Generally, state legislation increases the tax, so that the trust fund is relying on new revenues. Other states have used a portion of interest from real estate escrow accounts. In the past, the funding of affordable housing was an annual battle, competing with other special projects for scarce resources. A dedicated funding stream makes affordable housing an essential, dedicated item in a government budget like water, streets, schools, and bridges. For example, in Washington state, the housing trust fund has received regular capital budget dollars.
Counties often dedicate a portion of document recording fees.
Cities tend to use their zoning ordinances to obtain impact fees. Pledges from financial institutions and private foundations are sometimes used. There are more than 115 housing trust funds around the country and two dozen revenue sources that have been committed to housing trust funds. A few focus on first- time homebuyers. A handful serve only the homeless.