 

They are more efficient than a one-time equity injection, in that Treasury will use them only as 

needed and on terms that the Treasury deems appropriate.

In exchange for entering into these agreements with the GSEs, Treasury received $1 billion on 

senior preferred stock in each GSE and warrants for the purchase of common stock of each GSE 

representing 79.9 percent of the common stock of each GSE on a fully-diluted basis at a nominal 

price. The senior preferred stock accrues dividends at 10 percent per year. The rate will increase 

to 12 percent if, in any quarter, the dividends are not paid in cash, until all accrued dividends 

have been paid in cash.

Beginning March 31, 2011, the GSEs shall pay the Treasury on a quarterly basis a periodic 

commitment fee that will compensate the Treasury for the explicit support provided by the 

agreement. The Secretary of the Treasury and the Conservator shall determine the periodic 

commitment fee in consultation with the Chairman of the Federal Reserve. This fee may be paid 

in cash or may be added to the senior preferred stock.

3.1.1 – Preferred Stock Purchase Agreement Budget and Performance Report and Plan

Description of Performance:

PSPA program offices track metrics to assess Fannie Mae and Freddie Mac’s health and 

contribution to mortgage market stability. To assess the contribution of Fannie Mae and Freddie 

Mac to mortgage availability, the Housing GSE program tracks the percentage of agency MBS 

issuance of total MBS issuance and the dollar volume of mortgage purchases by the GSEs. 

During FY 2009, the majority of MBS were originated by the GSEs, contributing substantially to 

the stabilization of housing markets. To assess program management and ensure the stability of 

the GSEs, the program tracks the condition of the GSEs in coordination with the FHFA and 

makes PSPA disbursements as necessary. Increasing stability in the housing market has resulted 

in declining disbursements to the GSEs in recent quarters. Under the Preferred Stock Purchase 

Agreements (PSPA), Treasury has helped to ensure the viability of the GSEs by providing 

$146.4 billion of investment as of December 31, 2011, net of dividends the GSEs paid to 

Treasury. Projected disbursements for FY 2012 and FY 2013 are $39.7 billion and $12.7 billion, 

respectively. 
GSE - 11

3B – GSE MBS Purchase Program 

(No funding):

The function of the GSE MBS Purchase Program was to prevent disruption in the availability of 

mortgage finance and to provide stability to financial markets. 

Treasury’s investment in GSE MBS, with the size and timing subject to the discretion of the 

Secretary of the Treasury, was an element of its comprehensive plan to address challenges in the 

housing markets. By purchasing GSE MBS, Treasury sought to broaden access to mortgage 

funding for current and prospective homeowners and to promote secondary market liquidity and 

stability while protecting taxpayers. The scale of the program was based on developments in the 

capital markets and housing markets. Given the spreads between Treasury’s cost of funds and 

GSE MBS’ yield and that purchases occurred during a period of low prices in the market, the 

program is likely to result in a positive return to the taxpayer.

Treasury designated independent asset managers as financial agents to undertake the purchase,

management, and sale of portfolio of GSE MBS on behalf of Treasury. The portfolios were 

purchased and managed with clear investment guidelines and investment objectives. The 

primary objectives were to promote market stability and ensure mortgage availability while

protecting taxpayers.

The disposition of agency-guaranteed MBS is consistent with the general pattern of Treasury 

divestment of financial stabilization programs when doing so can be accomplished without 

disrupting the markets or otherwise jeopardizing program goals. The disposition was designed to 

allow Treasury to gradually exit its investment in a manner that maximizes value to the taxpayer 

without conflicting with the previous goals of market stability and mortgage availability.

Treasury’s purchases of GSE MBS were deemed as outlays, and the debt incurred to fund the 

purchases is subject to the statutory debt limit. However, Treasury received income-producing

assets in return for its invested funds. 

Treasury’s purchase authority for GSE MBS under HERA expired on December 31, 2009. 

3.1.2 – GSE MBS Purchase Program Budget and Performance Report and Plan

Description of Performance:

The MBS Purchase Program utilized a broad range of qualitative and quantitative market 

indicators in daily operations to ensure funds supported mortgage availability and promoted

secondary market stability and liquidity. In the disposition phase, similar qualitative and 

quantitative metrics are being used to ensure that the GSE MBS are sold in a way that maximizes 

taxpayer value without disrupting the availability of mortgage credit or impacting market 

liquidity. The program also utilized risk assessment techniques, including scenario analysis and 

cash flow forecasts. 

