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Housing Tax Credit Extension and Expansion one step nearer

1st Time Homebuyer Tax Credit, Buyers Information, Government Housing Programs, Sellers Information 1 Response »
Nov 052009

Houses for sale
Image by I See Modern Britain via Flickr

On Monday evening, the Senate cloture vote of 85-2 moved the legislation one step closer to a full vote and a potential signing by the President later this week or weekend. HR3548 contains a trio of measures that extend unemployment benefits, extends and expands the housing tax credit, and thirdly allows for recovery of previously paid taxes for companies losing money in 2008 and 2009.

As of Weds evening both Houses had passed versions of the bill that contained similar provisions:

The details of the housing tax credit provisions look like this:

  1. The $8,000 credit for first time buyers would extend to to the end of June 2010 for contracts signed by the end of April 2010.
  2. For existing home owners who have been in there homes for five or more years, the credit would be $6,500.
  3. There are also measures to help the government catch those who attempt to cheat.

The next step is a vote on the bill by the full Senate and then the House. From what I have been reading, little opposition is expected in the House so the bill could be on the President’s desk as early as this weekend. Stay tuned for further updates.

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Posted by Tony Lazzari at 12:20 am Tagged with: , , ,

Home Buyer Tax Credit Extension Update

1st Time Homebuyer Tax Credit, Buyers Information, Government Housing Programs 1 Response »
Oct 302009

Houses for sale
Image by I See Modern Britain via Flickr

First of all, the credit has not been extended yet despite all the rumors floating around. Here is the latest information from Washington as well as a projected timeline for further action from www.FixHousingFirst.com.

The Status – From www.TheHill.com “…Under the agreement struck by Sens. Chris Dodd (D-Conn.) and Johnny Isakson (R-Ga.), the credit will last until the end of April and can be applied to homes worth up to $800,000. Dodd and Isakson said that as many as 70 percent of Americans will be eligible for it.

The home credit’s backers, which include Senate Majority Leader Harry Reid (D-Nev.), have said that it can help the economy recover and has already led to the jump in home sales seen around the country in recent months.

Isakson called the provision a “once-in-a-lifetime” credit that can “bring the housing market back to some sense of vitality and values.”

Though the previous provision could only be used by individuals making up to $75,000 and couples making up to $150,000, the extended credit can be used by individuals with incomes of up to $125,000 and couples of up to $225,000.

The deal also provides a new $6,500 credit to homebuyers looking to move out of their current homes into more expensive ones….”

The Timeline: From an email from www. FixHousingFirst.com comes this projected schedule:

As you may know, last night the Senate reached a deal on extending and expanding the home buyer tax credit, and they plan on attaching it to the unemployment insurance bill. You can see a copy of the bill here. The tax credit provisions begin on p. 14.

Near as we can tell at this moment, the process from here will go like this:

  1. There will be a cloture vote at 5 pm on Monday in the Senate on the new Baucus substitute. If it succeeds, it takes 30 hours to “ripen,” i.e., before the bill can be brought to the floor.
  2. Thirty hours later it’s Tuesday night. There will likely then be a cloture vote on the full unemployment insurance bill, as amended.
  3. Thirty hours after that, it’s Thursday morning, when the Senate will vote on final passage of the bill.
  4. The House could take up the bill as early as Thursday afternoon or Friday.  They likely will just accept the Senate bill and vote on that.  If their bill differs from the Senate bill, then the whole thing has to back through Conference. That’s unlikely at this point – and undesirable.
  5. The plan/hope is to have the bill on the President’s desk as soon as next weekend.

Obviously, this is all subject to change without notice. This is the Congress, after all.

You can see from the above that it is important to keep weighing in throughout the week – and sending this link to your network of friends, colleagues, family, neighbors, customers, employees, suppliers and urging them to do the same.  The amount of emails being sent through the Fix Housing First site has been fantastic – keep it up!”

Summary: So hang in there, be patient, something is coming in the near future. What the final product will be after both Houses get done with it, no one can predict. Keep checking back or subscribe to the RSS feed for updated information as it occurs. peace.

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Naperville Representative Biggert Pushes to Extend Homebuyer Tax Credit

1st Time Homebuyer Tax Credit, Government Housing Programs 1 Response »
Oct 092009

More of DC is jumping on the bandwagon to pass legislation to extend the tax credit. Here is Representative Judy Biggert’s press release detailing her efforts.

Rep Judy Biggert’s Press Release (copy below)

______________________________________________________________________________________

10/8/2009 12:00:00 AM Zachary Cikanek
(202) 225-3515
Biggert Pushes to Extend Homebuyer Tax Credit, Stabilize Housing Market
Washington, DC – U.S. Representative Judy Biggert (R-IL-13th) today introduced two related measures aimed at promoting economic recovery by strengthening the housing sector, boosting homes sales, and stabilizing property values.  Both bills are fully offset to remain budget neutral and would extend or amplify the popular first-time home buyer (FTHB) tax credit, which is set to expire at the end of November.

