The Missouri Housing Trust Fund (MHTF) has played a pivotal role in addressing the housing needs of the state’s most vulnerable populations for more than 30 years. Administered by the Missouri Housing Development Commission (MHDC), the MHTF provides essential funding for various housing-related services, including rental assistance, emergency aid, home repairs, and the construction and rehabilitation of affordable housing units. Despite its significant contributions, the MHTF has not seen an increase in the funding mechanism since it was signed into law in 1994, hindering its ability to meet the growing demand for affordable housing in Missouri.
While funding for the MHTF has remained unchanged since 1994, prices for housing and other basic necessities have increased substantially. In the 1990s, you could rent a modest apartment for $374. $20 would be enough to purchase basic necessities for the week, such as orange juice, toilet paper, laundry soap, and a gallon of milk; these same items would cost closer to $50 if purchased today. Minimum wage increased to $13.75 an hour in January but it’s still not nearly enough to cover rent in Missouri, which now averages $1345 a month.
The Role and Impact of the Missouri Housing Trust Fund
MHTF is the only state fund dedicated to addressing the impact of the affordable housing crisis. Eligible non-profits and developers can apply for funding for programs that focus on assisting low-income individuals and families with housing. These programs include:
- Construction/Rehabilitation: Supporting the development and renovation of affordable housing units.
- Rental Assistance: Providing up to 24 months of rental support to prevent homelessness
- Emergency Assistance: Offering aid for utility arrears, security deposits, and other urgent housing needs.
- Home Repairs: Funding critical repairs and modifications to ensure safe and accessible living conditions.
These initiatives have been instrumental in stabilizing housing for countless Missourians, yet the demand continues to outpace available resources. In 2025, requests exceeded $12 million while only a little more than $3 million of these requests were approved – leaving 75% of requests unfunded. These unfunded requests impacted housing affordability programs in all regions of the state –rural to urban –West Plains to Kansas City.
How MHTF Is Funded Through a Real Estate Transaction Fee
A recording fee is paid when a real estate transaction occurs. The standard fee is $21 for recording the first page and $3 each additional page. The $21 is then distributed to various state and local programs, with $3 distributed to the MHTF and an average of $7 in total going to the state, with the remaining amount to the county. This generated approximately $3 million for the MHTF in 2025 – down from $4 million in 2024. Since the funding is tied to the previous years’ real estate activity, lower activity leads to lower funding.
The Growing Need for Increased Funding
Missouri, like many states, is experiencing a housing affordability crisis. Rising housing costs are one area that is being impacted the most, in part due to the rising cost of construction – basic starter home construction is estimated to cost around $158 a square foot, accounting for 64% of new housing costs, the highest percentage on record since 1998. Even as the cost of housing increases, the funding to the MHTF has not increased.
Empower Missouri has consistently advocated for increasing the recording fee to bolster the MHTF’s capacity. Past legislative efforts, such as Senate Bill 284, reflect a growing acknowledgment of the need for enhanced investment in affordable housing and if passed, would have increased the recording deed fee disbursement to the MHTF from $3 to $9, which was estimated to increase annual revenue to approximately $9.6 million. However, as reflected in the 2025 funding requests, this still falls short of what is being requested.
In response, Empower Missouri has a campaign to introduce legislation in 2026 that would increase the recording fee disbursement to $12. This additional funding could significantly expand the MHTF’s reach, enabling more comprehensive support for housing initiatives across the state and will provide a more robust and sustainable funding stream for the MHTF, ensuring that it can continue to serve those in greatest need.
The Broader Implications of Enhanced Funding
Investing in the MHTF extends beyond addressing immediate housing needs; it contributes to broader economic and social benefits. Stable housing is foundational to individual well-being, educational attainment, and workforce participation. Moreover, increased funding can stimulate local economies through construction projects and job creation associated with housing development and rehabilitation.
Enhanced MHTF resources can also facilitate innovative housing solutions, such as supportive housing models that integrate services for individuals with disabilities or those transitioning from homelessness. By adopting a holistic approach, Missouri can address the multifaceted challenges of housing insecurity more effectively.
The Missouri Housing Trust Fund stands as a vital instrument in the state’s efforts to ensure safe, affordable housing for its residents. However, to meet the growing demand and address the complexities of the housing crisis, increased funding is imperative. By raising the recording fee and investing in the MHTF, Missouri can strengthen its commitment to housing stability, economic vitality, and the well-being of its communities.
Join the MHTF campaign to raise the real estate recording fee and improve housing affordability.
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