the future of federal housing policy: what wisconsinites need to know wisconsin collaborative for...

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.

2WWW.NLIHC.ORG

The Federal Budget in a Nutshell

Based on FY15 Budget Proposed by President Obama

WWW.NLIHC.ORG

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

WWW.NLIHC.ORG

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%.

WWW.NLIHC.ORG

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

WWW.NLIHC.ORG

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

WWW.NLIHC.ORG

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

WWW.NLIHC.ORG

Income Inequality In U.S.

WWW.NLIHC.ORG

Tax rates

WWW.NLIHC.ORG

Tax Benefits by Income Under MID, Tax Credit

WWW.NLIHC.ORG

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

WWW.NLIHC.ORG