Stimulus.org - Housing

Worker, Homeownership, and Business Assistance Act

Jason Peuquet — Wed, 27 Jan 2010 17:51:40 +0000

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:

48330000000

Amount Spent:

Deficit Impact:

-40000000

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.

Source:

CBO: Worker, Homeownership, and Business Assistance Act of 2009

JCT: Worker, Homeownership, and Business Assistance Act of 2009

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Housing Support

Jason Peuquet — Wed, 11 Nov 2009 22:11:19 +0000

Who:

Various Agencies

Policy Area:

Sector Policy (Non-Financial)

Economic Target:

Housing

Maximum Amount:

232370000000

Amount Spent:

14200000000

Deficit Impact:

17150000000

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.

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Increase in Low-Income Housing Tax Credit

Jason Peuquet — Wed, 11 Nov 2009 21:56:45 +0000

Housing Starts

Date:

July 23, 2008

Who:

IRS

Policy Area:

Sector Policy (Non-Financial)

Economic Target:

Housing

Action Type:

Tax Break

Maximum Amount:

11771000000

Amount Spent:

7630000000

Deficit Impact:

7630000000

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.

The measure was passed as part of the Housing and Economic Recovery Act of 2008, along with the first-time homebuyers tax credit, community housing grants, and the HOPE for Homeowners Program.

Source:

Housing and Economic Recovery Act of 2008

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).

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Tax Credit for First-Time Homebuyers

Jason Peuquet — Wed, 11 Nov 2009 21:41:41 +0000

Housing Starts

Date:

July 23, 2008

Who:

IRS

Policy Area:

Sector Policy (Non-Financial)

Economic Target:

Housing

Action Type:

Tax Break

Maximum Amount:

4648000000

Amount Spent:

4648000000

Deficit Impact:

4648000000

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.

The measure was passed as part of the Housing and Economic Recovery Act of 2008, along with an increase in the low-income housing tax credit, community housing grants, and the HOPE for Homeowners Program.

See the extension of the homebuyer tax credit in the American Recovery and Reinvestment Act and again in the Worker, Homeownership, and Business Assistance Act of 2009.

Source:

Housing and Economic Recovery Act of 2008

Notes:

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First-Time Homebuyer Tax Credit Extension and Expansion

Jason Peuquet — Fri, 06 Nov 2009 21:29:40 +0000

Housing Starts

Date:

November 6, 2009

Who:

IRS

Policy Area:

Sector Policy (Non-Financial)

Economic Target:

Housing

Action Type:

Tax Break

Maximum Amount:

12715000000

Amount Spent:

12715000000

Deficit Impact:

61000000

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. It would also expand the credit beyond first-time homebuyers by adding a $6,500 tax credit for homebuyers seeking a new primary residence. Eligible incomes for the full credit have also been modified, rising from a $95,000 or less in yearly income for individuals to $125,000. Additional rules, restrictions, and requirements apply.

The provision was passed as part of the Worker, Homeownership, and Business Assistance Act of 2009 along with an an expansion of net operating loss carryback rules and an extension of unemployment benefits.

It would cost $13 billion through 2011, although some of this would be recovered in subsequent years resulting in a ten year cost of $11 billion. These costs would be offset -- mainly by delaying, until 2018, a rule to allow the worldwide allocation of interest for the purposes of taxation.

Source:

JCT: Worker, Homeownership, and Business Assistance Act of 2009.

CBO: Worker, Homeownership, and Business Assistance Act of 2009

Notes:

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

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FHA Bill

Jason Peuquet — Wed, 19 Aug 2009 19:14:27 +0000

Date:

August 7, 2009

Who:

FHA

Policy Area:

Sector Policy (Non-Financial)

Economic Target:

Housing

Maximum Amount:

185000000000

Amount Spent Special Symbol:

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.

Source:

White House Press Release

Notes:

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

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Streamlined Modification Program

Maya MacGuineas — Mon, 17 Aug 2009 14:06:50 +0000

Date:

November 11, 2008

Who:

FHFA

Policy Area:

Sector Policy (Non-Financial)

Economic Target:

Housing

Action Type:

Regulatory Change

Maximum Amount Special Symbol:

Amount Spent Special Symbol:

Deficit Impact Special Symbol:

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.

Source:

FHFA Nov. 11 Statement

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.

