Federal Real Estate Spending
Federal Real Estate SPENDING COMMITMENTS Smart Growth America surveyed 50 federal real estate programs to understand how federal spending influences real estate development in America. Here is what we found: $2.23 trillion Federal spending over five years (2007-2011) Each year, the federal government spends or commits approximately $450 billion on real estate, influencing development decisions across the country. $1.36 trillion For loans and loan guarantees Federal loans finance construction or renovation of residential and commercial buildings. $187 billion $680 billion Direct grants and credit subsidies Which includes incentives to spur Tax breaks and credits development of residential and commercial properties in target locations. Including the home Mortgage Interest Deduction, which cost the government nearly $400 billion over five years. This spending favors single-family homes more than the market does. Between 2007 and 2011, the Federal Housing Administration guaranteed $1.1 trillion in loans for single-family homes. During that same time the agency provided only $112 billion for multifamily homes - one-tenth the amount. This is despite the fact that demand is rising across the country for multifamily real estate. Single-family loans and guarantees $1.142 trillion Multifamily loans and guarantees $112 billion Some of this spending is helping purchase second homes. In 2011, 30% of households that claimed the Mortgage Interest 30% Deduction claimed it on a second home, despite the intent of the program to help Americans buy their primary home. 3x The majority of subsidies don't support the middle class. Households making more than $200,000 a year get nearly three times the subsidy of all other households combined. Tax credits and grants to households below $200,000 Above $200,000 No program focuses on supporting existing neighborhoods Zero current federal programs focus on in-town development or reusing infrastructure, despite the fact that these strategies are the most cost-effective. Our communities deserve better. Join the call to improve federal investment in real estate at www.smartgrowthamerica.org Smart Growth America Making Neighborhoods Great Together
Federal Real Estate Spending
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