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Housing

Worker, Homeownership, and Business Assistance Act

Date: 
November 6, 2009
Who: 
Congress
Policy Area: 
Fiscal Policy
Economic Target: 
Consumers
Economic Target: 
Housing
Action Type: 
Direct Spending
Action Type: 
Tax Break
Maximum Amount: 
$48.33 billion
Deficit Impact: 
-$0.04 billion

The Worker, Homeownership, and Business Assistance Act of 2009 passed in November 2009 included several extenders on provisions under the American Recovery and Reinvestment Act.

Housing Support

Who: 
Various Agencies
Policy Area: 
Sector Policy (Non-Financial)
Economic Target: 
Housing
Maximum Amount: 
$232.37 billion
Amount Spent: 
$14.20 billion
Deficit Impact: 
$17.15 billion

Beggining in the summer of 2008, the federal government provided support to the housing industry and consumers through a combination of grants, tax breaks, and government guarantees.

Source: 

 

Notes: 

Deficit impact based on CBO and JCt estimates of the ten-year budgetary impact of provisions.

Increase in Low-Income Housing Tax Credit

Date: 
July 23, 2008
Who: 
IRS
Policy Area: 
Sector Policy (Non-Financial)
Economic Target: 
Housing
Action Type: 
Tax Break
Maximum Amount: 
$11.77 billion
Amount Spent: 
$7.63 billion
Deficit Impact: 
$7.63 billion

This measure increased in 2008 and 2009 the per capita amount of the low-income housing tax credit allocable by each state. In addition, the new rule ignored the distinction between new buildings and existing buildings, allowed buidling receiving moderate rehabilitation assistance to dually qualify for the low-income housing credit, and extended the credit to some eligible students.

Notes: 

Maximum amount reflects the peak cumulative cost of the provision over the 2008-2018 period. Amount spent and deficit impact reflect CBO's estimated ten-year budget impact of the provision (http://www.cbo.gov/ftpdocs/95xx/doc9597/hr3221.pdf).

Tax Credit for First-Time Homebuyers

Date: 
July 23, 2008
Who: 
IRS
Policy Area: 
Sector Policy (Non-Financial)
Economic Target: 
Housing
Action Type: 
Tax Break
Maximum Amount: 
$4.65 billion
Amount Spent: 
$4.65 billion
Deficit Impact: 
$4.65 billion

This measure provides a $7,500 tax credit for some qualifying first-time homebuyers. The credit will be claimed on tax returns to reduce the home-purchaser's income tax liability. If any credit amount remains unused, then the unused amount will be refunded as a check to the purchaser.

Notes: 

Maximum amount reflects the peak cumulative cost of the provision over the 2008-2018 period. Amount spent and deficit impact reflect CBO's estimated ten-year budget impact of the provision (http://www.cbo.gov/ftpdocs/95xx/doc9597/hr3221.pdf).

First-Time Homebuyer Tax Credit Extension and Expansion

Date: 
November 6, 2009
Who: 
IRS
Policy Area: 
Sector Policy (Non-Financial)
Economic Target: 
Housing
Action Type: 
Tax Break
Maximum Amount: 
$12.72 billion
Amount Spent: 
$12.72 billion
Deficit Impact: 
$0.06 billion

This provision would further extend and expand the First Time Home Buyer Tax Credit, which was previously extended through November 30, 2009 in February's American Recovery and Reinvestment Act and was originally enacted in the Housing and Economic Recovery Act of 2008. This extension would continue the tax credit of up to $8,000 for housing deals signed by April 30, 2010 and completed by June 30, 2010.

Notes: 

Maximum amount reflects the peak total loss in government revenue. Deficit impact equals zero since costs of measure would be fully offset.

FHA Bill

Date: 
August 7, 2009
Who: 
FHA
Policy Area: 
Sector Policy (Non-Financial)
Economic Target: 
Housing
Maximum Amount: 
$185.00 billion

The Federal Housing Administration (FHA) became the main source for home loans to borrowers with poor credit after subprime lending markets collapsed. This bill gives new lending authority to FHA’s mortgage insurance programs that play a large role in providing low-interest housing loans, raising the loan ceiling from $315 billion to $400 billion. Additionally, the bill increases the securities guarantee authority for the Government National Mortgage Association (Ginnie Mae) from $300 billion to $400 billion.

Notes: 

Maximum amount based on increases in loan ceiling and securities guarantee. Deficit impact unknown.

Streamlined Modification Program

Date: 
November 11, 2008
Who: 
FHFA
Policy Area: 
Sector Policy (Non-Financial)
Economic Target: 
Housing
Action Type: 
Regulatory Change

Creation of fast-track method for reducing monthly payments on mortgages held by Fannie Mae or Freddie Mac, restricting payments to 38 percent of income, reducing the interest rate, extending loan periods, and, deferring principal.

Notes: 

CBO's estimate from "Budget and Economic Outlook: Fiscal years 2009 to 2019" (http://www.cbo.gov/doc.cfm?index=9957) is listed as "unknown."  FHFA is the Federal Housing Finance Agency.

Home Affordable Refinance Program

Date: 
February 18, 2009
Who: 
Treasury
Policy Area: 
Sector Policy (Non-Financial)
Economic Target: 
Consumers
Economic Target: 
Housing
Action Type: 
Regulatory Change

Mortgage owners will be allowed to refinance with less home equity than what was permitted by previous regulations.  Program applies to loans owned or guaranteed by Fannie Mae and Freddie Mac and is one of two principle programs under the Treasury's Making Home Affordable program.

Notes: 

Budgetary impact of program is not known.  Maximum and current costs also unknown.

Indymac Bank

Date: 
July 11, 2008
Economic Target: 
Housing
Maximum Amount: 
$19.06 billion
Amount Spent: 
$10.70 billion
Deficit Impact: 
$10.70 billion

The Office of Thrift Supervision closed IndyMac Bank and named the FDIC conservator. IndyMac had total assets equal to $32.01 billion and total deposits of $19.06 billion. The FDIC has insured all individual deposits up to $250,000. As conservator the FDIC established IndyMac Federal Bank as the successor to IndyMac Bank and transferred all insured deposits to the new bank. This bank closing was the second largest of 2008.

Notes: 

Although FDIC costs are counted on-budget, they should eventually be offset by proceeds from the sale of liquidated assets and higher premiums for deposit insurance. Maximum amount indicates value of total bank deposits. Amount spent and deficit impact represent the total FDIC-estimated cost to deposit insurance fund as of 3/19/2009 when IndyMac Federal was sold.

Hope for Homeowners Program

Date: 
July 1, 2008
Who: 
FHA
Policy Area: 
Sector Policy (Non-Financial)
Economic Target: 
Housing
Action Type: 
Government Guarantee
Maximum Amount: 
$1.00 billion
Amount Spent: 
< $1.00 billion
Deficit Impact: 
< $1.00 billion

'Hope for Homeowners' program allows homeowners to refinance distressed mortgages through their existing private lender and provides for an FHA guarantee of the newly refinanced mortgage.

Notes: 

Figures are taken from CBO's "Budget and Economic Outlook: Fiscal Years 2009 to 2019" (http://www.cbo.gov/ftpdocs/99xx/doc9957/01-07-Outlook.pdf) and current as of 12/31/2008.

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