With all these stimulus packages being rolled out and all of the constant changes trying to get the economy going again, it can be quite confusing as to how this may affect you and what this really means for the housing industry. This bill was passed on February 17th and is a $780 billion package which consists of the 10 major provisions below:
- Home Buyer Tax Credit–Increased to a maximum of $8,000 as a true credit, no payback.
- FHA, Fannie Mae and Freddie Mac Loan Limits–Reinstated 2008 loan limits and has increased caps in select areas. Expires December 31, 2009
- Neighborhood Stabilization– $2 Billion in additional funding to states and localities to address problems that arise when neighborhoods are negatively impacted by foreclosures.
- Commercial Real Estate– Incentives for commercial property owners to seek green building and making existing property more energy efficient.
- Rural Housing Service– An additional $500 million for existing USDA Rural Housing programs.
- Low Income– Housing Grants-Benefits states in allowing them to trade in their portion of ’09 low-income housing credits for Treasury grants.
- Tax Exempt Housing Bonds– Will not be subject to the Alternative Minimum Tax (AMT).
- Energy Efficient Housing Tax Credits & Grants– Up to $6 billion for state and local governments for energy audits, retrofits and financial incentives. Through 2010 homeowners will be able to claim a 30% tax credit for purchases of new furnaces, windows and insulation!
- Transportation Investments– $46.7 billion to states and localities for capital investment for surface transportation projects including highways, bridges, transit, and rail projects.
- Broadband Deployment– $7.2 billion in grants to promote broadband deployment in unserved and underserved areas and for mapping the availability of broad band service in the US.
This link from our Realtor Association website really highlights all of these provisions in greater detail.
Source: NATIONAL ASSOCIATION of REALTORS® www.realtor.org