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Home Affordable Refinance Program

Maya MacGuineas — Mon, 17 Aug 2009 14:01:37 +0000

Date:

February 18, 2009

Who:

Treasury

Policy Area:

Sector Policy (Non-Financial)

Economic Target:

Consumers

Economic Target:

Housing

Action Type:

Regulatory Change

Maximum Amount Special Symbol:

Amount Spent Special Symbol:

Deficit Impact Special Symbol:

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.

Source:

Treasury March 4 Term Sheet

Notes:

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

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Indymac Bank

Maya MacGuineas — Mon, 20 Jul 2009 15:29:10 +0000

Date:

July 11, 2008

Economic Target:

Housing

Maximum Amount:

19060000000

Amount Spent:

10700000000

Deficit Impact:

10700000000

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.

On 3/19/2009 the FDIC completed the sale of IndyMac Federal Bank to OneWest Bank. OneWest acquired all deposits and $20.7 billion in assets from IndyMac Federal at a discounted $4.7 billion. All 33 branches of IndyMac Federal reopened on 3/20/2009 as OneWest. The FDIC sustained losses of $2.6 billion from IndyMac Federal in the fourth quarter of 2008 due to the deterioration of the real estate market.

Source:

FDIC Release 7/11/2008

FDIC Release 3/19/2009

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.

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Housing Tax Credits

suggp — Fri, 10 Jul 2009 19:55:06 +0000

Date:

July 1, 2008

Who:

IRS

Policy Area:

Sector Policy (Non-Financial)

Economic Target:

Housing

Action Type:

Tax Break

Maximum Amount:

17450000000

Amount Spent:

12280000000

Deficit Impact:

12280000000

The Housing and Economic Recovery Act of 2008 included several stimulative housing measures, including an increase in the low-income housing tax credit and created the first-time homebuyer tax credit.

Source:

Housing and Economic Recovery Act of 2008

Notes:

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Community Housing Grants

suggp — Fri, 10 Jul 2009 19:50:59 +0000

Date:

July 1, 2008

Who:

HUD

Policy Area:

Sector Policy (Non-Financial)

Economic Target:

Housing

Action Type:

Direct Spending

Maximum Amount:

3920000000

Amount Spent:

920000000

Deficit Impact:

3865000000

Grants for redevelopment of abandoned and foreclosed homes in high-foreclosure neighborhoods.

This measure was part of the Housing and Economic Recovery Act of 2008, along with an increase in the low-income housing tax credit, creation of the HOPE for Homeowners Program, and creation of the first-time homebuyer tax credit.

Source:

Housing and Economic Recovery Act of 2008

Notes:

Amount spent indicates estimated outlays in 2009, deficit impact indicates ten year estimate, and maximum amount indicates estimated budget authority (http://www.cbo.gov/ftpdocs/95xx/doc9597/hr3221.pdf).

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Home Affordable Modification Program

Maya MacGuineas — Fri, 10 Jul 2009 17:12:50 +0000

Home Affordable Modification Program

Date:

February 18, 2009

Policy Area:

Sector Policy (Non-Financial)

Economic Target:

Consumers

Economic Target:

Housing

Action Type:

Regulatory Change

Maximum Amount:

29877000000

Amount Spent:

3585600000

Deficit Impact:

3585600000

To stabilize the housing market, the Treasury announced on February 18 the Home Affordable Modification Program, part of the Making Home Affordable Program (MHA), to offer assistance to millions of homeowners by reducing mortgage payments. The program gives homeowners the opportunity to modify their mortgages as well as an opportunity to refinance GSE loans, which can lower monthly payments.

The program is designed to provide assistance to up to 3-4 million eligible homeowners before the end of 2012. Between loans covered from over 50 servicers and loans owned or guaranteed by the GSEs, more than 85 percent of all mortgage loans in the country are now covered by the program.

On Sept. 24, 2009 a Treasury release reported that, as of September 9, more than 360,000 trial modifications were underway and 570,000 trial modifications had been offered under the program.

Source:

Housing Program "Fact Sheet"

Treasury Release 9/24/2009

Notes:

Maximum amount represents the total amount allocated to all mortgage servicers as of 8/22/2012, as reported on the Treasury's transaction reports. Amount spent is total spent on HAMP as of 8/22/2012.

Deficit impact is the same as amount spent.

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