Obama Budget Blueprint Released

Sunday, February 19, 2012

The budget blueprint released by President Obama on Tuesday includes a number of items of interest to housing providers. Among other things, the measure would increase taxes on carried interest. It also proposes reforms and expansions to the LIHTC program to expand its usability. And it reduces support for affordable housing by returning to partial-year renewals for project-based Section 8 contracts.

Importantly, it includes increases in the premiums for several FHA multifamily programs, action that does not require Congressional authority to implement (see below).

Given the current partisan gridlock on Capitol Hill that is intensifying as the 2012 election nears, Congress is not expected to act on the Obama proposal. Lawmakers will begin crafting their own budget resolution and appropriations bills soon.