To highlight what Monarch Housing has been reporting regarding appropriations:
FY2015 – The biggest immediate question is whether Congress will pass an omnibus spending bill for FY15 in the lame duck session. An omnibus spending bill would secure adequate funding for key housing programs. However, it is more likely that Congress will instead pass another short term Continuing Resolution (CR) and possibly end up with a year- long FY15 CR.
FY2016 – FY16 was shaping up to be a very difficult appropriations year regardless of politics, due in part to tightening overall budget caps. This remains unchanged by the election, though the approaching debt ceiling and other fiscal deadlines, as well as the possibility of a long term CR, offer the possibility that the new Republican majority will seek further cuts to government spending.
And regarding tax policy:
A tax extenders package is considered must-pass legislation; the housing and community development industries are working hard to ensure that any extenders package includes minimum rates for the Low-Income Housing Tax Credit (Housing Credit.) The biggest unknowns are whether a tax extenders package will be finalized in the lame duck session or pushed into the new Congress; whether any extenders in the package will be made permanent; and if the package will extend tax provisions for one year or two.
Tax reform will remain on the agenda in 2015, although it is very unlikely to be enacted. New leadership is committed to moving comprehensive tax reform forward, and are likely to use their new positions to continue congressional hearings on the topic. There is a continued risk that the Housing Credit could be eliminated in tax reform proposals.