Although the final outcome of the appropriations process is far from certain given the change of leadership that has taken place in Congress, the President's proposal serves as a starting point for congressional action on the budget. Its details are therefore of significant interest to NAHB as we prepare to wage the battles that will need to be fought to ensure the best possible outcome for housing.

Highlights of the FY 2008 Budget Request include:

1.  A proposal for reform of the housing government sponsored enterprises (GSEs)
     and creation of a new independent regulatory agency to oversee the GSEs. 

2.  A proposal to revitalize FHA's single-family mortgage insurance program through
     legislation that would include an increase in the FHA single-family loan limit from
     87% to 100% of the conforming loan limit.

3.  $16 billion in funding for the Section 8 program.

4.  Elimination of the HOPE VI program from the budget.

5.  $3 billion in funding for Community Development Block Grants (CDBG), which
     is down $735 million from FY 2007.

6.  A proposal to transfer the Brownfields and Economic Development Initiative 
     program, the Rural Housing and Economic Development program and the Section 108
     Loan Guarantee program to a newly consolidated grant program under the CDBG.  

7.  An assumption that there will be an increase in the up-front mortgage
     insurance premiums for the FHA single-family programs from 150 basis points
     (1.5%) to 166 basis points. The annual MIP is also assumed to increase from
     50 basis points to 55 basis points.

8.  Elimination of the Partnership for Advancing Technologies in Housing
     (PATH) as a stand-alone program.

9.  Elimination of the Section 515 Multifamily Rural Rental Housing Direct Loan program.

10. Another call for making permanent the tax cuts enacted in 2001 and 2003.

11. Increased funding for the Building Technologies Program to $86.4 million.

12. An increase in Alternative Minimum Tax exemptions levels for 2007 to
      $43,900 for single and head-of-household filers, and $65,350 for married
       taxpayers filing jointly.

13. An indication that the EPA will seek $912 million for activities related to
       clean air and global climate change in 2008.

14. $146.5 million in funding for Endangered Species Act implementation,
       up $1.2 million from the previous level.

15. $1.518 billion for the Job Corps program, down about $55 million from 2007.

16. $50 million for the Youthbuild program to be newly housed at the Department of Labor.


NAHB Member Benefit: The president's budget serves as a starting point for congressional action on the budget, and the ensuing approprations process is certain to be highly contentious as lawmakers who craft the actual spending bills address their own legislative, district- and state- based priorties. NAHB will exercise its significant lobbying clout throughout this process to ensure the best possible outcome for housing and our members' businesses. For more information, contact Jenna Hamilton at x8407.

NAHB Member Benefit: The "Buy Now" assistance campaign for HBAs is a prime example of how your NAHB membership dues dollars are being put to work for you. NAHB routinely devotes resources and expertise to support our local HBAs and their members, and this most recent program is one of the largest such efforts yet. The idea is to help home buyers see the positives of today's housing market and drive more business to your door using tried and true advertising techniques and messages tailored to each specific market. Also, please see NAHB's Web site for a variety of "It's a Great Time to Buy" materials that you can use right now -- from press releases to sample op-eds, ads and public relations tips. All of these helpful resources are available free of charge to NAHB members. [return to top]