“As any homeowner will tell you, we have not yet recovered from the housing collapse that precipitated the current economic downturn,” said Biggert, a senior Member of the House Financial Services Committee and former real estate attorney.  “Home values remain low, vacant properties continue to blemish neighborhoods, and jobs in every sector of the economy from construction to finance are at risk.  The homebuyer tax credit has effectively helped to bring in new buyers and generate greater economic stability, but our recovery is fragile, and much more remains to be done.”

Biggert’s first bill would provide a six-month extension – until June 1, 2010 — of the existing FTHB tax credit for the lesser of $8,000 or 10 percent of a home’s value.  The current credit, which was established as part of the stimulus package in February, is set to expire on December 1st, but because it requires about two months to close on a home purchase, new buyers entering the market now are already effectively excluded.  A companion proposal has been introduced in the Senate by Benjamin L. Cardin (D-MD); however, Biggert’s bill also includes provisions that offset additional costs associated with the credit by reclaiming unspent portions of H.R.1, the economic stimulus.

Similarly offset, Biggert’s second bill would extend the credit for a full year, expand it to include additional homebuyers, and strengthen its impact in higher-cost housing markets like suburban Chicago.  Similar to a companion measure offered in the Senate by Johnny Isakson (R-GA), the bill would raise the maximum amount of the credit to $15,000, extend it to include non-first time buyers, and eliminate restrictions that exclude individual buyers earning $75,000 or more annually and couples earning above $150,000.  It also prevents abuse by speculators and flippers by limiting the credit to principal residences and recapturing the credit on any home sold within two years.  Finally, Biggert’s legislation would fix a flaw in the existing credit, ensuring that members of the military who are transferred to a new location or deployed overseas are not required to pay back the credit on their home simply because they’ve been relocated.

“This is a highly effective stimulus measure that should not be allowed to lapse just as we are on the verge of recovery,” said Biggert.  “But the economic benefits of the credit could be amplified significantly if we extend it beyond just first-time buyers and include growing families looking to trade-up.  This expanded credit will ensure that higher-priced suburban communities all around the country are allowed to benefit, yielding stronger job growth and promoting economic stability nationwide.  Further, our dedicated men and women in the military should never find themselves facing a tax penalty simply because they’ve been asked to serve in a new location.”

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Posted by Tony Lazzari at 1:11 pm Tagged with: ,

Homebuyer Tax Credit Extension?

1st Time Homebuyer Tax Credit, Giving Back, Government Housing Programs No Responses »
Oct 082009

Search For Homes in 60502

10/29/09 Update:  CNN is reporting that a tentative agreement has been reached on extending the tax credit for first time home buyers and adding a provision to help some current homeowners. The full release can be found by clicking the link above. As news happens it will be updated here.

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How effective has the $8,000 1st time home buyer’s tax credit been? According to the National Association of Realtors, (NAR), in Illinois, the  home buyer tax credit has brought in an additional 9,100 buyers into the market and 73,200 1st time buyers by year’s end. That is a huge impact! I recently wrote to the folks in Washington trying to get their stance on possibly extending the credit. Below is the text from an email response I received from Senator Richard J. Durbin.

Please, if you are interested in contacting Congress yourself, visit this site http://www.fixhousingfirst.com. You will have the opportunity to send an email voicing your support to this country’s leadership.  Stay tuned and check back, I will be posting additional information as the deadline nears.

Keep in mind, this credit helps the majority of homeowners, even if indirectly. When someone buys for the first time, the seller is usually buying, often up in the market. That seller then too, may be moving up. Think chain reaction of a good kind.

_______________________________________________________________________________

October 8, 2009

Mr. Anthony Lazzari

Dear Mr. Lazzari:

Thank you for sharing your support for increasing access to the first-time homebuyer’s tax credit, which expires on November 30, 2009.  I appreciate hearing from you.

I voted for the first-time homebuyer’s tax credit, which was included in the American Recovery and Reinvestment Act (ARRA) and signed into law on February 17, 2009 (PL 111-5).  This $8,000 tax credit has successfully encouraged many individuals and families to purchase a first home.

We are working our way out of one of the worst financial crises in a generation. The meltdown in the credit markets affected all segments of the economy.  The housing market was hit particularly hard and many view troubles in the housing market as a root cause of the current economic conditions.  The current homebuyer’s credit has helped stabilize the housing market.

Proponents of extending the homebuyer’s tax credit have argued that the credit has encouraged people to buy in an uncertain market.  The credit has helped many segments of the market: realtors, homebuilders, and homebuyers.  Although the economy is recovering slowly, there are concerns that if the credit is not extended the market will freeze again.  Some also argue that it should be expanded to other buyers.

Two bills have been introduced that extend or expand the homebuyer’s tax credit. S. 1678 would extend the first-time homebuyer’s tax credit through May 31, 2010, at the current rate of $8,000.S. 1230, the Home Buyer Tax Credit Act of 2009, would replace the current tax credit for first-time homebuyers with a one-time credit for all homebuyers equal to 10% of the purchase price of a principal residence, up to $15,000. This tax credit would be in effect for one year after the enactment of the bill.

These bills have been referred to the Senate Finance Committee.  While I am not a member of this committee, I will keep your thoughts in mind as Congress considers legislation to encourage home purchases.

Thank you again for sharing your views with me.  Please feel free to stay in touch.

Sincerely,

Richard J. Durbin

United States Senator

RJD/dr

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