House to Consider Housing Bill Next Week
With the House expected to vote on housing stimulus package H.R. 3221 next week, NAHB is continuing its grassroots push to urge Congress to extend the effective date of the proposed home buyer tax credit beyond the current April 1, 2009 expiration date to make it as effective as possible in turning around the current downturn in home sales.
In order to maximize the effectiveness of the home buyer tax credit and get the most stimulus for the housing market and the economy as a whole, NAHB is urging lawmakers to extend the credit expiration date to take advantage of the spring and summer home buying season. NAHB members are being urged to contact their members of Congress through the association's free Legislative Hotline at 1-866-924-NAHB (6242). For complete instructions on how to participate in this telephone and e-mail campaign, click here.
Since the share value of Fannie Mae and Freddie Mac plummeted last week, House lawmakers are also looking to add to the housing bill provisions put forth by the Administration that would help to shore up the two mortgage companies. The Treasury-led proposal would temporarily expand the government’s line of credit to Fannie and Freddie and permit the Treasury to purchase an equity stake in the companies. In addition, the Federal Reserve would also be given a supervisory role over the two government sponsored enterprises (GSEs).
The centerpiece of the housing bill is a temporary, $8,000 first-time home buyer tax credit for the purchase of any home. The tax credit would spur home sales, eliminate excess inventory, relieve downward pressure on house prices and bring otherwise qualified home buyers back into the market. As the legislation now stands, the tax credit could be used for homes purchased between April 9, 2008 and April 1, 2009. Since Congress has taken so long to pass the housing bill and is not expected to finalize the bill until later this month, home buyers in effect will lose four months of being able to use the credit unless this provision is modified.
“The way the legislation is currently written, home buyers will not have the use of the credit during the critical 2009 spring and early summer buying season, when we believe the bulk of home purchases will occur,” said NAHB President Sandy Dunn. “This is why it is so important for Congress to extend the effective date of the credit through June 2009.”
H.R. 3221, the American Housing Rescue and Foreclosure Prevention Act, contains several other provisions of interest to home builders. The bill would:
- Modernize the FHA and permanently raise its loan limits.
- Give states authority to issue $11 billion in mortgage revenue bonds.
- Reform the GSEs and permanently increase the conforming loan limit to help buyers in high-cost markets.
- Enhance the Low Income Housing Tax Credit.
- Provide foreclosure relief that could help as many as 400,000 struggling home owners.
- Provide tax relief for home owners who don’t itemize their deductions.
To read H.R. 3221, click here and enter the bill number in the box at the center of the page. For more information, e-mail Greg Brown or call him at 800-368-5242 x8421, or contact Scott Meyer, x8144.
|
