Fiscal cliff could have deep impact on muni housing market-S&P

NEW YORK Thu Nov 15, 2012 3:01pm EST

NEW YORK Nov 15 (Reuters) - Standard & Poor's Ratings Service said on Thursday that the "fiscal cliff" could have far-reaching effects on U.S. municipal housing given the sector's deep links to federal spending.

"The impact of budget sequestration and tax increases on municipal housing would be multifaceted," the credit rating agency said in a statement.

One of the biggest impacts would come from the proposed budget sequestration of $154 million in capital fund grants that the U.S. Department of Housing and Urban Development provides to public housing authorities (PHAs), S&P said.

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