House of Representatives Budget Chairman Paul Ryan (R-Ill.) has released his FY-2012 Budget proposal. Notably, with regard to housing, this budget calls for federal time limits and work requirements to extend the successes of welfare reform to rental assistance programs. It reduces incentives for dependency by narrowing the gap between assisted renters and unassisted renters with the same income levels, while continuing to provide a safety net to make sure that those with very low incomes can afford housing. Finally, it stops the explosive growth of this program so that aid can be focused on the truly needy.
If adopted, this would be a major departure from current policy and could be very destabilizing for owners of HUD and RD-assisted housing.
Other Highlights
The budget also proposes:
- Simplifying the corporate tax code by lowering rates from 35% to 25% and eliminating credits, deductions and carve outs. The proposal doesn’t cite which specific credits would be eliminated.
- Privatizing Fannie Mae and Freddie Mac
- Requiring regular congressional review of mandatory spending programs
