The Future of Federal Housing Policy: What Wisconsinites Need to Know Wisconsin Collaborative for Affordable Housing July 17, 2014.

The Future of Federal Housing Policy:

What Wisconsinites Need to Know

Wisconsin Collaborative for Affordable Housing July 17, 2014

The Gap (2012 ACS data)

• There are 10.1 million extremely low income renter (ELI) households (30% AMI or less).

• 40% of ELI renter households have incomes at 15% AMI or

• There are only 3.1 million rental homes that they can afford and that are available to them.

• Thus, the national shortage is 7 million rental homes.

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The Federal Budget in a Nutshell

Based on FY15 Budget Proposed by President Obama

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Federal Budget 2015

Revenue

Individual income taxes 1,534,000,000,000Corporate income taxes 449,000,000,000Payroll taxes 1,056,000,000,000Other 297,000,000,000

3,336,000,000,000

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Federal Budget 2015

OutlaysDiscretionary 1,186,000,000,000Mandatory 2,457,000,000,000Interest 253,000,000,000

3,893,000,000,000Revenue Minus Outlays -

560,000,000,000Discretionary is 30% of total; in 2013, it was

35%.

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Outlays 2015Discretionary•Defense 623,000,000,000•Non-Defense 563,000,000,000

Mandatory•Social Security 896,000,000,000•Medicare/Medicaid 862,000,000,000•Food Stamps 84,000,000,000•SSI 60,000,000,000•TANF 17,000,000,000•Other Mandatory 538,000,000,000

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HUD 2015

$46.6 billion • 1% of all outlays• 4% of discretionary outlays

PH, PBRA, TBRA = 78% of HUD budgetHomeless Assistance =5% of HUD

budget

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Tax Expenditures 2015Total tax expenditures =175Total cost =1,241,615,000,000Homeownership tax expenditures (19% of total)• Mortgage interest deduction 73,910,000,000• Property tax deduction 33,880,000,000• Capital gains exclusion 52,250,000,000• Imputed rent exclusion 79,810,000,000LIHTC 8,240,000,000

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Income Inequality In U.S.

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Tax rates

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Tax Benefits by Income Under MID, Tax Credit

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Where the $ is

Replace the Mortgage Interest Deduction (MID)Baseline: Current Law

Impact on Tax Revenue (billions of current dollars), 2015-2024

ProposalFiscal Year Total

2015 2016 2017 2018 2019 2020 2021 2022 2023 20242015-2024

Option 1: Replace MID with 15 Percent Nonrefundable Credit and Cap Eligible Amount of Debt at $500,000 (unindexed) 11.0 17.2 20.7 23.6 26.0 28.0 29.8 31.9 33.9 34.9 257.1

Option 1a: Phase in Option 1 Over a 5 Year Period 3.7 8.9 14.9 20.8 25.5 28.0 29.8 31.9 33.9 34.9 232.4

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