The Economic Stimulus Bill (The American Recovery and Reinvestment Act of 2009, H.R. 1.) also affectionately known, by some of us, as the “Spendulus Bill”, has been reconciled by the U.S. House and U.S. Senate. The details coming out fall far short of what is necessary. Here are some of the provisions.
Homebuyer Tax Credit – a $7500 tax credit that will be available for qualified purchase of a principal residence by a first time homebuyer only between January 1, 2009 and September 1, 2009. The credit does not require repayment. Individuals who purchase in 2009 using financing assistance from state and local mortgage bonds will be permitted to use the credit, as well.
FHA, Fannie and Freddie Loan Limits – Revised loan limits for FHA, Freddie Mac, and Fannie Mae. Specifics have not been released but reports indicate that the 2008 limits have been reinstated for 2009 except in those communities where the 2009 limits are higher. Additional increases in individual communities may also be available at the discretion of the HUD Secretary.
Foreclosure Mitigation & Neighborhood Stabilization – Funding for states and local communities to be used for neighborhood stabilization activities for the redevelopment of abandoned and foreclosed homes are authorized.
All of us in the real estate business know that these provisions fall short and will not provide the relief necessary for Americans to purchase a new home, protect their current home or preserve investment opportunities in residential and commercial properties.
We all understand that without a housing recovery, an overall economic recovery is impossible. The question is why don’t those in Washington get it!!!