February 10, 2016
The President’s Budget is out and throughout D.C. advocates are scouring the provisions. While the Republican controlled Congress is refusing to invite the OMB Director to present the budget (as is customary) the President’s budget does set forth much of the terms of the debate. Here are a few highlights in our areas of focus. A fuller briefing is forthcoming..
The President proposes to make New Markets Tax Credit permanent at $5B annual authorization.
“To support private-sector partnerships and investments that play a key role in strengthening communities, the President also proposed to expand and make permanent the New Markets Tax Credit, which promotes investments in low-income communities. Under legislation signed into law by President Obama in December, $3.5 billion in New Markets Tax Credits will be available annually through 2019. The Budget would make the program permanent with an annual allocation of $5 billion.”
The CDFI fund is increased by 5.3% and includes a new small dollar loan program advocated by Sen. Sherrod Brown to provide an alternative to predatory lending.
“Promoting economic development in low-income and underserved communities through a $12 million increase (5.3 percent) from FY 2016 for the Community Development Financial Institutions Fund for a total of $246 million”.
“The Obama administration is proposing to fund a program that would offer small-dollar loans through Community Development Financial Institutions. The proposal would dedicate $10 million toward the program. The plan would “support broader access to safe and affordable financial products and provide an alternative to predatory lending,” the administration said in the budget.”
HUD funds the HOME program at $950M and the Housing Trust Fund dollars generated by FHA will be used to assist local communities to create and preserve affordable housing.
“The White House is requesting in its fiscal 2017 budget proposal a new fee the Federal Housing Administration would charge mortgage lenders on the loans the agency insures.
FHA would raise $30 million from the fees that would be spent in part to upgrade its dated computer systems.”
“The budget includes a $1.2 billion increase for a Housing and Urban Development Department program that provides rental assistance to very low-income families and allows them move into safer neighborhoods. Another $15 million would be provided to start a pilot program that would counsel these renters on how to move and stay in their new homes.”
“The White House is also requesting $11 billion as part of an effort the president announced in his first term to end family and youth homelessness by 2020. The money would be spent over the next 10 years to provide new housing vouchers to families with children and set up more permanent properties for chronic homeless”
A special office dedicated to P3 is proposed in Treasury called Financing America’s Infrastructure to provide direct loans to infrastructure projects developed through public/private partnerships
“The Budget establishes a new Financing America’s Infrastructure Renewal (FAIR) program within Treasury that would provide direct loans to U.S. infrastructure projects developed through public-private partnerships. Eligible projects under the program will encompass the transportation, water, energy, and broadband sectors, as well as certain social infrastructure, such as educational facilities, and must meet all applicable environmental and labor standards. The program is estimated to provide $15 billion in direct loans over 10 years at no cost to taxpayers.”