The process of selling the portfolio and managing the remaining risk currently constitutes the 

bulk of program operations. The portfolio is currently on pace to be fully sold by April 2012 and
GSE - 12

no additional purchases beyond December 31, 2009 are currently permitted under law. 

Therefore, no activity is expected in FY 2013.

3C – New Issue Bond Program

(No funding): 

The function of the NIBP is to provide stability to financial markets and prevent disruptions in 

mortgage finance availability by providing a temporary supplemental market for newly issued 

HFA housing bonds. By temporarily supplementing private demand for HFA production, the 

NIBP enables HFAs to keep their lending programs active while they adapt to changing market 

conditions. The program supports the availability of mortgage credit and affordable rental 

properties for low and moderate income Americans. 

Program sized to meet demand. HFAs submitted detailed program participation requests to 

Treasury. In order to scale back the NIBP requests to an acceptable level that could be 

recommended for adoption, a methodology was developed and applied to arrive at final 

allocation recommendations under the program for state and local HFAs. The allocation 

methodology was based primarily on the 2008 HERA allocations to HFAs and historical HFA 

issuance.

Support for both single-family and multi-family bonds. HFAs were able to request that a 

portion or all of their NIBP allocation be used to issue single or multi-family bonds. The amount 

of multi-family bond issuance is subject to a cap at the program level. 

Protecting Taxpayers. HFAs pay the GSEs and Treasury an amount intended to cover both the 

cost of financing the newly issued bonds as well as a fee designed to cover risk posed by the 

HFA. Generally speaking, the interest rate on the bond after release from escrow will be set to 

cover Treasury’s cost of financing (set at a market-based index rate) plus the additional fee 

designed to offset the credit risk to the taxpayer. 

3.1.3 – New Issue Bond Program Budget and Performance Report and Plan

Description of Performance:

Treasury continues to monitor the housing markets as well as other indicators which have an 

impact on the HFAs. Through monitoring these indicators, as well as the performance of the 

HFAs, Treasury will assess the relative health of the HFAs in FY 2013. No additional assistance 

beyond December 31, 2009 is currently permitted under law.

3D – Temporary Credit and Liquidity Program

(No funding): 

The function of the TCLP is to help relieve current financial strains for HFAs. The TCLP 

provides HFAs with temporary credit and liquidity facilities to preserve the viability of the HFA 

infrastructure. This allows HFAs to continue their Congressionally supported role in helping 

provide affordable mortgage credit to low and moderate income Americans, and other important 

activities in communities. 
GSE - 13

Reducing costs of maintaining existing financing for HFAs. Through Fannie Mae and Freddie 

Mac, the TCLP provides replacement credit and liquidity facilities to HFAs that help reduce the 

costs of maintaining existing financing for the HFAs. Treasury backstops the replacement 

liquidity by purchasing a participation interest in the GSE temporary credit and liquidity 

facilities for the HFAs using HERA authority. 

Program sized to meet demand. HFAs submitted detailed program participation requests to 

Treasury for the TCLP. No allocation process was required because requests came in at a total 

below the program cap.

Protecting Taxpayers. The HFAs pay the GSEs and Treasury a fee designed to cover risk posed 

by the HFA. Additionally the recently announced extension of the program will require 

participating HFAs to submit a plan for Treasury’s approval demonstrating how it will reduce 

risk borne by the taxpayer under the program.

Temporary solution, with incentives for HFAs to quickly transition back to market financing. 

The fee for HFAs to use the TCLP increases over time to encourage the HFAs to transition to 

private market financing alternatives as quickly as possible. This process will be accelerated by 

the required submission and approval of plans from the HFAs demonstrating how they will exit 

the program.

Terms designed to facilitate sustainable business models for housing agencies. The liquidity 

facilities under the TCLP program are only available for outstanding bonds.

3.1.4 – Temporary Credit and Liquidity Program Budget and Performance Report and

Plan

Description of Performance:

Treasury continues to monitor the housing markets as well as other factors affecting HFAs. 

Through FY 2012 and possibly into FY 2013, Treasury will review and revise plans submitted 

by HFAs that wish to extend their facilities in order to minimize risk going forward. Continued 

market surveillance and monitoring of participating HFAs will take place in FY 2013. No 

additional assistance beyond December 31, 2009 is currently permitted under law.