Homeownership Tax Credit Bill Introduced

The NATIONAL ASSOCIATION OF REALTORS® praised U.S. Sens. Rick Santorum (R-Penn.), John Kerry (D-Mass.), and four other senators of both parties for introducing in the U.S. Senate this week the Community Development Homeownership Tax Credit Act (S. 859), which can help as many as 50,000 families a year achieve the American dream of homeownership. Companion legislation known as the Renewing the Dream Tax Credit Act (H.R. 1549) was introduced in the U.S. House of Representatives last week by U.S. Reps. Tom Reynolds (R-N.Y.) and Ben Cardin (D-Md.). Modeled after the Low-Income Housing Tax Credit, the latest legislation is expected to generate nearly $2 billion in private investment annually for the construction and/or rehabilitation of approximately 50,000 homes for sale to lower-income families. The credit also is expected to produce 122,000 construction and related jobs, $4 billion in wages, and $2 billion in federal, state, and local tax revenue. The program would provide investors with a tax credit of up to 50 percent of the cost of developing each home. The bill is similar to legislation that was introduced in both the House and Senate last session and gained the support of a bipartisan majority of Congress. The homeownership tax credit also enjoys the strong support of President Bush. NAR is part of a coalition of more than 40 housing and community organizations that back the measure. “The homeownership tax credit will help thousands of families a year purchase a home by bridging the gap between the development cost and the price at which these homes can be sold in many lower-income communities,” says NAR President Al Mansell, CEO of Coldwell Banker Residential Brokerage in Salt Lake City. “As REALTORS®, we’re committed to helping every family achieve the American dream of homeownership," Mansell says. "We look forward to working with Congress and the administration to enact homeownership tax credit legislation this year.”