The Isakson-Dodd proposal would extend the credit to June 30, 2010 and expand it to a wider circle of principal home buyers. It would also double the current  income eligibility limit to $150,000 for single taxpayers and $300,000 for married taxpayers filing a joint return.

Reporting on the Isakson-Dodd plan,  the Associated Press cited NAHB statistics that extending the credit for one year and expanding it to all buyers of a principal residence would spur 383,000 additional home sales, create more than 347,000 jobs, generate $16.1 billion in wages and salaries and $12.1 billion in business income.

While interest is growing on Capitol Hill to extend and possibly expand the $8,000 first-time home buyer tax credit that is set to expire on Dec. 1, it is still far from a done deal. A number of lawmakers are reluctant to act, particularly unless Congress imposes offsetting tax increases or spending cuts.

Meanwhile, House Ways and Means Committee Chairman Charles Rangel (D-N.Y.) says his panel plans to consider three more tax bills before the end of the year that address the economy, estate tax and tax extenders. The Bureau of National Affairs (BNA) reports that Rangel made it clear that whatever job creation or stimulus bill is considered will deal only with related extender provisions, such as the first-time home buyer tax credit.

The BNA publication said that Rangel’s Senate counterpart, Finance Committee Chairman Max Baucus (D-Mont.), remains undecided on whether to support a temporary extension of the tax credit. “We’re looking at it. There are competing arguments,” said Baucus.

House Democratic leaders plan to convene a forum of economic experts next week to discuss how to spur job creation and economic growth. The home buyer tax credit proposal is expected to be in the mix.

Revive Housing, Restore America

NAHB lobbyists are in continuous contact with House and Senate congressional leaders and encouraging action on several fronts to achieve the goal of extending and expanding the home buyer tax credit.

Through its “Revive Housing, Restore America” campaign, the association is continuing to urge lawmakers to address the tax credit and other housing priorities. To participate in this ongoing grassroots effort, builder constituents should visit www.nahb.org/ReviveHousingNow. This one-stop site contains information on calling and e-mailing members of Congress, as well as talking points, banners for Web pages, print ads, op-ed letters that can be sent to local newspapers, and more.

To generate public interest in the campaign, NAHB’s consumer-focused Web site at www.ReviveHousingNow.com asks potential buyers to contact their lawmakers and urge them to extend the home buyer tax credit.

For more information, contact Greg Brown at 1-800-368-5242, ext. 8421.

He said Congress can help resolve this issue by urging the Federal Housing Administration and Fannie Mae and Freddie Mac to adopt and enforce guidance that instructs appraisers on the proper procedures for the use of distressed and/or foreclosed properties as comparables.

This week, appraiser organizations responded to NAHB’s testimony. In a written response to the House panel, groups representing the appraisal industry recommended that mortgage lenders and financial institutions:

• Seek out the services of highly qualified appraisers for complex appraisal assignments.
• Recognize that sales concessions are as important as the condition of a property to the credibility and reliability of the appraisal.
• Provide sufficient time for the real estate appraiser to conduct the proper analysis of the subject property and comparables used.
• Promote communication between appraisers, builders and real estate agents.

This constructive response is an important step forward in resolving this important issue. For more information, contact Bill Renner at ext. 8597. [return to top]

The Senate Finance bill must be now be merged with legislation passed earlier by the Senate Health, Education Labor and Pensions (HELP) Committee. In the House, three committees have produced bills that must be melded into one legislative vehicle to go to the House floor.
With all relevant congressional committees having approved various health care proposals, House Democratic leaders and White House officials have gone behind closed doors in an attempt to hash out a deal that their own rank and file can support, perhaps with a small number of Republicans.

At this point it is unclear what final bills will emerge in the House and Senate. It is anticipated that each chamber will vote on their respective health care legislation early next month. NAHB continues to monitor the situation closely. For more information, contact Carlos Gutierrez at ext. 8242. [return to top]