New Stimulus Bill additions regarding Real Estate
The economic stimulus package making its way through Congress is something that affects many if not most Virginia Realtors(R). Here’s the latest information we have on it, specifically on provisions affecting real estate.
The House and Senate have agreed on a compromise bill, which still must be voted on by the House before — assuming it passes — being sent to President Obama, who is expected to sign it into law. (You can read more details about the plan in general here.)
NAR staff has been tracking the bill, and released a statement earlier today.
Notable provisions in the almost-final bill:
- The repayment feature on the home buyer tax credit has been removed.
- The effective date of the tax credit, which is for up to $7,500, has been extended to September 1. “Households that purchase in 2009 using financing assistance from state and local mortgage bonds will be permitted to use the credit as well,” according to NAR. (“If you bought in 2008 you are out of luck,” said Ken Wingert, NAR’s legislative representative in DC.)
- The 2008 FHA and conforming loan limits have apparently beenreinstated for 2009 (“except in those communities where the 2009limits are higher”).
- Funding for states and localities for “neighborhood stabilization”is being made available, but no firm figure has been announced. NAR says “some news reports put the funding level at $2 billion.”
There’s more, including rental assistance,transportation-infractructure improvements, rural housing development,low-income housing grants, tax-exempt housing bonds, grants for energy retrofits for federally assisted housing.
In other words, there’s a lot there. We will keep you updated and give you more detailed analysis as we know more.
Information Provided by:
Virginia Association of REALTORS(R)
10231 Telegraph Rd., Glen Allen, VA 23059
Tel (804) 264-5033 Fax (804) 262-0497 Toll Free (800) 755-8271