Homebuyer Tax Credit Extension Cost: $16.7 Billion; My Estimate of TOTAL Federal FY 2009 Home Ownership Subsidy Cost is $512 Billion.

WSJ story about extension cost is HERE.

Extension Senate Bill is S.1678, (I don't yet see an official CBO scoring for that bill).

Below is a PARTIAL listing of FY 09 federal home ownership subsidies, with links to the source document that contains the estimate.

Cost (Billions)	Use
$ 512.9	Total
$ 11.2	Cost of existing home ownership tax credit through mid September @1.4 million users X $8,000.
$ 16.7	Projected Cost of Home ownership Tax Credit Extension.
$ 290	FY 09 estimate for Fannie and Freddie.
$ 75	Estimate of costs for HAMP (Loan Refinance and Modification).
$ 120	Annual home ownership subsidies for mortgage interest and property tax deductions. (see footnote at bottom of page 17).

NOTES:

1. Subsidies for homeowners are NOT just a federal phenomena. My post HERE shows that homeowners get 91% of all housing tax subsidies from the State of Oregon.
2. HAMP costs shown above include multiyear totals; Fannie Freddie estimate may contain some multifamily related costs and costs are reduced in future fiscal years ($25 Billion in FY 2010 instead of $290 Billion in FY 2009).
3. Additional TARP costs associated with fixing financial institution problems caused by single family loan problems are NOT included.
   

Originally created and posted by the Oregon Housing Blog.